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Why doesn't the United States LOWER the Corporate Tax Rates to ENCOURAGE companies to remain here. We have the HIGHEST corporate tax rates in the world. No wonder companies move.
no wonder....which tax is moving them?
Quote:
...some experts say there is a bright spot on the jobs front: At least a handful of American companies who had relied on workers stationed overseas are now bringing jobs back to the United States. In addition, foreign companies are continuing to expand U.S. operations and hiring more local residents, instead of flying in foreign staff for business. It's called "insourcing" or "reverse outsourcing." It's the opposite of outsourcing, the oft-criticized practice of American companies' shipping jobs abroad to take advantage of lower labor costs and other incentives.
Right because if you owned a company and your tax guy said you could save 10 million a year in taxes LEGALLY. You would say no.
I would probably say no if he told me that five or six hundred families are going to lose their house, cars, income, retirement, medical, dental, savings, and that these families loss of income is going to mushroom out and negatively affect possibly hundreds of other businesses that depend on these families to frequent their business!!!
If my tax guy told me I could save the 10 million if I did this or only save the other 90 million if I didn't, then I probably would not.
I've got a conscience and an obligation to my employees and country!!!
But if you look at what really counts — the effective tax rate on foreign-source income — you get a very different picture. An August 2008 study by the Government Accountability Office pointed out that “… the United States imposes only a residual tax on foreign income, after providing a credit for taxes paid on that same income.” Combine that break with the deferral, and you get an average effective rate of around 4 percent, according to the GAO.
The United States has the second-highest corporate tax rate in the world, though at just over one-tenth of the budget, the overall share of revenue it raises is remarkably small, both because the corporate tax base is chopped up by so many deductions, exemptions and credits, and because larger companies have great flexibility in shifting their profits around the world to lower their tax bills. In December, the Government Accountability Office reported that 83 of the nation's 100 largest companies have subsidiaries in tax havens, with Citigroup, Morgan Stanley and News Corp. (think Fox News) leading the way, each with more than 150 subsidiaries in tax haven locations.
"Corporate America is not suffering, I'll put it that way," he said. "Corporations are doing better in the total tax picture than the people I'll walk by on the street out here."
Warren Buffett
Last edited by compJockey; 05-06-2009 at 07:14 PM..
Clearly reality is a difficult concept for you. Corporations are taxed on their profits, they do not have income or an income tax. Individuals (or sole-proprietors) earn income and pay income taxes, not corporations.
You are splitting hairs; profits are income for corps, hence the "Corporate Income Tax" as discused here:
Corporate Income Tax Rates--2009, 2008, 2007, 2006, 2005, 2004, 2003
Taxable income over Not over Tax rate $ 0 $ 50,000 15% 50,000 75,000 25% 75,000 100,000 34% 100,000 335,000 39% 335,000 10,000,000 34% 10,000,000 15,000,000 35% 15,000,000 18,333,333 38% 18,333,333 .......... 35%
Suggest you call the IRS if you are confused.
But the point is, as has been shown, corporations are making profots, but not paying taxes on them.
Just get ready for endly whining and complaining and the 'class envy' bogus argument from the elites of the country who don't want to share income with anyone... the rules were heavily slanted in their favor ever since Reagan - and now that the pendulum is swinging towards the center - they are going to scream bloody-murder like the greedy little kids they are inside...
Nice thing is - you can safely ignore them... their voice doesn't count nearly as much as it did over the past 8 years...
They have a dwindling collection of allies these days. But, they're WAY ahead in resources.
Typically, the argument for cutting the U.S. corporate tax rate centers on improving the ability of American companies to compete globally," said Hodge. "While true, those arguments overlook the fact that individual households bear the corporate tax burden"
28 percent of large foreign corporations, those with more than $250 million in assets, doing business in the United States paid no federal income taxes in 2005 despite $372 billion in gross receipts.
Quote:
Originally Posted by shorebaby
Correct so the fact is if the 28% did pay taxes those taxes would have been passed on to US households.
What is correct is the households are already paying the tax and your "arguments overlook the fact that individual households bear the corporate tax burden" while "28 percent of large foreign corporations, those with more than $250 million in assets, doing business in the United States paid no federal income taxes in 2005 despite $372 billion in gross receipts."
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....which tax is moving them?
