Contrary to popular belief, the average corporate income tax rate in the U.S is actually higher than many other developed economies. Some economists and media pundits have suggested that the Federal government should reduce this tax rate to stimulate investment and job growth.

The average corporate income tax rate in the U.S. is 35% compared to just 23% in the EU. The rate is even lower some countries of the EU as the graphic shows below:

Source: The Wall Street Journal

Ireland has the lowest rate at 12.5% in the EU except for Cyprus and Bulgaria. Ireland’s very low corporate tax rate attracted many multinationals to invest there leading to tremendous growth of the economy before the downturn.