from Kevin Williamson at National Review, The U.S. Is Not the Highest-Taxed Nation in the World
We do have an extraordinarily high top corporate-tax rate — on paper, anyway. Our statutory top corporate rate is among the highest in the world, but the corporate tax code is a welfare program. You know how basically every president at every State of the Union address announces a special plan to encourage U.S. manufacturing or green energy or something like that? Those end up as exemptions and deductions in the corporate tax code, which, along with other tax-code favoritism, is why companies such as General Electric sometimes pay no taxes even in years in which they seem to be making a great deal of money. The effective corporate tax rate — what corporations actually pay — in the United States is not especially high, and it’s low if you have the right friends in Washington. The fact that corporate taxes vary so much from company to company and industry to industry is not an accident — the code is designed that way on purpose. It gives big powerful market incumbents a way to disadvantage potential competitors while giving power-brokers in Washington the power to make or break entire industries.
We conflate statutory tax rate with actual- those rates after deductions,credit, and loopholes you obtain through lobbying and political connections. The greater this difference the greater the government is influencing and polluting market decisions.