In the global battle for business, America is losing because its corporate tax rate discourages investment in the U.S. economy. The reason is quite simple: U.S. corporate tax rates are high by international standards. According to the OECD, the top U.S. corporate tax rate (federal and average state rate combined) was 39.1 percent in 2009, second highest among the 30 OECD countries after Japan (39.5 percent), and roughly 50 percent higher than the average for the other 29 OECD countries (25.9 percent). High corporate tax rates hinder a country’s investment, productivity and economic growth.
Comprehensive tax reform must be a priority in order to create the business environment that encourages investment and job creation in the United States.