Since our tax code was last overhauled by President Ronald Reagan in 1986, the American corporate tax rate has stayed consistently high, hovering at a combined federal and state rate of 39% while the worldwide average has steadily dropped to just over 22% today. Our new video, “America’s Excessive Corporate Tax Rate,” is part of an ongoing series and examines the costly effects of America’s record high corporate tax rate.
With America’s high rate – the highest in the industrialized world – we have systematically encouraged American companies to uproot and relocate abroad. Along with them, millions of jobs have been taken away from hardworking Americans, and over $2 trillion in fortunes have been held overseas to avoid paying the United States’ outrageous tax rates. Reducing the corporate tax will also help workers, who currently bear 80% of the corporate tax burden, and would see their wages rise under a lower rate.
Fortunately, we are on our way towards reducing our sky-high tax rate, and we’re set to reshape our tax code to attract business investment in America, not the other way around. Republican leadership in the House has announced their plan to release their tax reform bill on November 1. With a clear path forward, tax reform legislation should be signed into law this year.
Watch our new video addressing how the negative effects of our high corporate tax rate have harmed economic growth in the U.S. This video is the first in a series on tax reform that NTU will be releasing. Stay tuned!