Financial Briefs

More Articles  Printer Friendly Version

 

New Study Says U.S. Tax System Is Among Worst In The World

How does the U.S. tax system compare to other tax systems around the globe? Well, not very favorably, according to a new study from the Tax Foundation. The 2015 International Tax Competitiveness Index (ITCI) puts the United States in 32nd place among 34 countries in the OECD (Organization for Economic Cooperation and Development) when it comes to a competitive tax environment.

The ITCI measures the degree to which the tax systems in the OECD countries promote competitiveness through low tax burdens on business investment and neutrality through a well-structured tax code. The measurement is based on more than 40 variables in five categories: corporate taxes, consumption taxes, property taxes, individual taxes, and international tax rules.

The Tax Foundation says the U.S. is lagging behind because of three main factors:

  1. It is one of six countries in the OECD that don't have territorial tax systems.
  2. It maintains the highest corporate income tax rate in the industrialized world at 39 percent.
  3. It has a poorly structured individual income tax system, with relatively high rates, that taxes both dividends and capital gains.

Italy and France both finished behind the U.S., while Estonia, New Zealand, and Switzerland have the world's most competitive tax systems.

But regardless of what you, or the Tax Foundation, think of the U.S. system, taxes remain a prime consideration in your financial decisions.


Email this article to a friend


Index
It's Hard To Beat The Annual Gift Tax Exclusion For Ease
"New and Improved" QSBS Tax Break
If Estate Tax Repeal Is Enacted Soon, Will It Stick?
Avoid This Installment Sale Trap
Tax Reform Outlook: Cloudy, With A Chance Of A Law
Federal Estate Tax Reduced, But What About State Taxes?
Convert To A Roth IRA Now To Avoid Higher Taxes Later?
Using RMDs To Buy Life Insurance
New Opportunity For Stand-Alone HRAs
5 'Other' Retirement Saving Ideas
Tax Rules For Collectible Donations
What Are The Main Items On Trump's Tax Reform Agenda?
Bull Or Bear Market? Plan Both Ways
Pay The Toll On Roth Conversion?
Giving Stock To Your Kids An Easy, Tax-Efficient Way

This article was written by a professional financial journalist for Investment Advisory Group, LLC and is not intended as legal or investment advice.

©2018 Advisor Products Inc. All Rights Reserved.