US taxes are low relative to those in other high-income countries (figure 1). In 2018, taxes at all levels of US government represented 24 percent of gross domestic product (GDP), compared with an average of 34 percent for the other 35 member countries of the Organisation for Economic Co-operation and Development (OECD).
Among OECD countries, only Chile, Ireland, and Mexico collected less tax revenue than the United States as a percentage of GDP. Taxes exceeded 40 percent of GDP in seven European countries, including France, where taxes were 46 percent of GDP. But those countries generally provide more extensive government services than the United States does.
How do US taxes compare internationally?
Also the corporate tax rate yes, but raising it from 21 to 28% isnt humongous considering it was 35% just 3 yrs ago and they don't pay that while most huge corporations pay less than you or pay 0.
- The worldwide average statutory corporate income tax rate, measured across 177 jurisdictions, is 23.85 percent. When weighted by GDP, the average statutory rate is 25.85 percent.
- Europe has the lowest regional average rate, at 19.99 percent (24.61 percent when weighted by GDP). Conversely, Africa has the highest regional average statutory rate, at 28.50 percent (28.16 percent weighted by GDP).
- The average top corporate rate among EU27 countries is 21.47 percent, 23.51 percent in OECD countries, and 24 percent in the G7.
Corporate Tax Rates Around the World
The Real Tax Bill
The Institute on Taxation and Economic Policy (ITEP) found in a 2017 report that over the eight-year period from 2008 to 2015, 258 profitable
Fortune 500 companies paid an average effective federal income tax rate of 21.2%—while the federal tax rate was 35% for all those years.2
Now that the corporate tax rate is reduced to 21%, corporations have found a way to pay even less. The ITEP published an updated report on corporate taxes in December 2019. Per their findings, 379 companies paid an average tax rate of 11% for the tax year.3
Ninety-one of those companies, including DowDuPont and Avis Budget Group no federal income tax in 2018. Tax subsidies for the 379 companies totaled $73.9 billion, with Bank of America receiving the largest amount of subsidies at $5.5 billion.
How Fortune 500 Companies Avoid Paying Income Tax
And no the money saved doesn't go to jobs or employee wages
Did Trump's tax cuts boost hiring? Most companies say no
But, says Michael Patcher, an analyst at Wedbush Securities, “The tax law didn’t do anything to provide an incentive to employers to create jobs. There’s nothing in there that would suggest that employers have a particular incentive to hire more people or pay the ones that they have more money.”
Apple, as usual, is leading the pack with a
record-breaking $100 billion stock buyback. That’s a huge chunk of the $252 billion in foreign profits that it brought back to the U.S. because of Trump’s tax bill.
Here are some of the biggest stock buyback announcements so far in 2018, according to
Kiplinger.
- Apple – $100 billion
- Cisco – $25 billion
- Wells Fargo – $22.6 billion
- Pepsi – $15 billion
- AbbVie – $10 billion
- Amgen – $10 billion
- Google parent Alphabet – $8.6 billion
- Visa – $7.5 billion
- eBay – $6 billion
Here's How America's Biggest Companies Are Spending Their Trump Tax Cuts (It's Not on New Jobs)
Tax cut scoreboard: Workers $6 billion; Shareholders: $171 billion
