Letters to the Editor

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TAXES: Corporate taxes aren’t highest in U.S.

Letter by Norman E. Wear, Tacoma on Sep. 25, 2012 at 3:38 pm | 31 Comments »
September 26, 2012 10:27 am

Re: “It’s better to donate than be taxed” (letter, 9-22)

Once again, we have Republican apologists throwing out unsubstantiated or incomplete statements, lacking in documentation, in support of Mitt Romney’s nebulous fiscal “plan.”

In an attempt to justify Republican policy, the writer states that “the United States pays the highest corporate taxes in the world.” This is patently false.

According to The Washington Post (9-20) the U.S. corporate rate is, on paper, higher than any other developed country. But that is as far as it goes. Actual revenues paid in by corporations has continued to shrink since the 1950s, now accounting for only 9 percent of federal Treasury income. One can hardly claim that corporations are overtaxed. Most federal tax revenue comes from individual income taxes and payroll taxes.

And according to CNN Money (3-27), the effective U.S. corporate tax rate is 29.2 percent, compared to the 31.9 percent average for developed economies.

So it would appear that high corporate taxation is not really a justification for unemployment and stagnation, and not an effective argument for returning to the disastrous fiscal policies of the Republicans.

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