re: #116 Obdicut

And maybe you missed this whole chunk:

Europe vs. the United States: When it comes to corporate tax competition,
Europe is far more competitive than the United States, with rates in the
United States that are 68 percent higher than in the EU-15 and 185 percent
higher than in the EU-10. Most EU-10 nations have made a conscious choice
to keep effective corporate tax rates low in order to be a more attractive
location for internationally mobile business investment. Some have done
this with generous incentives, including R&D tax credits36, while others
have lowered statutory rates. However, effective tax rates differ significantly
throughout Europe, with Ireland, Spain, and Sweden having relatively low
effective rates, and Germany having higher rates.
Given that government expenditures as a share of GDP are higher in Europe,
Europe’s lower corporate rates may come as a surprise. However, one
reason that Europe is able to afford lower corporate rates, despite having
higher government spending, is that it raises a significant share of revenues
from border adjustable value-added taxes. Because these are levied on
imports but exempted on exports, the European tax system gives companies
located inside Europe’s borders a double advantage in international
markets—lower corporate rates and value-added taxes levied on imports.
Europe and the United States vs. the Rest of the World: When it comes
to corporate tax competitiveness, the EU-10 as a whole is, with the exception
of Ireland, the most competitive of the nations or regions included here. For
example, Poland’s effective corporate rate is just 12.5 percent, compared
to 32 percent in the United States. In addition, three of the BRICs (Brazil,
Russia, and China) have similarly adopted lower effective corporate rates to
be attractive to FDI. Japan and the United States have the highest rates.