It’s not the only reason. Certainly, cheap labor and trade deals that favor foreign countries at the expense of the US are other factors. But the United States for some time now has been the highest corporate taxer in the world. And I don’t mean by a little bit but by a lot. American corporate taxes are double the worldwide average.
Every time the subject of reducing the corporate tax is brought up Liberal/Left Democrats holler and scream that this is a tax cut for the rich, that it favors the top 1%, and that we already have enough income inequality without adding to it. But their class warfare economics cannot see that they are punishing the job creators who are taking their companies and the jobs elsewhere because they are being punished.
GOP presidential nominee Donald Trump has talked about the need to lower the corporate tax rate, and this map posted by the Tax Foundation showing corporate tax rates around the world bolsters his position.
The Daily Caller reported:
“The Tax Foundation mapped out the variations in corporate tax rates across the globe, and the results are incredibly interesting.
The United States has the third highest corporate income tax rate in top 35 industrialized nations, according to the Organization for Economic Co-operation and Development (OECD).
The U.S. corporate tax rate is “16.4 percentage points higher than the worldwide average of 22.5 percent and a little more than 9 percentage points higher than the worldwide GDP-weighted average of 29.5 percent,” according to the Tax Foundation.
In fact, the average global tax rate has been declining over the past decade, furthering the divide between the United States and many other nations. Some 75 other nations have corporate tax rates that fall between zero and 20 percent.”
As The Daily Caller pointed out, such a high corporate tax rate encourages businesses to move overseas, and makes it extremely difficult for the United States to be competitive.
Numerous companies have already done so, with 700 U.S. companies currently overseas in Ireland taking advantage of the tax climate there, including Intel, Boston Scientific, Dell, Pfizer, Google, Hewlett Packard, Facebook, and Johnson & Johnson — according to The Guardian.
The Daily Caller reported that the auto industry is following suit by shifting their operations to Mexico, which is something Trump has spoken frequently about on the campaign trail.
The U.S. economy is struggling, yet Obama cites unemployment statistics that fail to take into account those that have dropped out of the labor force unable to find employment, record low GDP growth under his administration, increasing numbers of people on government assistance, etc.
Obama and the Democrats may think everything is just fine because for them — but the rest of us know it isn’t, and that we need leadership that knows it too.
This map proves that something needs to be done to make sure America can be competitive and bring good paying jobs back to the United States — which is something Trump has shown he understands, and Democrat nominee Hillary Clinton clearly doesn’t.