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1 Jack M. Mintz & Duanjie Chen, U.S. Corporate Taxation: Prime for Reform 1 (2015)

handle is hein.taxfoundation/usctax0001 and id is 1 raw text is: z 4 FOUNDATION SPECIAL REPORT Feb. 2015 No. 228 U.S. Corporate Taxation: Prime for Reform By Jack M. Mintz Director and Palmer Chair in Public Policy, School of Public Policy, University of Calgary & Duanjie Chen Research Fellow, School of Public Policy, University of Calgary Key Findings * The United States has the second highest marginal effective tax rate on corporate investment in the developed world at 35.3 percent-behind only France. * While the U.S.'s marginal effective tax rate has remained stagnant around 35 percent over the last 10 years, the average marginal effective tax rate on corporate investment has fallen by 2.9 percent in the OECD and 6.8 percent in the G7. * Since 2005, 63 countries have cut their statutory corporate tax rate, lowering the average statutory tax rate to 24.4 percent across the 95 countries surveyed. Meanwhile, the U.S. corporate tax rate has remained stagnant at above 39 percent. * The lack of U.S. corporate tax competitiveness reduces investment and economic growth, undermines productivity, and encourages companies to move business to other countries. * Options to reform the U.S. corporate tax code include: reducing the top rate to 25 percent, limiting tax preferences, moving to a territorial tax system, and improving the integration of the individual and corporate tax codes. *We are indebted to Will McBride of the Tax Foundation for his helpful comments in preparation of this paper.