Global Corporate and Personal Income Taxes Around The World.
The United States and Other Developed Nations
The vast majority of developed nations have higher then average tax rates. The United States has a corporate tax rate of 40%, and an average individual tax rate of 39.6%. How does this compare to the average? Well, if you are considering the entire world, US Corporations pay 12.5% more taxes then other countries, and a little more then other developed nations. Individual tax rates on the other hand are widely different. Whereas the world average is 46.6% and the majority of developed countries are paying in the low 40’s, the United States is 39.6%.
How The United States Compares to Developing Countries
Compared to developing countries, both our corporate and individual tax are on the average higher. This makes sense; give the kinds of services we provide. It should also not be understated how little corruption and bribing is required within the United States and most of Europe. Whereas we take this for a given, things like daily bribes dramatically decreases the efficiency of an economy and takes much more out of people’s pocket then a few percentage points worth of tax.
A Final Look at These Numbers
The last thing to consider is how efficient our tax code is. One reason why taxes are so high in the United States at least is because of the incredible number of exemptions that exist for companies and people in the tax code. While this makes sense for people, it makes less sense for companies and results in some of the biggest companies paying well below 40%.