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. Switzerland
4. 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.
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