U.S. corporations not overtaxed

The Editorial Page of the June 10 Southeast Missourian carried an article titled "Want more jobs? The ideas are out there." This piece stated that the U.S. corporate tax rate of 34 percent is higher than the average 27 percent rate for other rich countries. It argued the United States should reduce its tax rate to 25 percent so our corporations can be competitive. However, it did not discuss in any form the tax credits or deductions which benefit corporations in the United States.

Bruce Bartlett, who has served as an economic adviser to the White House, the Treasury Department and Congress, wrote in a May 31 column for The New York Times that, "The United States actually has the lowest corporate tax burden of any of the member nations of the Organization for Economic Cooperation and Development.

In support of this point he called attention to a list which shows corporate tax income as a percentage of gross domestic product (GDP):

Norway, 12.5; Switzerland, 3.3; Australia, 5.9; Netherlands, 3.2; Czech Republic, 4.2; Sweden, 3.0; South Korea, 4.2; France, 2.9; Japan, 3.9; Ireland, 2.8; Italy, 3.7; Spain, 2.8; Portugal, 3.6; Poland, 2.7; Britain, 3.6; Hungary, 2.6; Finland, 3.5; Austria, 2.5; Israel, 3.5; Greece, 2.5; Denmark, 3.4; Germany, 1.9; Belgium, 3.3; Iceland, 1.9; Canada, 3.3; United States, 1.8.

From these numbers, it is obvious that U.S. corporations are not overtaxed and that tax credits and deductions need to be a part of any discussion about changing tax rates.

JOHN PIEPHO, Cape Girardeau