Graphic of the Day: Corporate Tax rates over the last 14 years.
Here is the Full Report from KPMG
Their findings reveal that coutries with low tax rates benefit directly through increased FDI e.g. Ireland. Scandinavian coutries have also made substantial progress. Here is the bad news: my beloved land of Germany is the highest taxed EU country and with the VAT hike at the beginning of 2007 I don't see things improving anytime soon. Throw in a propensity to save (savings rate of 14% compared to ~-1% in USA) and you've got a bleak outlook. I still have hope however. Here are some positive factors:
1. Privatization of higher education (also the recent establishment of "Elite" Universities).
2. German companies will benefit more than any other european country from globalization.
3. Reforms in Health Care and social security are on the horizon.
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An Update to this posting: I just heard a report on the morning news here in Germany that the Grand Coalition (Germany's current ruling parties) are in talks to lower corporate taxes. Not Sure if anything will come of this (after all we are talking about politicians) but it can't hurt.
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