How Much Are U.S. Companies Paying in Corporate Taxes?

how-much-are-us-companies-paying-in-tax

It’s no secret that the nation’s wealthiest individuals pay the most in taxes, but did you know that the United State’s corporate tax rate is also among the world’s highest? According to a report from Accounting Today, accounting and consulting firm UHY, says the U.S. corporate tax rate is 41.1 percent. That represents a much higher rate than the global average, which UHY reports is 27 percent.

A closer look at the numbers reveals that for European countries the average corporate tax rate is 25.3 percent, while the average rate for the G7 countries comes in at 32.3 percent. The good news for American companies is that the effective corporate tax rate is typically much lower than the 41.1 percent statutory rate. That number is often offset by several different tax deductions and tax-planning opportunities.

There are many advantages of having lower corporate taxes. For example, lower taxes can help free up more profits which in turn can help countries stimulate more new growth and contribute to creating a more competitive advantage by discouraging companies from jumping ship to foreign countries with more completive tax rates. Likewise countries with lower corporate tax rates can also attract businesses from other countries, which is also an effective way to improve a country’s economic growth and competitiveness.

http://www.accountingtoday.com/news/tax-practice/study-shows-us-corporate-tax-rate-among-highest-78113-1.html/

Posted in
Top 5 Ways to Get Out of Debt

Top 5 Ways to Get Out of Debt

Top 5 Ways to Get Out of Debt Another New Year is upon us and many people like to use this time to evaluate their life, including their financial well-being. It’s also a time to make resolutions or goals. One common goal at this time of year is to finally get out of debt. Debt…

Should Millennials Be Worried About Their Money Under Trump?

Should Millennials Be Worried About Their Money Under Trump?

Should Millennials Be Worried About Their Money Under Trump? President Trump is coming and ready or not his presidency will likely affect you to at least some degree. While trump’s policies will have varying degrees of influence on different people, depending on their life circumstances, almost everyone will see changes to their financial status once…

How the Wealthy Start Charitable Foundations

How the Wealthy Start Charitable Foundations

How the Wealthy Start Charitable Foundations Many of the world’s wealthiest individuals share many common traits and life experiences. They also share a common interest in using their wealth for good. Some of the world’s greatest how to start a charitable foundation was founded by some of the wealthiest people, including Bill and Melinda Gates,…

Top 7 Traits of Successful Business Leaders

Top 7 Traits of Successful Business Leaders What does it take to become a successful leader in business? There are many traits that people associate with being a good business leader, but some are more important than others. Ultimately, if you want to end up being good at being in charge you will almost certainly…