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Diane Publishing Books
International Corporate Tax Rate Comparisons and Policy Implications
Jane G. Gravelle (au)
Advocates of cutting corporate tax rates frequently make their argument based on the higher statutory rate in the U.S. as compared with the rest of the world; they argue that cutting corporate taxes would induce large investment flows into the U.S., which would create jobs or expand the taxable income base enough to raise revenue. President Barack Obama has supported a rate cut if the revenue loss can be offset with corporate base broadening. Others have urged on one hand, a revenue raising reform, and, on the other, setting deficit concerns aside. This report focuses on the global issues relating to tax rate differentials between the U.S. and other countries. It provides tax rate comparisons; discusses policy implications, including the effect of a corporate rate cut on revenue, output, and national welfare; and discusses the outlook for and consequences of a revenue neutral corporate tax reform. Figures and tables. This is a print on demand report.
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