Corporate Income Tax, The Most Harmful Tax for Economic Growth

The Organization for Economic Cooperation and Development (OECD) recently ranked various tax policies according to their impact on economic growth.

Corporate income taxes proved most harmful to the economy, followed by personal income taxes, and then consumption taxes.

The executive summary of the report is available here.

Of the 34 countries in the OECD, the U.S. has the highest statutory corporate tax rate (35%).

While other countries, such as Ireland and Japan, have steadily been lowering their tax rates over the last two decades, the United States has not cut its top statutory rate since 1993.

As the U.S. begins its economic recovery, it is essential that unnecessary burdens on businesses are lifted so the economy can move forward, grow, and create jobs.

About Steve Bartlett

Steve Bartlett is President and CEO of The Financial Services Roundtable, and has served in that role since June 1999. Previously, he was the Mayor of Dallas, Texas (1991-95), a Member of the United States Congress (1983-91), and on the Dallas City Council (1977-81). At The Financial Services Roundtable, Mr. Bartlett has had a major impact on legislation including Gramm-Leach-Bliley, E-SIGN, the 2001-2003 Tax Cuts, the Fact Act (FCRA), Class Action Reform, consumer bankruptcy reform, regulatory reform and TARP.
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