The Tax Foundation has released statistics of corporate income taxes in America.  The results are disturbing and really equate to an internationally recognized “closed for business sign.”

The federal corporate income tax rate of 35% alone is the world’s highest, although there are a whopping three other countries - Japan, Germany, and Canada - whose combined national and sub-national income taxes exceed just the U.S. federal corporate tax rate.  France has lower corporate taxes than anywhere in the U.S.

Iowa is the worst offender with businesses paying a whopping 42% in combined federal and state income taxes.  This gives the state the dubious honor of having the highest corporate tax burden in the world.  They are one of 24 states whose combined corporate tax burden is higher than in any other country.

Even here in notoriously low-tax Alabama our flat 6.5% tax on corporate profits makes our combined (and adjusted) state and federal taxes nearly 38%.  In other words for every dollar a corporation earns in profit the government takes almost 40 cents.  There are only two countries in the entire world who are less business friendly than Alabama.

But don’t pay attention to statistics like this.  You just keep thinking that corporations are bad and that they aren’t paying their fair share.  Pretend they don’t pass those taxes on to real people anyway.  Keep your head in the sand and pay no attention to the fact that our tax code pushes away prospective and current employers.

For those who are interested, there is a better way.

• It’s all relative
• Your real tax rate: 40%
• The fact is… it’s tax
• Taxation without comprehension
• George Bush making the right economic decisions

This entry was posted by Brian on Friday, March 21st, 2008 at 7:58 pm and is filed under Taxes. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site. Please note the copyright policy.