Maggie Wilderotter, "US has the highest corporate tax rate!"

What' Wilderotter talking about. Is there ANY truth in her assertion? I know she's ignoring the effective tax rate and is only talking about the nominative rate. Still, is our nominative rate the worst in the world? The Commonwealth Club of California posted "Sustaining Capitalism: Bipartisan Solutions to Restore Trust and Prosperity," May 15, 2015 on their youtube channel, an interview of top executives from the Commission for Economic Development, Lenny Mendonca and Joseph Minarik with Maggi Wilderotter of the Commonwealth Club moderating. Wilderotter’s statement is at minute 23:51. Corporate tax discussion roughly begins at minute 21:56 Thanks!

Official response from submitted

Any economist interested genuinely in understanding and comparing national corporate tax rates knows that what matters is the effective rate not the nominal rate. Repeated references to the latter are thus usually ideologically motivated rhetoric rather than analysis. Even comparing nominal rates has its pitfalls that make glib usages of the numbers highly likely to be misleading. In short, the US does NOT have unusually high effective corporate tax rates. The US does have a highly evolved PR industry serving corporate clients by "creative" abuse of statistics in the interest of reducing taxes in every way it can.

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  • Richard Wolff
    responded with submitted 2017-05-17 14:42:08 -0400
  • Leonardo Legorreta
    published this page in Ask Prof. Wolff 2017-05-15 20:44:30 -0400