KPMG has tracked the movement of corporate tax rates around the world for nearly two decades. Up until 2009, the long term trends have been “strong and consistent” with international tax rates falling.
The chart below shows global average corporate tax rates:
Beginning this year, however, reduction in corporate taxes has slowed and stopped altogether in several countries. The chart below illustrates the year-on-year change of global average corporate tax rates:
So where does the United States stand in this picture? The United States corporate income tax rate stands at 40%, the third-highest rate among 116 countries surveyed and tying with Libya. The chart below (via Cato @ Liberty) puts things in perspective:
Bevan Sabo
Ariel Goldring
Guest Blogger
[...] the long term trends have been “strong and consistent” with international tax rates falling. See the charts and read all about it at Free Market Mojo. [...]
To me it still looks like the same trend holds, the drop in 2008 was a bit bigger than normal and in 2009 a bit smaller, but the overall trend seems to be the same. I hear Australia is considering reducing its corporate rate to 25% and NZ is considering following (both 30% at present).