Sources: Market Watch, Bloomberg, USA Today
quote: http: //economix.blogs.nytimes.com/2011/05/31/are-t... quote: the United States actually has the lowest corporate tax burden of any of the member nations of the Organization for Economic Cooperation and Development.
quote: Jason, that's a common trick I see to try to make it look like U.S. corporations aren't paying their fair share of taxes. Frequently it's coupled with an argument that U.S. corporate tax rates need to be increased (even though they're already the highest in the OECD).Looking at corporate tax receipts as a percent of GDP fails to take into account that the U.S. has a substantially lower overall tax burden than most OECD countries. In other words, it is not a valid data point for the question: "Are corporations paying their fair share of taxes?" (ignoring for this post that the difference between corporate and personal taxes is irrelevant)The U.S. typically sits at 25%-28% tax revenue as percent of GDP, while the OECD average is around 35%.http://www.oecd-ilibrary.org/content/table/2075851...http://www.oecd-ilibrary.org/taxation/taxes-on-cor...If you take the average of the 2003-2009 data from the above two tables, you find that:- U.S. tax revenue is 26.4% of GDP- OECD tax revenue is 34.7% of GDP- OECD tax revenue is 1.315x higher than the U.S.- U.S. corporate tax revenue is 2.56% of GDP, 9.70% of total- OECD corporate tax revenue is 3.41% of GDP, 9.85% of total- OECD corporate tax revenue is 1.335x than the U.S.In other words, corporations aren't being favored in the U.S. The ratio of corporate tax receipts to overall tax revenue for the U.S. and the OECD average are virtually identical. By OECD standards, U.S. corporations are paying their fair share of taxes. The lower tax revenue from corporations in the U.S. is almost exactly explained by the lower overall tax burden in the U.S.(The difference isn't quite so close. Ideally, you should subtract the U.S. from the OECD average before comparing. But it's late, I need to get to sleep, and the U.S. represents just 1/34th of the average so the error is going to be very small.)