Effective Corporate Tax Rate Falling
Further to my earlier post critiquing the recentÂ Mintz study -Â which argued that cuts in corporate tax rates are not significantly denting corporate tax revenues – I looked up the effective corporate tax rate (income tax paid as a percentage of taxable corporate income.) Here is what shows up on CANSIM 180-0003.
2006 – 31.0%
2007 – 29.9%
2008 – 27.5%
2009 – 27.0%
Does anyone detect a trend?
>>Does anyone detect a trend?
Yes. A rate which is absurdly high by OECD standards was even higher a few years ago.
just checked out data on corporate taxes on OECD website (OECD Tax Database, C. Corporate and Capital Income Taxes, Basic (non-targeted) corporate income tax rates).
Your statement did not bear out. Corporate taxation in OECD countries ranges from 12.5% in Ireland to 39.5% in Japan. Note that in Greece the rate is 20%.
Would you like to live in Greece or Ireland?