Will McBride Explains America’s Shrinking Corporate Sector

The U.S. loses about 60,000 corporations per year and has lost about 1 million corporations since the Tax Reform Act of 1986.

Over time, more businesses have structured themselves as "pass-through" entities. This allows profits to be passed through to owners and taxed at individual tax rates that are often lower than the corporate tax rate and eliminates double taxation for shareholders.

More than 60 percent of U.S. business profits are now taxed under the individual income tax code rather than the corporate tax code, which explains why the U.S. collects a relatively small amount of tax revenue from corporations despite having the developed world’s highest corporate tax rate.

Outside of taxation, the traditional corporate form often provides the most efficient business structure for large-scale projects and investments. Excessive corporate taxation and the subsequent decline of the corporate sector artificially limits this important aspect of the economy.

The U.S. should do what the rest of the developed world has done: reduce the corporate tax rate, integrate the corporate and shareholder taxes to avoid double taxation, and limit corporate taxation to profits earned domestically.

Read more here:
http://taxfoundation.org/article/america-s-shrinking-corporate-sector

Category: News & Politics
Uploaded by: TaxFoundation
Hosted: youtube

Congressman Pat Tiberi Discusses Pass-through Businesses and Tax Reform

Pat Tiberi is the U.S. Representative for Ohio’s 12th congressional district, serving since 2001. He is a member of the Republican Party. He previously served in the Ohio House of Representatives. Here, he discusses pass-through businesses and their treatment in the U.S. tax code.

Pass-through businesses play a significant role in the United States economy. They account for 95 percent of all businesses, more than 60 percent of all business income, and more than 50 percent of all employment.

However, much of the attention on tax reform focuses on the corporate tax code. It’s crucial, though, that any tax reform proposal needs to go beyond just the corporate code and reform the individual tax code to help grow all of America’s businesses.

Category: News & Politics
Uploaded by: TaxFoundation
Hosted: youtube

Pass-through Businesses and Comprehensive Tax Reform: Designing Tax Reform to Grow All U.S. Business

Pass-through businesses play a significant role in the United States economy. They account for 95 percent of all businesses, more than 60 percent of all business income, and more than 50 percent of all employment.
However, much of the attention on tax reform focuses on the corporate tax code. It’s crucial, though, that any tax reform proposal needs to go beyond just the corporate code and reform the individual tax code to help grow all of America’s businesses.

Category: News & Politics
Uploaded by: TaxFoundation
Hosted: youtube

America’s Shrinking Corporate Sector

Fox & Friends covers the latest Tax Foundation report which describes how the US corporate tax code is contributing to the decline of the US corporate sector.

Full Text:
American corporations are shutting down at alarming numbers and taxes are to blame. According to a new report from the Tax Foundation, 1 million corporations have closed their doors since the height of the Reagan era: a whopping 60,000 per year. The rising corporate tax rates is causing companies to have to restructure to be taxed at lower rates and without a corporate tax base that burden is shifted to individual Americans.

Category: News & Politics
Uploaded by: TaxFoundation
Hosted: youtube

Economist Kyle Pomerleau discusses 2014 International Tax Competitiveness Index

Today, the Tax Foundation released its first annual International Tax Competitiveness Index that attempts to determine which countries provide the best tax environment for investment and business growth and development. It does this by measuring the competitiveness of tax systems in the OECD’s 34 countries based on over 40 tax policy variables in five categories: corporate income taxes, individual taxes, consumption taxes, property taxes, and the treatment of foreign earnings.

The United States has the 3rd least competitive tax code in the OECD, trailed only by Portugal and France. Estonia, New Zealand, and Switzerland have the most competitive tax codes among developed nations.

Category: News & Politics
Uploaded by: TaxFoundation
Hosted: youtube

What are tax expenditures?

Tax Foundation Economist Will McBride, PhD, and Fellow Michael Schuyler explain tax expenditures and the importance of saving and investment.

Category: News & Politics
Uploaded by: TaxFoundation
Hosted: youtube

What are Capital Gains Taxes?

Tax Foundation President Scott Hodge and Economist Kyle Pomerleau explain the ins and outs of capital gains taxes in the United States.

Questions answered in the video:
- What are capital gains?
- What are capital gains taxes?
- How does the US treat capital gains differently than its competitors?
- How do taxes on capital gains impact the economy?
- Are taxes on capital gains smart tax policy?

Visit us at www.taxfoundation.org
Follow us on Twitter @TaxFoundation.

Category: News & Politics
Uploaded by: TaxFoundation
Hosted: youtube