State Policy Network
National Center for Policy Analysis Update: January/February 2016

The latest publication from the National Center for Policy Analysis, The Economic Burden of Corporate Taxation, considers how reducing the corporate income tax would draw capital into the U.S., while increasing wages and production. The U.S. operates in a way that is particularly punishing to corporate investment so savers move capital abroad in response to higher taxes. The study shows that under current tax law the average effective marginal tax rate on capital is about 48 percent and in specific industries exceeds 56 percent. Current corporate tax rates raise the cost of capital, diminish investment, and reduce economic outputs and living standards—while failing to bring in a significant source of revenue. ncpa.org