Tax Facts

Archived Tax Facts

ACT Tax Facts: A 20% U.S. Corporate Tax Rate is Vital to Global Competitiveness

Some have suggested a 22 percent corporate tax rate would allow the United States to compete for corporate headquarters, investment, and jobs in today's global economy because it is below the 23.8 percent average corporate tax rate of other OECD countries. This comparison ignores the fact that, in …

ACT Tax Facts: Interest Deductions and Tax Reform

The Administration and Congressional Leaders have emphasized that achieving a higher rate of U.S. economic growth is of paramount importance for tax reform. The potential for higher economic growth will be realized if the United States becomes a more attractive location for investment, and this will…

ACT Tax Facts: Foreign Minimum Tax on US-Headquartered Global Companies

The attractiveness of the United States as a jurisdiction in which to locate the headquarters of a global company is markedly declining. Since 2000, the number of US-headquartered companies in the Forbes 500 list of global companies has declined by over 25 percent, from 202 in 2000 to 147 in 2016.1 …

ACT Tax Facts: It's the 30th Birthday of the U.S. Tax Code and The World Is a Very Different Place Today

October 22nd marked the 30th anniversary of the 1986 Tax Reform Act, but the world is a very different place today than it was when the United States last undertook tax reform. Like cassette tapes and fanny packs, the tax code is outdated and out of style. In light of the 30th anniversary of the Tax…

ACT Tax Facts: To Fix the International Tax System, Harmonizing with the Rest of the World is the Answer, Not Repealing Deferral

Unfortunately, as the importance of success in foreign markets has grown, the United States has become less competitive abroad because of its worldwide system of international taxation. - Senators Rob Portman and Charles Schumer on the need to fix our international tax system July 2, 2015 There is w…

ACT Tax Facts: Whether it's the Effective Rate or the Statutory Rate, U.S. Businesses Face an Uncompetitive Tax Rate

It is a simple, well-known fact: The 35-percent U.S. corporate tax rate is the highest in the developed world and, adding in state taxes, is 14.7 percentage points above the unweighted average of the other 34 OECD member countries, including Japan, the UK, France, Germany, and Canada. A lesser known…

ACT Tax Facts: U.S. avoided having world's highest corporate tax rate in 2015, thanks to Guyana

U.S. had the second highest corporate tax rate in the world in 2015 Among its peer group of 34 advanced economies that are members of the Organization for Economic Cooperation and Development (OECD), it is frequently mentioned that the U.S. combined federal and state statutory corporate tax rate of …

ACT Tax Facts: Busting the Top 6 Corporate Tax Myths of 2015

The Alliance for Competitive Taxation's 2016 resolution is to set the record straight about the U.S. corporate tax system. MYTH 1. Corporations have more than $2 trillion in untaxed profits sitting offshore. To succeed in foreign markets, U.S. companies frequently need local operations for product d…

ACT Tax Facts: The U.S. Has a High Effective Corporate Income Tax Rate

Economists and policymakers have long agreed that the United States has a high statutory corporate income tax rate. At 39.1 percent when state and local taxes are included, it's the highest in the developed world and a significant impediment to attracting businesses and economic growth to our shores…

ACT Tax Facts: By Standing Still on Taxes, the U.S. Has Fallen Behind the Rest of the World

We all have seen the chart where we used to have the lowest corporate tax rate in the world and now we have the highest. By standing still we have fallen behind. And everybody says, quite rightly, why the heck are we in that position?‚ Martin A. Sullivan, Tax Analysts, Speaking on January 29, 2014 a…

Back to top