One of the topics being discussed a lot in the tax world these days is corporate tax. I usually tend to just report on facts and give strategies on my blog, and save my opinions for the forum, but I’m breaking that rule today. That’s because I feel so strongly about the need to change our current corporate tax rate.
Currently, the US has the 2nd highest corporate tax rate. The combined federal and state rate is 39.3%. The only nation that is higher is Japan at 39.5% and it looks like they will be getting a 10% cut. That would mean the US has the highest corporate tax rate.
It also means that we are 50% higher than the average OECD (Organization of Economic Cooperation and Development) nation. And 70% of the corporate tax is passed through to the workers in the former of lower wages and less benefits.
It also means that multi-national corporations will continue to move operations offshore, costing jobs and a declining dollar, because they’ll go where the taxes are lower.
Most of the members of the TaxLoopholes community are business owners and/or investors. That’s on purpose. I want to support the people who have taken the chance to become entrepreneurs, who have the dream that there is something more to life than just working 8 -5, pinning all their hopes on someone else’s plan and who know that if there is going to be change in their life, it’s up to them. Business owners deserve less tax. It makes sense for the workers of the corporation and it makes sense for our economy.