In the given article Right Tax Advisor provides the full state guideline of the Corporate Tax Rates in USA . Producing knowledge on corporate tax rates in USA is important to all businesses, including a startup and multinational company. No matter whether you are a local or a multinational corporation with subsidiaries across all geographical locations, understanding how U.S. corporate tax structure functions is important to enable you to plan effectively and remain in compliance. The tax environment in the United States is evolving following recent tax reforms, which have not only opened up opportunities to businesses in the country but also brought up challenges in 2025.
Overview of Corporate Taxation
In the United States, corporate income is primarily taxed on the federal level, but each state and local jurisdiction has had various tax returns. The rate of federal corporate tax in 2025 is the same as it was in the Tax Cuts and Jobs Act (TCJA) of 21%. Nevertheless, congress is looking into plans, which may modify deductions, credits and international tax regulations, as there are on-going deliberation on competitiveness and revenue.
Corporate Tax Planning and Strategy
Tax planning effectively involves credits, deductions, and other incentives, in particular, innovation, clean energy, and research tax credits. Multinationals are also to be able to negotiate global minimum tax policies and transfer-pricing requirements to fulfill the OECD model. Small and medium-sized companies are to use the services of professional consultants to maximize their tax position in the United States and prevent the appearance of unjustified liabilities.
Overall, being aware of the corporate tax rates in the U.S in 2025 would enable companies to make viable financial choices, minimize risks, and capitalize on the operations amid the future tax system.
Understanding Corporate Taxation in the USA
Corporate tax definition refers to a tax that the government imposes on the profits made by companies. Simply put, an income realized after paying expenses is taxed by the U.S. system when the company makes a profit. The taxation will make sure that corporations will pay a reasonable sum to the national economy and maintain the institutions and infrastructures of the country.
Purpose of Corporate Taxes
Corporate tax is not only to increase revenue. The taxes are used to stabilize the economy and finance key government functions- education, health, defense and transport. Corporate taxes at the federal level constitute a major portion of the revenue on the treasury to regulate national debt and support social welfare programs.
Corporate income taxes are used to finance the development of the region on the state level. They fund local projects, enhance community utilities, and fund job-generating projects. The rates in the country are determined by states, thus resulting in different rates. Indicatively, Texas and Nevada do not collect corporate income tax whereas the rest of the states utilize certain rates to finance community programs and infrastructure.
Simply, corporate taxation maintains stability in the U.S. financial system. Firms also play a reasonable role in national development that enhances the federal and state revenue generation systems and supports sustainable economic development and accountability.
Federal Corporate Tax Rate Overview
The present federal corporate tax rate in the U.S is 21, which was not changed since the Tax Cuts and Jobs Act of 2017. That reform reduced the previous rate of 35 and made U.S. more competitive in the global scene. TCJA had the expectation of boosting investment, job creation, and economy growth by streamlining the tax code and reducing the rates.
Stability and Impact Since TCJA
The 21 percent rate has given long-term planning and financial prediction a stable level. Numerous businesses have superior cash flow, reinvestment and shareholder value. Critics however argue that the lower rate has cut down the federal cash which has led to controversy on whether corporate contributions to national costs are fair.
Possible Reforms and Future Outlook
Congress and policy gurus are still debating possible modifications to corporate tax rates at IRS in 2025. It is suggested that the rate should be increased to 25-28 percent to increase revenue and fund infrastructural and social services. Some say that 21% should be retained to maintain competitiveness and do not allow capital flight.
Overall, the federal corporate tax rate is one of the foundations of the U.S. taxation- it is a harmonization of the economic growth incentives and the financial obligation within the changing political and economic priorities.
State Corporate Tax Rates Comparison
The table below represents a 2025 list of state corporate tax rates, with differences between the states of the United States. Other states are full of zero corporate tax whereas others impose higher rates. The table has identified the low-tax and the high-tax states in the U.S.
| State | Top Corporate Tax Rate / Structure | Notes & Special Cases |
|---|---|---|
| New Jersey | 11.5 % | Highest top rate in the U.S. as of 2025. |
| Minnesota | 9.80 % | Among the few states exceeding 9 %. |
| Illinois | 9.50 % | Combines multiple corporate income taxes. |
| Alaska | 9.40 % | Progressive brackets up to this top rate. |
| California | 8.84 % | Flat corporate rate. |
| Maryland | 8.25 % | Among higher-rate states. |
| Massachusetts | 8.00 % | Flat corporate rate. |
| New York | 7.25 % | Top bracket. |
| Pennsylvania | 7.99 % | Recently reduced rate effective 2025. |
| North Carolina | 2.25 % | One of the lowest among states that tax corporate income. |
| Idaho | 5.30 % | Rate cut from 5.695 % effective 2025. |
| Nebraska | 5.20 % | Flat rate as part of reform. |
| Utah | 4.50 % | Reduced from 4.55% in 2025. |
| Oklahoma | 4.00 % | One of the relatively low-rate states. |
| South Dakota | 0.00 % | No corporate income tax (nor gross receipts tax). |
| Wyoming | 0.00 % | Also imposes no corporate income tax. |
Observations & Insights
- Zero corporate tax states – by 2025, no state levies any corporate income tax, or any gross-receipts tax, and both South Dakota and Wyoming do not levy any corporate or gross-receipts tax.
- States with high taxes -New Jersey has the highest rate at 11.5 percent, then Minnesota and Illinois.
- Low and not zero- There are examples of states (with corporate taxable income) with low, but not zero, corporate tax burden, such as North Carolina (2.25%) and Utah (4.50).
- Recent reforms – Since 2025 In addition to that, some states were adjusted: Idaho reduced its rate; Utah reduced its rate; Nebraska adopted a new flat rate; and Pennsylvania reduced its rate schedule.
- How Corporate Taxes Are Calculated
It is important that every business owner who would like to remain compliant and maximize his tax strategy should know how corporate taxes are computed. The process of calculating business tax that is applied by the IRS calculates the tax that a corporation should pay depending on the taxable income, which is the gross income with certain changes.
Step 1: Determine Gross Revenue
Divide the gross revenue into two parts the first and the second. This comprises of all the earnings of sales, services, investments and any other business activities in the given fiscal year. It is the total inflow of the company without any deductions and expenses.
Step 2: Subtract Allowable Business Deductions
This is followed by deductions of ordinary and necessary expenses. These may be salaries, rent, utilities, professional fees, insurance and marketing expenses. The amount spent on entertainment or fines might have been more deductible by the IRS.
Step 3: Apply Depreciation and Amortization
There is further reduction of taxable income scheme through depreciation and amortization of long-term assets during depreciation of assets such as technology, machinery, or patents. Depreciation varies according to the type of asset, and the IRS has a number of options such as straightforward depreciation and accelerated depreciation.
Step 4: Utilize Tax Credits and Adjustments
Lastly, use tax credits, e.g. research and development, renewable energy, or employing veterans. The credits will reduce the tax liability directly.
To conclude, the taxable income is the gross revenue less allowable deductions, depreciation, and credits. This amount is used to calculate the proper amount to pay as corporate tax according to the U.S. law.
Effective Corporate Tax Rate (ETR) Explained
The effective corporate tax rate in the U.S. is the actual percentage of income that corporations pay in taxes in the U.S. which is usually below the one established by law. Though the federal statutory corporate tax rate is 21 percent, it remains at a lower real rate due to deductions, credits and strategic planning by many companies.
Statutory vs. Effective Tax Rate
Statutory rate can be defined as the law percentage charged on corporate profits without considering deductions and credits. The effective rate involves the computation of the total tax paid/ total pre-tax income. Here, an example being that a company that makes a profit of 10 million dollars incurs a tax of 1.5 million dollars and the effective rate is 15, not 21. This example demonstrates an interaction between tax laws and practices in the real world.
How Corporations Reduce Their Effective Tax Rate
The taxing code includes legal tax incentives that are used by large firms to reduce their ETR. Common strategies include:
– Research and Development Tax Credits: less liabilities to firms on innovation and technology.
– Depreciation Deductions:Write-offs accelerated on equipment and property.
– Foreign Income Deferrals: Transfer the profits to lower rates jurisdictions.
– Energy and Sustainability Credits: Rewards on the implementation of clean energy.
Essentially, the federal rate may give a minimum, but the real rate of a company is the actual load of taxation, which is usually a lot lower with the strategic financial management and utilisation of the tax benefits.
Corporate Tax Deductions and Credits
The knowledge of business tax deductions in the U.S can help to lower the total tax cost and increase profitability. The IRS enables the corporations to deduct and credit a vast number of investments, innovations that boost investment, innovation and sustainable activities. In the coming 2025, corporate credits will be dynamic and business organizations will get rewarded based on their contributions to technological development and environmental conservation.
Major Business Tax Deductions
– Depreciation Deductions: The tangible assets, such as machines, buildings, vehicles, etc., are depreciated by the corporations on an accelerated basis. The standard method is the Modified Accelerated Cost Recovery System (MACRS), which allows conducting write-offs at a faster rate and improving cash flow.
– R&D Tax Incentives: R&D tax credit is an incentive that is given to those companies who invest either in the development of products, processes, or the advancement of innovation. These credits will be able to reduce federal income tax liability by a big margin in 2025, and these credits will be offered to numerous industries, such as manufacturing, software and pharmaceutical industries.
Foreign Tax Credits
The corporations that have international operations, can claim foreign tax credits which allow the company to avoid paying taxes on the earnings in foreign countries twice. This makes the U.S. multinational firms competitive in the global market.
Small Businesses vs. Large Corporations – Tax Differences
The system of taxation applied to small businesses in the U.S. is aimed at distinguishing between different types of corporate entities with their own taxation and tax advantages. The three most frequently used structures, C corporation, S corporation and Limited Liability Company (LLC), are taxed differently particularly in the income reporting and taxation. The awareness of such differences can guide entrepreneurs to adopt the most tax-efficient structure.
C‑Corporations
A C-corporation pays tax independently of its owners at the rate of 21 percent on normal federal corporate tax. The first taxation is on the corporate level, followed by the taxation of those profits when they are given out as dividends to the shareholders a phenomenon called a double taxation. Although this type of structure is appropriate in large corporations due to its advantages such as eternal life and unlimited shareholders, small firms tend to shun away it to avoid excessive taxation.
S‑Corporate and LLCs
A S-corporation is a pass-through entity rather than a company, i.e. all the shareholders are taxed individually and not twice. The reason why the S-corp tax rate is appealing to the small business owners in need of a reduced effective tax burden is that tax is charged at personal income levels instead of the corporate tax rate. A like fashion, LLCs have tax flexibility – the vast majority of LLCs have pass-through treatment, with the income taxed on the owner level.
To conclude, the taxation of small businesses in the USA is heavily dependent on structure: C-corporations are subject to twofold taxation and benefit of the corporate taxation, whereas S-corporations and LLCs take advantage of the pass-through income taxation to remove taxation and ease compliance.
Key Proposals & Positions (2024–2025)
1. Biden’s Proposal: Raise Rate from 21 % → 28 %
President Biden would increase the federal corporate income tax by about 28% in his FY2025 budget as compared to 21%. He also proposes a corporate minimum tax hike to 21 per cent. out of the current 15 per cent. and an increase of the tax on stock buybacks by the company to 4 per cent. out of the existing 1 per cent. The administration would like to increase the tax on foreign earnings of U.S. multinationals (GILTI) by 10.5 per cent to 21 per cent and introduce a top-up tax to eliminate base erosion on international business. Another objective of the administration is to make the corporate minimum tax stronger to ensure that big companies cannot evade the taxes using deductions.
2. Treasury & IRS Proposals: Aligning With Global Minimums
To align with the global minimum corporate minimum tax rate, the U.S. Treasury suggests increasing it to 21 0 -percent. This belongs to the larger attempts to prevent profit-shifting and to reconcile the domestic regulations with the international standards.
3. Republican / Alternative Views: Lowering the Rate
Elsewhere, certain proposals are lower rate proposals. The former President Trump has proposed a reduction of the corporate rate to either 20 or 15 per cent. of companies that produce in the U.S. One of the leaked proposals goes as far as to propose a reduction in the rate to 15-20 per cent and even repeal the corporate AMT.
4. Other Proposed Changes
The One Big Beautiful Bill Act (OBBBA) which is being discussed now would permanently fix a lot of business incentives (e.g., 100 % expensing, the depreciation rule) but would not alter the statutory rate (21 percent). The OBBBA also suggests a better cap on deducting over $1 million in executive compensation. Part of the reforms might modify or eliminate some of the deductions or credits, particularly on large organizations, to raise the effective tax rate.
Analysis & Risks
Should corporate rate be hiked to 28 0 you would get a significant revenue growth, but the companies would retaliate, and U.S. competitiveness would be harmed. An increase in the corporate AMT or raising minimum taxes would decrease the chances of tax planning and restrict avoidance. The reforms of GILTI and the international regulations are to avoid profit shifting and make multinational corporations pay more taxes in the low-tax regimes. Nevertheless, the majority of the proposals are controversial politically, and approval is related to congress.
Impact of Corporate Tax Rates on the U.S. Economy
Corporate tax rates do not only impact on revenue, but they also impact on business decisions, investment flows and employment. The corporate tax rate also dictates the amount of capital that companies spend in expanding, allocating and competing in the international market.
Effect on Investment and Business Expansion
The reduction of rates usually fires up investment in the U.S. The more that firms retain after -tax they are more likely to invest in technology, infrastructure, and workforce development, which encourages productivity, innovation, and growth. In 2017, the federal rate was reduced to 21 3/4 by the Tax Cuts and Jobs Act (TCJA) and this figure began to significantly impact capital spending and stock buybacks. Increased rates can deter growth particularly in capital intensive industries and would drive companies to postpone investment or relocate to other regions with lower taxes.
Influence on Job Creation and Foreign Investment
Job creation and foreign direct investment (FDI) are directly influenced by the corporate tax policy. Competitive tax environment also draws the multinationals that are interested in stability and skilled labor. Increasing rates could induce investors to move business to more tax-efficient markets, with a consequent lower amount of capital inflows as well as innovation.
U.S. in the G20 Context
The rate of corporates in the U.S. is comparatively low out of the G20; several countries have corporate rates in the mid-20s to mid-30s. In some sections of its tax base, India and Argentina tend to have rates of about 35‛. It is approximately 34 per cent in Brazil, 31 per cent in Canada, and 30 per cent in Australia. In this way, the U.S. tends to take the place of the lowest-ranking rates in the G20 making it more attractive yet effective rates and other charges (e.g., state taxes) should be taken into consideration.
Competitiveness, Risks & Global Positioning
Strengths of the U.S. Position
Having a federal rate of 21% and with state taxes, U.S. corporations usually have an easier and more competitive rate compared to those in high taxation jurisdictions. U.S. decrease in combined rate after TCJA has increased its attractiveness to international investment.
Stability & Predictability
A large number of the OECD nations have decreased rates over years resulting in downward convergence. The U.S. having consistent averages in the world contributes to its attractiveness to long term investment decisions.
Global Minimum Tax Mechanism (Pillar Two)
The 15 per cent mechanism of a global minimum tax has been agreed as a component of the OECD/G20 Inclusive Framework to curb the process of profit shifting and to deter a race-to-the-bottom on tax competition. Since this floor is below the U.S. rate, it will decrease the pressure on the U.S. to subject its multinationals in the low-rate jurisdictions to top-up taxes.
Challenges & Risks
State and Local Layers
The federal rate is competitive but the state and local taxes may increase the burden which will reduce the competitive advantage on a global scale.
Effective Rates Statutory Rates
Incentives, deductions or reliefs are generous in many countries and therefore the effective corporate tax rate (the one that the companies actually pay) can be a lot lower than the official rate. The United States should make sure that its incentives are futuristic.
Tax Competition and Profit-Shifting.
The multinationals could still divert profits to the ultra-low jurisdictions even with a relatively low rate to reduce taxes- hence the U.S. needs to ensure that it has good anti-base-erosion regulations. Global coordination is key.
How Businesses Can Reduce Corporate Tax Liability
Smart financial management entails reducing tax liability as an important aspect. When companies plan strategically, utilize allowances, and ensure that they are well-compliant with the regulations of the IRS, they can legally cut down on the corporate taxes. The practices boost cash flow and increase profitability in the long run.
Strategic Corporate Tax Planning in the USA
A good tax planning is commenced by a thorough analysis of your company financial structure and sources of income. Deductions that are allowed in buildings, equipment and costs including operating expenses, depreciation and charitable contributions reduce taxable income. Federal and state tax credits are often available on top of an investment in research and development (R&D) or energy-efficient undertakings, which proves to be a direct reduction in tax.
Reinvestment and Compliance Optimization
Reinvestment is another important way of decreasing the tax liability. The additional deductions and tax deferrals can be made by taking the profits back into the business expansion; such as new equipment, product development, or new locations. The adherence to the IRS compliance strategies prevents fines and audits and utilizes the maximum tax-saving opportunities.
The employment of professional tax experts or corporate consultants would make sure that all deductions, credits, and exemptions are made in the right way. The current tax landscape is continually changing, which is why it is necessary to plan proactively and constantly be in compliance to stay ahead of the pack and minimize the overall tax liability.
These are the projections and the trends of the future of corporate taxation in the USA by the year of 2030 and particularly the future of digital tax evolution, the establishment of global minimum tax, and anticipated domestic reforms. These rest on suggested action, premature action, and international action momentum- however, policy is always open to political changes.
Key Trends & Predictions by 2030
| Trend | What’s happening now / proposed | Likely path by 2030 | Implications |
|---|---|---|---|
| Global Minimum Tax (Pillar Two, OECD / G20) | In 2021, ~136 countries agreed via the OECD to a 15% global minimum tax to curb tax competition and profit-shifting. The U.S. has had partial related regimes (e.g. GILTI) but full alignment / top-up tax mechanisms have been delayed or contested. | By 2030, either the U.S. will have adopted or implemented many of the Pillar Two / GloBE rules (or some hybrid version), possibly with negotiated “side agreements” or exemptions to protect U.S. multinational competitiveness. There may be expanded IRS rules to prevent profit shifting, stricter definitions of where income is “booked” and taxed. | Increased compliance costs for multinationals, less ability to shift profits to low-tax jurisdictions; potentially a small rise in effective tax rate on foreign income; shifts in where companies locate IP / intangible income. Also possible trade / tax tensions with countries enforcing strict top-up taxes. |
| Digital Economy Taxation / Digital Services Taxes (DST), “Pillar One” | OECD has proposed under Pillar One a redistribution of taxing rights for large digital/consumer-facing firms, especially those with large revenues and profit margins, to allow market/sales jurisdictions to tax a share. The U.S. has resisted certain digital services taxes by foreign countries but is engaging in discussion about how to tax digital business models more fairly. | By 2030, expect more rules targeting digital and platform companies: possibly US rules or international treaties imposing or sharing taxing rights tied to user/customer location, not just where the company is headquartered. Could see U.S. adopting its own digital tax rules or contributing to multilateral frameworks that influence domestic law. | Digital firms will face more uncertainties about where they pay tax; perhaps more double taxation risk if countries impose DSTs; more incentive to adjust operations / legal structures; possibly more negotiations/treaties to avoid trade retaliation. |
| Domestic Corporate Tax Rate Reforms | Proposals (e.g. under prior administrations) to raise the statutory corporate rate from 21% to ~25-28% have been floated. Also proposals to increase the corporate minimum tax, limit certain deductions/credits, perhaps restrict some loopholes. The U.S. also enacted the “One Big Beautiful Bill Act” (OBBBA) in 2025, which permanently extends many TCJA business/international tax provisions, modifies clean energy tax credit phase-outs, and revises some international provisions. | Likely incremental increases in rates among certain sectors (esp. large corporations) rather than sweeping hikes; perhaps new minimum taxes on book profits; changes to FDII / GILTI in how foreign income is taxed; further tightening of incentives that are expensive or underused. Also pressure to close corporate deductions, limit deductions for executive compensation, etc. | Businesses will need to plan for higher effective rates; less ability to rely on favorable deductions, more compliance burden; cost structure changes; possibly more tax planning and lobbying. |
| Enforcement, Reporting, Transparency | Increased pressure internationally and domestically to reduce profit shifting, require country-by-country reporting, greater transparency of multinational operations. OECD and U.S. both working on GloBE rules, top-up taxes, rules under Pillar Two, etc. Also new laws require more disclosures. | By 2030, more robust enforcement regimes; enhanced IRS capacity; more use of digital tools, AI, data analytics to detect tax avoidance; more treaty / international agreements for information exchange; stricter rules for intangible assets, IP transfers, related party transactions. | Increased compliance costs; fewer arbitrage opportunities; possibly fewer loopholes; greater risk of audit; companies may reorganize operations to simplify cross-border taxation. |
| Tax Policy for New Economy / Tech / Climate / ESG | Growing focus on how tax policy can incentivize climate investment (clean energy, EV, decarbonization), R&D, sustainable infrastructure. Also how to tax new forms of digital, crypto, blockchain, AI-driven business models. | Expect expanded credits/incentives for green investment; possibly “carbon border adjustments” or taxes related to carbon or emissions; more rules for taxation of digital assets, crypto gains, possibly taxing data usage or digital footprints; tax policy becoming part of ESG / sustainability reporting. | Companies in tech, green energy, and those heavily using digital or crypto will need to be very attentive to evolving regulation; potential tax incentives may favor those investing in sustainability; non-green sectors may face regulatory / tax risks. |
Key Uncertainties & Risks
Political changes: Reforms might go down or be diluted due to changes in administration or Congress. The tax policy is very political.
International cooperation: Numerous reforms like the global minimum tax and digital tax regulations have to be agreed upon at the international level. Other countries, notably low-tax jurisdictions, may oppose this; or may, at least, slow down the implementation or provide loopholes.
Industry pushback:Large corporations can influence the implementation of the reforms by lobbying, e.g. by creating certain exemptions or staging the implementation.
Implementation capability: Despite the existence of laws, the real implementation lies on the IRS, the Treasury and their capability to audit, collect and enforce, particularly in the cross-border situations.
Summary
In 2030 we ought to see the U.S. corporate tax policy be more in line with the rest of the world in a number of ways: minimum taxes on multinationals, less ability to shift profits abroad, higher tax rates to large corporations in some places, and more aggressive enforcement and reporting. The companies, which work in the U.S., will have to track the situations in international tax treaties, the domestic legislative process, and adapt the strategy, including the location of intangible resources, supply chains, and investments in green technologies.
Conclusion
Learning about the corporate tax rates in USA is not merely a compliance matter, it is a matter of long term financial management and growth. Between the stable 21 percent federal corporate tax rate under the TCJA to fluctuating state corporate tax rates all the elements influence the operations, investments and competition of business worldwide.
In this guide, we have discussed how we compute a corporate tax, the distinction between the statutory and the effective rate, how a deduction and credits, such as R&D incentives and depreciation, may decrease a taxable income. We also discussed the existence of varying tax vehicles between small businesses and big corporations and how new reforms and future trends such as the global minimum tax and taxation on digital-economy businesses are rebuilding the taxation of business.
Corporate tax policies are dynamic and future reforms up to the year 2030 can have a serious effect on the way companies plan and report their income. To avoid liabilities and stay compliant, it is crucial that the businesses remain proactive; they need to keep track of the changes in the tax system, use the tax-planning techniques, and seek a consultation with professional tax advisors.
Concisely, it is not only a legal obligation to be conscious of changing corporate tax policies in the USA but a competitive edge. Being updated enables companies to maximize deductions, maximize profitability, and be in a position to experience sustainable success in the modern global economy that is very complex. For more insights about Corporate Tax Rates in USA and other tax laws, visit our website Right Tax Advisor.
FAQs on Corporate Tax Rates in USA.
Q1: What is the corporate tax rate of the USA at the present?
C-corporations pay federal corporate tax of 21 percent on their taxable income that has not been reduced since the TCJA reform of 2017.
Q2:Are there corporate income taxes in every state in the U.S?
No. There are six states that do not levy a conventional corporate income tax and they are Texas, South Dakota and Wyoming.
Q3: Why do small businesses attract different taxation as compared to corporations?
The small-scale businesses may be pass-throughs, like LLCs or S-corporations; hence, the earnings can be taxed at individual income tax rates rather than corporate tax rates.
Q4: Which are some of the significant corporate tax deductions found in the U.S?
Major ones are research and development (R&D) credit, depreciation, charitable contributions, and employee benefit programs.
Q5: What are the ways in which corporations lower their tax rate?
Deductions, credits and deferrals are some of the ways that companies are reducing the amount of taxable income and thus, achieving an effective tax rate that is low than the statutory 21.
Q6: Do you expect any change in corporate tax rates in 2025?
Yes. The government of U.S. has been talking about increasing corporate rates to 25 and 28 percent based on the economic and fiscal factors.
Q7: What is the position of U.S. as a leader in corporate taxation?
Combining federal and state tax makes the U.S. rate lower than the average in the OECD, and it is fairly competitive in developed economies.