Despite White House claims to the contrary, the U.S. marginal effective tax rate is the highest among developed countries, say Jack Mintz and Duanjie Chen of the Tax Foundation.
There are two ways to look at the effective corporate tax rate. One way is to measure the marginal effective tax rate (METR) on new investments, while the other looks at the average effective tax rate (AETR).
The METR is a measure of the tax impact on capital investment as a portion of the cost of capital.
Since 2007, the United States has had the highest METR in the Organization for Economic Cooperation and Development.