Corproate Taxes Being Lowered Worldwide
September 23, 2016 International Tax Cooperation
Governments of major economic powers around the world are beginning to lower their corporate tax rates for the first time since the Global Financial Crisis in 2008, according to information contained in a new report released recently by the Organization for Economic Cooperation and Development.
In 2014 the governments of Japan, Spain, Israel, Norway, and Estonia all lowered the rate of taxes on corporate income, while the government of Italy, France and the UK all announced that they would cut corporate income taxes in the foreseeable future.
It is believed that the widespread reduction in corporate tax rates is intended to help boost business activity and economic growth, while also being a tool used by governments to try and attract foreign investment.
It was noted that the reduced corporate income tax rates could signal the beginning of a larger worldwide trend towards “growth” policies revolving around lowered tax burdens on businesses.
It was noted that while corporate income taxes have dropped, the proportionate tax burden faced by individuals via income taxes and consumption taxes has increased, with labour and consumption now providing a greater proportion of all government revenues.