The corporate tax rate for American companies still stands at 39% if you include taxes at the state level — we still have the dubious distinction of leading the world when it comes to the highest business tax rates.
STATE PREP: Several U.S. state governments are considering corporate rate adjustments in the near future. Governor Tom Wolf of Pennsylvania has proposed the state reduce its corporate income tax to 6.49% from its current level of 9.99% by 2022, the Pennsylvania Business Journal Reports. And, Republican lawmakers in Missouri are following suit, forwarding a proposal that would reduce the corporate income tax to 4% from 6% by 2020.
SELF-REFLECTION IN CHINA: In addition to their careful consideration of the U.S. “border adjustability” proposal, Chinese economists and policy experts are being prompted to consider their nation’s general tax competitiveness by American political developments, the Financial Times reports. “The fact is, with or without Trump our tax rate is too high,” Sheng Hong, director of the independent think-tank, the Unirule Institute of Economics, tells the Financial Times. Hong’s research suggests “Chinese corporate taxes reached as high as 45.6 per cent when factoring in additional fees levied by local governments, social security payments and other royalties.”
…AND IN EUROPE: The Chinese corporate rate discussion builds on similar conversations emerging around tax competitiveness in the United Kingdom and the rest of Europe—prompting Prime Minister Theresa May’s plans to seriously reexamine corporate taxes post-Brexit. In Malta last week, The Independent reports, German Chancellor Angela Merkel denied Germany would “follow suit” on a British rate reduction, regardless of competitive pressures. Meanwhile, the Financial Times reports that Switzerland is set to vote this week on a plan that would simplify its corporate tax regime across the board and lower the official corporate income tax rate broadly.
2017: “The chances of tax reform occurring are the best we’ve seen in 30 years,” Former Ways and Means Committee Chairman Dave Camp told the Wall Street Journal this week. An especially positive aspect of the ongoing tax reform discussions is the unification of Republican support for a major corporate income tax rate cut, with the House GOP blueprint aiming to lower it to a 78-year-low of 20%.
WE WANT TO KNOW: Can the 115th Congress and the new president successfully tackle Tax Reform in 2017? Log on to our Facebook page and let us know what you think!
AND, REMEMBER THE RATE PLAN: The U.S. corporate tax rate is already the highest in the world, which is why we believe our plan to fix the tax code, to set the corporate tax rate at a globally competitive 25% or less, to close tax loopholes, to keep American companies in America, and to enable the U.S. economy to grow resulting in a higher standard of living for American workers is the best path forward.
CONTACT US: For questions or for additional resources, please contact Michael DiRoma of The RATE Coalition and QGA Public Affairs at firstname.lastname@example.org.