Are US corporations feeding at the trough of low taxes?
Not if you believe the figures from a University of Calgary – C.D. Howe Institute study comparing tax rates in 80 countries – remember, they’re Canadians (hat tip Stephen Gordon). In this list, which includes all the major economies, the U.S. ranks in 3rd place for the highest corporate tax rate for advanced economies (I didn’t include Chad on that list).
Am I saying we should lower taxes? No. The U.S. Government needs more income, not less. The same argument holds in the UK, although less so, as tax rates are lower for UK corporates (11th amongst advanced economies). But, when populists tell you that corporations are not paying their fair share, you have to be skeptical.
So when this housing bust has John McCain or Barack Obama and Gordon Brown dialing for dollars because of the gaping hole in American and British public finances, corporations may not be the best place to call ad get the cash.