The United States is set to overtake Japan and claim the title as having the world's highest corporate tax rate at 35 percent, according to the New York Times.
Fortunately for corporate America, there are plenty of loopholes and breaks to lower their tax burdens.
Japan currently leads the world at 39.5 percent, although the government there plans to lower that rate.
The U.S. tax rate is triple that of Ireland and head and shoulders above Denmark, Austria and China, although tax breaks put the figure closer to other industrialized countries.
A Government Accountability Office study in 2008 finds that 55 percent of United States companies paid no federal income taxes during at least one year in a seven-year period under analysis, the newspaper adds.
|President Barack Obama
(Getty Images photo)
Thus, the United States isn't only home to the highest corporate tax rates, but also, to home to American multinationals that are "world leaders in tax avoidance," says Edward D. Kleinbard, a professor at the University of Southern California and former head of a Congressional joint committee on taxes.
Corporate taxes made up 9 percent of all federal revenue in 2010, a figure that could rise if the Obama administration gets its way.
The White House wants to force more businesses to pay the corporate income tax, an industry group says.
The National Association of Publicly Traded Partnerships says entities with more than $50 million in gross receipts would pay the corporate income tax, instead of the individual income tax they now pay.
"Treasury Department staff are working on a tax reform proposal that reportedly would include corporate taxation of any pass-through entity with gross receipts of $50 million or more," says the association's executive director Mary Lyman, according to Reuters.
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