United States

United States's Rankings
CategoryRankScore
Overall Rank2163.73
Corporate Taxes2155.06
Individual Taxes2462.87
Consumption Taxes594.2
Property Taxes2949.22
International Tax Rules2861.7

The United States ranks 21st overall on the 2019 International Tax Competitiveness Index, the same as in 2018.


Strengths

  • The U.S. provides full expensing for business investments in machinery.
  • The U.S. allows for Last-In-First-Out treatment of the cost of inventory.
  • Corporations can deduct property taxes when calculating taxable income.

Weaknesses

  • The U.S. has a progressive income tax with a top rate of 46 percent, including payroll and personal income taxes.
  • The U.S. has a partial territorial system and does not exempt foreign capital gains income-it ranks as one of the most onerous international tax systems of any OECD nation.
  • The real property tax burden is among the highest in the OECD.

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