One month from today, when Japan lowers its corporate tax rate to 35 percent from 39.5 percent, that sucking sound you hear will be the contents of American nest eggs being pulled overseas, says John Kartch, a spokesman for Americans for Tax Reform.
For on that day, the United States will own the "dubious distinction of possessing the highest corporate tax rate" in the developed world. And even President Obama's February proposal to lower the U.S. corporate tax rate to roughly 32 percent from the current 39.2 percent won't help much, says Americans for Tax Reform, which opposes all tax increases.
All of the country's six major trading partners--Canada, the United Kingdom, Mexico, Japan, France, and Germany--have lower rates, a huge obstacle for the U.S. as it struggles to keep companies from establishing businesses abroad. [GOP Candidates Could All Add to Federal Debt.]
"Capital and jobs will continue to flow overseas, rather than staying here to create jobs, increase wages, fund pensions, invest in new business, or grow nest eggs," says John Kartch, a spokesman for The Americans for Tax Reform.