View the AEI Report Card by Kevin Hassett and Aparna Mathur here.

This report’s key findings include,:

  • Effective corporate tax rates are a better measure of competitiveness than statutory rates. Even by this measure, the United States does much worse than the other OECD countries.
  • Corporate tax revenue in the United States is consistently lower than revenues in other OECD countries, despite higher US corporate tax rates.
  • To bring investment and jobs back to the United States, policymakers should cut effective tax rates as part of an overhaul of the US corporate tax code.

Overall, the study finds, “While there is broad consensus that the high statutory corporate tax rate in the United States makes investments here uncompetitive relative to those in other OECD economies, some question the extent to which effective taxes paid by corporations are equally high. This Outlook examines relative tax rates in the United States and OECD economies, with a special focus on effective average and effective marginal tax rates. Unfortunately, even by these indicators, the United States competes poorly in the global economy.”