the very same yahoo finance article he links to:
But despite the headline number, the statutory rate only tells part of the story.I know Greg Mankiw knows that. The headline marginal tax rates do matter, because they effect incentives, but his selective quote creates the false impression that the US corporations face an unusually large tax burden, when, by many measures, the effective corporate tax rate in the US is relatively low.
Loopholes and other special treatment for different kinds of businesses mean that businesses pay an effective rate of only 29.2% of their income, which puts the United States below the average of 31.9% among other major economies, according to analysis by the Treasury Department.
And the Organization for Economic Cooperation and Development, the multinational group that tracks global economic growth, estimates the United States collects less corporate tax relative to the overall economy than almost any other country in the world.
Here's another way to slice it - the share of corporate "operating surplus" paid in taxes - calculated by the US Treasury, via this CBPP report:
this NY Times story is informative about some of the issues.
I'm a fan of much of Greg Mankiw's work and responsible for quite a few sales of his Intermediate Macroeconomics textbook. I know he knows better - and would probably do an excellent job if he attempted an honest explanation of the issues associated with the US corporate tax code, and how it compares internationally. Sigh.