by Jim Saxton
Joint Economic Committee, United States Congress
August 17, 2004
Discussion of taxes should always keep in mind that a free country with an open economy always faces competition from other countries. This report compares major taxes in the U.S. with taxes in a peer group consisting of the world's eight other largest advanced economies: Australia, Canada, France, Germany, Italy, Japan, Spain, and the United Kingdom. The report also shows U.S. tax rates in 2000, to show how the U.S. would have compared had the tax cuts of the last few years not been enacted. The effect of the tax cuts has been to improve the competitive position of the U.S. However, the U.S. still lags behind in certain aspects of taxation to its peers among the large advanced economies.