Have you tried running a business in the USA. The U.S. federal effective corporate tax rate has become much lower than the nominal rate because of tax such as tax havens.
The United States first introduced the corporate tax in the year 1894
-
The corporate tax was reintroduced in the year 1913. However, this time the legislators were careful. Hence, they kept the tax rate abysmally low at 1%. This continued for some time. However, the government slowly started raising tax rates over time. Within a decade, the tax rate has grown to 15%! This was commendable given the fact that the American public has generally been averse to any form of taxation.
-
The corporate tax rate in America saw a major jump during the World War 2 period. During this period, the tax rates rose sharply and remained high till the 1960s. This was a period when national security was a priority for the American government. Hence, people agreed to higher rates of taxation. During this period, corporate taxes were the single highest contributor to the American budget. Corporate taxes contributed close to 20% of the total revenue of the United States government. This is the period when the American tax rate had peaked. The tax rate was highest in 1968 when it was over 50%!
(Comparing modern rates to 1903 and calling it the lowest is factually sound but a bit misleading.) * The corporate taxes in developed nations was then reduced. For the most part, America was charging tax rates between 30% and 40%. This was also the case with all other developed western economies. In fact, the tax history of most developed western economies is remarkably similar. They were generally charging taxes between 30% and 45%. Germany was the only other developed western nation where the peak tax rate for corporations was below 40%. Till 2018, the total corporate tax collected in America had reduced to 9.9% of the total revenues and accounted for 2.2% of the gross domestic product.
- Meanwhile, other developing nations, where countries were choosing to relocate, had tax rates that were closer to 20%. This is the reason that Trump had decided to lower the tax rate in order to make America competitive. The above-mentioned history clearly shows that America has been steadily moving towards socialism in the past few years. This is the reason why corporations are handing over higher proportions of their hard-earned money to the government.
History of Corporate Taxation
https://www.managementstudyguide.com/history-of-corporate-taxation.htm
The best way to have a free market is to escape to a free country. America is not FREE.