Why should workers care about business taxes?
Research from the European experience indicates that lower corporate taxes increase workers' wages. Click Here.
Welcome to the Tax Foundation’s CompeteUSA project.
Our goal is to raise the public’s awareness of America’s high business taxes and how those taxes are affecting our competitiveness, wages, and living standards. Just 20 years ago, the U.S. led the world in cutting business taxes to make our economy more conducive to job creation. Since then, every other industrialized country on Earth has cut its business taxes while we stood still.
Today, only Japan has a higher business tax rate than the U.S. Last year, 27 countries cut their business taxes to make their economies more competitive and attractive to investment. This year, more countries – such as Korea, Taiwan, Hong Kong, and South Africa – have announced that they will cut their corporate taxes, and even the Japanese have said that they will study the idea.
The wages and living standards of American workers are threatened as long as our business taxes remain above the world average. It is time for the U.S. to lead again.
To see a larger version of this graph, click here.
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For a humorous take on the problem of the United States’ high business tax rate, watch the Tax Foundation’s corporate tax video on YouTube.