Lowering Corporate Taxes—the Party America Missed

Over the last 25 years, most industrialized countries have lowered their corporate tax rates. Global capital is increasingly mobile, and corporations seek lower-tax localities.

The United States has refused to follow this trend. According to the Organization for Economic Co-operation and Development (OECD)

, our combined federal and state corporate income tax rate actually increased from 25 years ago, from 38.6 to 39.1 percent.

The average federal and state corporate tax rate in the countries that comprise the OECD declined 42 percent since 1988. Countries such as Ireland (-73 percent), Sweden (-61 percent), and Germany (-50 percent) all saw above-average declines.