A popular talking point on the left is the “problem” with corporate welfare. It’s only a problem because the left has corporate-phobia. There’s nothing wrong with keeping a watchful eye on corporations, but many on the left think economic growth is bad for mankind. Many times these tax breaks are necessary because the United States taxes corporations higher than most developed nations. If Democrats are serious about eliminating corporate subsidies then we have to tackle our extreme corporate tax rate.
In 2011, national statutory corporate tax rates among the thirty-four members of the OECD will range from 8.5 percent in Switzerland to 35 percent in the United States. When sub-national taxes are added, the United States has the second-highest statutory combined corporate tax rate – 39.2 percent – after Japan’s rate of 39.5 percent.
Despite having a higher tax rate the United States fails to raise as much revenue from corporate taxes as other nations. Our system of corporate taxation is extremely inefficient. The tax code is a mess, but until the nation elects real leadership this and countless other economic issues will be ignored and exploited.
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