James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Tax Foundation Ranks US Tax Code 31 Out of 34 Developed Nations
Author: James F. McDonough
Date: September 23, 2014
Key Contacts
Back
The Tax Foundation, a think tank that examines issues of public tax policy, released a new report ranking the tax codes of the 34 developed countries in the Organization for Economic Cooperation and Development.
The U.S. was ranked poorly, coming in at number 31 out of 34, according to Business Insider. Estonia, New Zealand and Switzerland came in at Nos. 1, 2 and 3, respectively. Only Portugal and France were ranked below the U.S.
“The United States scores poorly largely because it maintains the highest corporate tax rate in the developed world at 39.1 percent and is one of the six remaining countries in the OECD with a worldwide system of taxation,” the Tax Foundation said, according to the news source. “Its poorly structured property, individual, and capital gains and dividends taxes also contribute to the low ranking.”
Estonia in particular was praised for having “the most competitive” tax code in the developed world, including a 21 percent tax rate for individuals and corporations. The U.S. corporate income tax is 35 percent, a level that has received criticism for being one of the highest in the developed world.
While the Tax Foundation maintains that it is non-partisan, a number of left-leaning figures have alleged that the think tank holds a conservative slant. Notably, Paul Krugman has accused the organization of a pro-business agenda in a piece titled, The Greek menace.
Whether the think tank maintains a slant or not, this recent report highlights the importance of taxation issues in America. Corporate inversions in particular have drawn heavy criticism for taking tax dollars out of the country. As the November elections draw closer, expect to see further rhetoric from all sides.
Interested in reading more about tax codes? Check out tax attorneys, Frank L. Brunetti’s Overhaul of Corporate Tax Code Proposed and Joseph M. Donegan’s Businesses Cite Tax Code Uncertainty as a Critical Problem
- Practices: Tax and Trusts & Estates
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Why Secured Transactions Are Important
Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher
Don’t Cash a “Paid in Full” Check Without Understanding the Legal Implications
Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher
Changes to Qualified Small Business Stock Will Benefit Startup Founders and Investors
The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher
Corporate Consolidation and Antitrust Issues in Mergers
Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
Author: Dan Brecher
What is Business Law and Why Is it Important?
Business law plays a critical role in nearly every aspect of running a successful enterprise, from negotiating a commercial lease to drafting employee policies to fulfilling corporate disclosure obligations. Understanding what is business law and your legal obligations can help your business run smoothly and build productive relationships with clients, business partners, regulators, and others. […]
Author: Dan Brecher
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.