Often on talk radio I constantly hear people cry about the high coporate tax rate of 35% and that it’s driving business out of the country. Isn’t it true that these same coporations can just use a loop hole and avoid the high tax rate? That would seem to take care of paying such a high tax rate when other countries have a lot lower coporate tax rate.
The effective tax rate in the USA is 2nd highest among the countries in the study. The Bahamas have the lowest effective tax rate at 5-15% depending on the size of the corporation. The USA effective tax rate is 23% for domestic firms and 28% for foreign firms. Only Japan is higher at 37% domestic and 38% foreign.