USA Ranks #32 in World Taxing Policy Index

[Chef Ramsay]

Probably a not totally accurate title but the article says a lot considering most people think of the USA as the freest of the free on most things.

Any day now the White House and Sen. Charles Schumer (D., N.Y.) will attempt to raise taxes on business, while making the U.S. tax code even more complex. The Obama and Schumer plans to punish businesses for moving their legal domicile overseas will arrive even as a new international ranking shows that the U.S. tax burden on business is close to the worst in the industrialized world. Way to go, Washington.

On Monday the Tax Foundation, which manages the widely followed State Business Tax Climate Index, will launch a new global benchmark, the International Tax Competitiveness Index. According to the foundation, the new index measures "the extent to which a country's tax system adheres to two important principles of tax policy: competitiveness and neutrality."

A competitive tax code is one that limits the taxation of businesses and investment. Since capital is mobile and businesses can choose where to invest, tax rates that are too high "drive investment elsewhere, leading to slower economic growth," as the Tax Foundation puts it.

By neutrality the foundation means "a tax code that seeks to raise the most revenue with the fewest economic distortions. This means that it doesn't favor consumption over saving, as happens with capital gains and dividends taxes, estate taxes, and high progressive income taxes. This also means no targeted tax breaks for businesses for specific business activities." Crony capitalism that rewards the likes of green energy with lower tax bills while imposing higher bills on other firms is political arbitrage that misallocates capital and reduces economic growth.

The index takes into account more than 40 tax policy variables. And the inaugural ranking puts the U.S. at 32nd out of 34 industrialized countries in the Organization for Economic Co-operation and Development (OECD).

With the developed world's highest corporate tax rate at over 39% including state levies, plus a rare demand that money earned overseas should be taxed as if it were earned domestically, the U.S. is almost in a class by itself. It ranks just behind Spain and Italy, of all economic humiliations. America did beat Portugal and France, which is currently run by an avowed socialist.

This kinda goes hand in hand w/ my thread on Americans getting poorer.

More...http://online.wsj.com/articles/were-number-32-1410729349

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[TheButterZone]

Who is John Galt

[IacceptBTC]

This is sad but true. This is also why so many businesses are taking steps to move overseas. The long term effects of the highest corporate tax rate in the industrialized world will be lower economic growth domestically and lower overall tax revenues.

[bryant.coleman]

Here is the comparison between Russia and the United States:

Income tax: 13% in Russia & 39.6% in the United States
Corporate tax: 15.5% to 20% in Russia & 38% in the United States
Dividend tax: 9% in Russia & 28.6% in the US (State + Federal)
Short term capital gains tax: 13% in Russia & 39.6% in the United States
Long term capital gains tax: 0% in Russia & 20% in the United States

[Chef Ramsay]

Here is the comparison between Russia and the United States:

Income tax: 13% in Russia & 39.6% in the United States
Corporate tax: 15.5% to 20% in Russia & 38% in the United States
Dividend tax: 9% in Russia & 28.6% in the US (State + Federal)
Short term capital gains tax: 13% in Russia & 39.6% in the United States
Long term capital gains tax: 0% in Russia & 20% in the United States

The socialist left has been trying to do everything they can to depress the United States into some stagnant and declining 2nd rate country for years now. NAFTA started the bon voyage of middle class jobs elsewhere and these tax rates are finishing off the rest of the productivity. Will Americans start to see/get the big picture here and make a move or just let the titanic go down?

[Full Spectrum]

Here is the comparison between Russia and the United States:

Income tax: 13% in Russia & 39.6% in the United States
Corporate tax: 15.5% to 20% in Russia & 38% in the United States
Dividend tax: 9% in Russia & 28.6% in the US (State + Federal)
Short term capital gains tax: 13% in Russia & 39.6% in the United States
Long term capital gains tax: 0% in Russia & 20% in the United States

The socialist left has been trying to do everything they can to depress the United States into some stagnant and declining 2nd rate country for years now. NAFTA started the bon voyage of middle class jobs elsewhere and these tax rates are finishing off the rest of the productivity. Will Americans start to see/get the big picture here and make a move or just let the titanic go down?

All you have to do is look at California, which is hemorrhaging its middle class, but California doesn't care sadly. The only thing California cares about is more silicon valley startups...

[AdamSmith]

Here is the comparison between Russia and the United States:

Income tax: 13% in Russia & 39.6% in the United States
Corporate tax: 15.5% to 20% in Russia & 38% in the United States
Dividend tax: 9% in Russia & 28.6% in the US (State + Federal)
Short term capital gains tax: 13% in Russia & 39.6% in the United States
Long term capital gains tax: 0% in Russia & 20% in the United States

The socialist left has been trying to do everything they can to depress the United States into some stagnant and declining 2nd rate country for years now. NAFTA started the bon voyage of middle class jobs elsewhere and these tax rates are finishing off the rest of the productivity. Will Americans start to see/get the big picture here and make a move or just let the titanic go down?

All you have to do is look at California, which is hemorrhaging its middle class, but California doesn't care sadly. The only thing California cares about is more silicon valley startups...

Technology innovation in silicon valley is over hyped. They will most likely see the fall out in the coming years as the country can no longer afford cheap money.

[bryant.coleman]

All you have to do is look at California, which is hemorrhaging its middle class, but California doesn't care sadly. The only thing California cares about is more silicon valley startups...

It is only a matter of time before most of the technology firms (including those based in the Silicon Valley) move to some tax-friendly state, such as Nevada or Utah. Who knows, even the Hollywood sector might follow suit. After that, California with all its illegal aliens and refugee cities will be a third world ghetto, if it isn't one right now.

[hodap]

All you have to do is look at California, which is hemorrhaging its middle class, but California doesn't care sadly. The only thing California cares about is more silicon valley startups...

It is only a matter of time before most of the technology firms (including those based in the Silicon Valley) move to some tax-friendly state, such as Nevada or Utah. Who knows, even the Hollywood sector might follow suit. After that, California with all its illegal aliens and refugee cities will be a third world ghetto, if it isn't one right now.

Many movie production already moved to Canada. Actor there also a lot cheaper than the US one.

[leannemckim46]

All you have to do is look at California, which is hemorrhaging its middle class, but California doesn't care sadly. The only thing California cares about is more silicon valley startups...

It is only a matter of time before most of the technology firms (including those based in the Silicon Valley) move to some tax-friendly state, such as Nevada or Utah. Who knows, even the Hollywood sector might follow suit. After that, California with all its illegal aliens and refugee cities will be a third world ghetto, if it isn't one right now.

For some strange reason these firms tend to be very liberal. I agree that technology firms will eventually move to more tax friendly states, but this will not happen before shareholders force this to happen by putting pressure on managers of the tech firms.

[Fabrizio89]

Well it's not surprising when there are countries like mine (Italy) that put a tax pressure of about 55% on middle class and even higher on low income jobs. It's becoming really difficult to mantain a family for whoever has (or in most cases had since unemployement rate won't stop rising) a manifacturing job.
Here's the table http://taxfoundation.org/article/2014-international-tax-competitiveness-index