The global economy is on a tax-cutting binge. According to a recent study by the United Nations, more than 20 countries reduced their corporate income tax rates in 2005, in an effort to attract a larger share of nearly $650 billion in foreign direct investment. Only three nations -- Germany, India, and Vietnam -- raised them, and in the U.S., rates stayed steady at about 32%.

Corporate tax rates:

Country 2004 Rate 2005 Rate
Mexico 33% 30%
Barbados 33% 30%
Uruguay 35% 30%
Germany 38.29% 38.31%
Denmark 30% 28%
Austria 34% 25%
Romania 25% 16%
Israel 36% 34%
India 35.88% 36.59%
Japan 42.05% 40.69%
Vietnam 26% 28%
Singapore 22% 20%

Source: UNCTAD