Tax The Rich: US displaces Japan for highest corp taxes

Japan, US have been tied for the top combined, statutory corporate rate, with levies of 39.5% and 39.2% respectively.

WASHINGTON: The United States (US) will have the developed world’s highest corporate tax rate after Japan’s drops to 38.01% this Saturday. Japan and the US have been tied for the top combined, statutory corporate rate, with levies of 39.5% and 39.2% respectively. These rates include central government, regional and local taxes. Japan’s reduction, prompted by years of pressure from Japanese politicians hoping to spur economic growth, will give that country the world’s second-highest rate. This has triggered complaints from US politicians and business groups. In February, President Barack Obama proposed a corporate tax reform blueprint that included a 28% top rate. The average 2012 corporate tax rate for the 34 developed countries is 25.4%, according to the Organisation for Economic Co-operation and Development.

Published in The Express Tribune, April 1^st, 2012.