The US corporate tax code is ridiculous

[Toro]

America ranks 69th in the world in tax complexity.

The Paying Taxes 2012 study, produced by the World Bank, International Finance Corp. and PricewaterhouseCoopers, ranks countries based on the ease or difficulty of paying business taxes. The Maldives came in first, followed by Qatar and Hong Kong. America clocks in at 69 out of 183 countries, down one spot from last year and 23 places shy of its finish in 2009. ...

The authors note that many countries have cut tax rates for businesses in recent years—an average of 8.5 percentage points since 2006. Three of the top five economies in the table—Hong Kong, Singapore and Ireland—offer businesses generally flat profit taxes. America is behind the curve. Its total tax rate of 46.7% (factoring in Social Security and other taxes on top of the 35% rate on corporate income) places the U.S. at an abysmal 131 in the tax-rate ranking, behind the likes of the U.K., Finland, Norway, Switzerland and Ghana.

The biggest changes in the rankings come from steps to streamline taxation. ...

America's decline in the rankings is attributable to tax-policy stagnation as other countries reform their own revenue codes. Already a notably complex system with the second-highest corporate tax rate in the world after Japan, the U.S. tax code appears ever more cumbersome compared to countries that grow simpler and cheaper by the year. ...

Washington can't afford to ignore these trends. "As allocation of capital becomes more sophisticated, understanding the tax situation is increasingly important" to businesses deciding where to invest, says Andrew Packman, a U.K.-based tax partner at Pricewaterhouse. The Paying Taxes survey is a reminder that behind all the Washington talk about "revenue raising" are policy decisions that will affect American growth and jobs.

Review & Outlook: America the Difficult - WSJ.com

 

[william the wie]

Three hours for a reply? That's odd.

 

[Wiseacre]

It is ridiculous, didn't the repubs try to include a reform of the corporate tax code as part of the deal they offered in the supercommittee? Beats me all to hell why both sides can't get rid of the tax breaks and loopholes and cut the rates down enough to be competitive with the rest of the world. Hard to understand why any pol who does that wouldn't be looked on favorably by most voters.