Efficacy of Corporate Tax Holidays
Meanwhile, John Cassidy makes an important point:
“Several things
should be noted. Firstly, there isn’t much evidence that what has been holding
back corporate investment is high corporate taxes. Because the U.S. tax code is
riddled with loopholes, the tax rate that big businesses actually pay isn’t
anything like thirty-five per cent. Between 2008 and 2012, according to a
recent study by the nonpartisan Government Accountability Office, they paid a
tax rate of about fourteen per cent, on average. Small corporations tend to pay
even less. From 2006 to 2012, two-thirds of all incorporated businesses didn’t
pay anything, the study found.”
GAO Report: Most Large Profitable U.S. Corporations
Paid Tax but Effective Tax Rates Differed Significantly from the Statutory Rate
The House GOP’s Idea for Business Taxes Could Win
Bipartisan Support by Peter Coy