January 25, 2013

Corporate Tax Rates

Even though corporate foreign profits have skyrocketed over the past three decades, the effective corporate tax rate has shrunken:

“[…]an increasing share of profits is now earned abroad and taxed more lightly than domestic profits, as Edward Kleinbard of the University of Southern California has underscored. Relative to domestic profits, foreign profits have been rising for several decades, and that trend is likely to continue. Globalization is thus reducing the effective corporate-tax rate as the share of profits earned abroad increases.”

Read more at Bloomberg View.