The US ranks 10th in the international economic freedom rankings. And where we were recently 3rd, we are headed in the wrong direction — we are soon to be between 15th to 20th.
Economic freedom rates the size of government, regulation, sound money practices, free trade and the rule of law.
While the US should strive to be #1, we are headed the wrong direction. Tax policy is a key component.
While Texas has worked to be the to job-creation state, the US should be following Texas’ lead.
Even Canada has a more business-friendly corporate tax policy than the United States. By law, Canadian businesses are required to pay 27% of their income to their provincial and federal governments, whereas in the United States, businesses are required to pay 35% of their income to the federal government. When you also include state corporate taxes, U.S. businesses are legally required to pay corporate taxes in excess of 40% (before credits and deductions). No other country in the world has such a high corporate tax rate.