America Needs A Competitive Corporate Tax Rate

Increasing the corporate tax rate would put US companies at a competitive disadvantage against our global competitors, including China.

• The current U.S. federal-state combined tax rate is 25.8%, higher than the average corporate tax rates in Asia, Europe, and the OECD.
• The US rate is higher than the 15% rate China applies to favored industries, including high-tech and software, and sectors important to their global supply chain.
• Raising the U.S. rate to 25% (a combined U.S. rate of nearly 30%) would force US companies to pay a U.S. rate nearly 15 percentage points— 97% — higher than the tax rate China sets on its most important business sectors.

American workers and families will bear the burden of a corporate tax hike.

• Studies have shown that as much as 70% of the burden of a corporate tax rate increase falls on working families.

• A Federal Reserve Board study found that a corporate tax rate increase would be “uniformly harmful to workers,” and would cost a typical American household thousands of dollars a year in lower wages.