California firms would pay a combined corporate tax rate of 34.4% under Biden plan

(The Center Square) – The combined state and federal corporate tax rate in California would reach 34.4 percent under President Biden’s infrastructure plan, representing a tie for the seventh highest levy among the 50 states, according to a new study from the Tax Foundation.

U.S. corporations currently pay a 21 percent corporate income tax rate to the federal government, the Tax Foundation reported, but they also pay additional corporate taxes in 44 states and Washington, D.C. State corporate income tax rates range from zero to 11.5 percent, so the current combined average paid by corporations is 25.8 percent, the study said.

Corporations based in six states – Ohio, Nevada, South Dakota, Texas, Washington and Wyoming – are charged no state income tax, though they have to pay their share to the federal government, the Tax Foundation said.

Biden’s proposal would place the U.S. combined corporate tax rate at 32.4 percent, which would be the highest rate among the Organisation of Economic Co-operation and Development (OECD). The group includes nations in North America and Europe, as well as Australia and New Zealand.

Such an increase in the U.S. corporate tax rate would be an incentive for companies to leave the U.S. and to cut worker wages and economic production, according to the Tax Foundation.

U.S. companies, however, have the ability to deduct corporate income tax paid to states, which lessens their federal corporate tax rate, the study noted.

Combined Corporate Income Taxes Under Biden Plan

State Combined State, National Corporate Tax Rate Under Biden Plan Rank (Highest to Lowest)
New Jersey 36.3% 1
Pennsylvania 35.2% 2
Iowa 35.1% 3 (tie)
Minnesota 35.1% 3 (tie)
Alaska 34.8% 5 (tie)
Illinois 34.8% 5 (tie)
California 34.4% 7 (tie)
Maine 34.4% 7 (tie)
Delaware 34.3% 9
Vermont 34.1% 10
Maryland 33.9% 11
Massachusetts 33.8% 12
Wisconsin 33.7% 13
Nebraska 33.6% 14
New Hampshire 33.5% 15 (tie)
Oregon 33.5% 15 (tie)
Connecticut 33.4% 17
Idaho 33.0% 18 (tie)
Kansas 33.0% 18 (tie)
Rhode Island 33.0% 20
Montana 32.9% 21
New York 32.7% 22 (tie)
Tennessee 32.7% 22 (tie)
Hawaii 32.6% 24 (tie)
Louisiana 32.6% 24 (tie)
Arkansas 32.5% 26
Michigan 32.3% 27 (tie)
Oklahoma 32.3% 27 (tie)
Virginia 32.3% 27 (tie)
West Virginia 32.3% 27 (tie)
New Mexico 32.2% 31
Georgia 32.1% 32
Indiana 31.8% 33
Alabama 31.7% 34
Kentucky 31.6% 35 (tie)
Mississippi 31.6% 35 (tie)
South Carolina 31.6% 35 (tie)
Utah 31.6% 35 (tie)
Arizona 31.5% 39
Colorado 31.3% 40
Florida 31.2% 41
North Dakota 31.1% 42
Missouri 30.6% 43
North Carolina 29.8% 44
Nevada 28.0% 45 (tie)
Ohio 28.0% 45 (tie)
South Dakota 28.0% 45 (tie)
Texas 28.0% 45 (tie)
Washington 28.0% 45 (tie)
Wyoming 28.0% 45 (tie)

Source: Tax Foundation

Source: 

Visit the The Center Square


Get Citizensjournal.us Headlines free  SUBSCRIPTION. Keep us publishing – DONATE

5 1 vote
Article Rating
Subscribe
Notify of
guest
1 Comment
Newest
Oldest Most Voted
Inline Feedbacks
View all comments
George Pattone

Still happy that Trump is out of office, America???
Happy with the increase in gas prices at the pump???
Things are gonna get a lot worse, but be happy that Twitter is quieter, ok???

Elections (even fraudulent ones) have consequences…