The US tax code is falling behind its international peers and now has the third worst tax code in the developed world according a new report from the nonpartisan think tank Tax Foundation. Tax Foundation's report, which was released Monday morning, found 31 0f the 34 developed countries in the Organisation for Economic Co-operation and Development have a better tax code than the US. Only France and Portugal ranked lower, the report said. Here is the full list showing all of the countries that rank above the US. 1. Estonia 2. New Zealand 3. Switzerland4. Sweden 5. Australia 6. Luxembourg 7. Netherlands 8. Slovak Republic 9. Turkey 10. Slovenia 11. Finland 12. Austria 13. Korea 14. Norway 15. Ireland 16. Czech Republic 17. Denmark 18. Hungary 19. Mexico 20. Germany 21. United Kingdom 22. Belgium 23. Iceland 24. Canada 25. Japan 26. Poland 27. Greece 28. Israel 29. Chile 30. Spain 31. Italy 32. United States 33. Portugal 34. France Tax Foundation attributed America's poor ranking to a high corporate taxe rate. "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. "Its poorly structured property, individual, and capital gains and dividends taxes also contribute to the low ranking." At the other end of the list were Estonia, which ranked first, followed by New Zealand and Switzerland. The Tax Foundation praised Estonia for "having the most competitive tax system in the developed world" and a "relatively low" 21% taxation rate for corporations and individuals. The Tax Foundation, which has been accused by some groups of having a conservative bent, argued its findings should prompt the US and other countries into reforming their tax codes to be more like those its report identified as leaders on the issue. "No longer can a country tax business investment and activity at a high rate without adversely affecting its economic performance," a co-author of the report, Kyle Pomerleau, said in a statement. "In recent years, many countries have recognized this fact and have moved to reform their tax codes to be more competitive. However, others have failed to do so and are falling behind the global movement." The report comes as the debate over corporate inversions heats up in US politics. Major companies, most recently Burger King, have shifted their headquarters overseas in order to avoid US tax rates. View the full report below. Join the conversation about this story »
 |
| READ THE ORIGINAL POST AT www.businessinsider.com |
