May 22, 201313 yr Corporate taxes are a form of double taxation. A corporation pays (or is supposed to pay) tax on NIBT. Some of that is a) reinvested in expansion and growth or b) payed out in forms of dividends. Either of these activities will generate more tax income - just in another form. Also, as a company stock rises the capital gains paid is higher when the stock is sold - again generating taxes. So tax revenues still are generated. That said, using faux corporations based in one of the most favorable corporate tax countries in the world (Ireland) has the appearance of looking shady at best.
May 23, 201313 yr Tax bills for 5 corporate giants - Wal-Mart Stores: $7.1 billion (1) - CNNMoney.com A lot of companies using loopholes to avoid taxes. Only Walmart paid US Federal Taxes out of the top 5 biggest US corporations. Bank of America -$2.8 Billion General Electric -$1.1 Billion (Total Tax refund, not broke down US vs International) Chevron -$19 Million Exxon -$156 Million (but did pay $15.2 Billion in International taxes) Walmart $5.3 Billion Paid Apple paid $7B in corporate taxes in 2012 - most in the US. They also avoided more than any other company. The Biggest Takeaways From Apple's Tax Grilling (AAPL)
May 23, 201313 yr If we put our rates competitive why wouldn't they. It would be easier. But when our rate is twice as high we are basically begging them to do it. The US rate is not twice as high as the rate in other countries. Most developed nations are around 30% corporate tax rate.
May 23, 201313 yr The US rate is not twice as high as the rate in other countries. Most developed nations are around 30% corporate tax rate. Plus you have to calculate the effective rate due to allowed write-offs.
May 23, 201313 yr The US rate is not twice as high as the rate in other countries. Most developed nations are around 30% corporate tax rate. Our neighbor to the North is 15%.
May 23, 201313 yr Plus you have to calculate the effective rate due to allowed write-offs. Without getting to technical with this statement, if we do have such competitive rates then why do these companies park those assets in other countries? I mean we do understand that write offs and other forms of lowering the effective rate in a lot of cases have caps. That is the reason large amounts of profits are then brought to foreign markets to be taxed. Not to mention the double taxation that currently occurs when assets are brought back in.
May 23, 201313 yr Without getting to technical with this statement, if we do have such competitive rates then why do these companies park those assets in other countries? I mean we do understand that write offs and other forms of lowering the effective rate in a lot of cases have caps. That is the reason large amounts of profits are then brought to foreign markets to be taxed. Not to mention the double taxation that currently occurs when assets are brought back in. My comment was not to say how competitive the rates are but , rather, the stated rate is different than the effective rate.
May 23, 201313 yr My comment was not to say how competitive the rates are but , rather, the stated rate is different than the effective rate. I don't think the effective rate is really relevant if its not competitive then its not competitive. There is a reason these companies park assets overseas. But I agree in a lot of cases like with most individuals the effective rate is usually lower.
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