James F. McDonough
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732-568-8360 jmcdonough@sh-law.comFirm Insights
Tax Foundation Ranks US Tax Code 31 Out of 34 Developed Nations
Author: James F. McDonough
Date: September 23, 2014
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The Tax Foundation, a think tank that examines issues of public tax policy, released a new report ranking the tax codes of the 34 developed countries in the Organization for Economic Cooperation and Development.
The U.S. was ranked poorly, coming in at number 31 out of 34, according to Business Insider. Estonia, New Zealand and Switzerland came in at Nos. 1, 2 and 3, respectively. Only Portugal and France were ranked below the U.S.
“The United States scores poorly largely because it maintains the highest corporate tax rate in the developed world at 39.1 percent and is one of the six remaining countries in the OECD with a worldwide system of taxation,” the Tax Foundation said, according to the news source. “Its poorly structured property, individual, and capital gains and dividends taxes also contribute to the low ranking.”
Estonia in particular was praised for having “the most competitive” tax code in the developed world, including a 21 percent tax rate for individuals and corporations. The U.S. corporate income tax is 35 percent, a level that has received criticism for being one of the highest in the developed world.
While the Tax Foundation maintains that it is non-partisan, a number of left-leaning figures have alleged that the think tank holds a conservative slant. Notably, Paul Krugman has accused the organization of a pro-business agenda in a piece titled, The Greek menace.
Whether the think tank maintains a slant or not, this recent report highlights the importance of taxation issues in America. Corporate inversions in particular have drawn heavy criticism for taking tax dollars out of the country. As the November elections draw closer, expect to see further rhetoric from all sides.
Interested in reading more about tax codes? Check out tax attorneys, Frank L. Brunetti’s Overhaul of Corporate Tax Code Proposed and Joseph M. Donegan’s Businesses Cite Tax Code Uncertainty as a Critical Problem
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
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