by The effective corporate tax rate plummets in the wake of Trump tax cuts.US corporates are delivering strong profits and this robust profit picture is further enhanced by a sharp drop in the corporate tax burden.According to NIPA (national accounts) data, the effective tax rate for the year ending in Q3 2018 reached a new low of 11.9%.President Trump’s December 2017 tax cuts led to a lower federal statutory tax rate of 21% (from 35% prior), but firms still have several options to bring down the effective rate further, as this data shows.Not all taxes are going down. In fact the newly-introduced tariffs on Chinese imports are de facto a new tax on the US consumer.Read full report here
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The effective corporate tax rate plummets in the wake of Trump tax cuts.
US corporates are delivering strong profits and this robust profit picture is further enhanced by a sharp drop in the corporate tax burden.
According to NIPA (national accounts) data, the effective tax rate for the year ending in Q3 2018 reached a new low of 11.9%.
President Trump’s December 2017 tax cuts led to a lower federal statutory tax rate of 21% (from 35% prior), but firms still have several options to bring down the effective rate further, as this data shows.
Not all taxes are going down. In fact the newly-introduced tariffs on Chinese imports are de facto a new tax on the US consumer.
