
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
Dec 1, 2005
