I noticed even some mainland Chinese companies like Fuyaou opening manufacturing plants in the United States due to the tax cuts.
Statistics: [Source]
Corporations like Boeing, General Electric, Priceline.com and Verizon, paid no federal income tax at all over the five year period from 2008-13.
Five companies — Wells Fargo, AT&T, IBM, General Electric, and Verizon — enjoyed over $77 billion in tax breaks during this five-year period.
One hundred and eleven of the 288 companies assessed by CTJ (39 percent of them) paid zero or less in federal income taxes in at least one year from 2008 to 2013.
Factoring all of the above information in, what should we do about corporate tax rates (i.e. raise or lower) and subsequent evasive measures and loopholes (i.e. enforce or do not enforce)?
I believe that the corporate tax rate causes businesses in the United States to move to other countries, to shelter their money in other countries, and to create jobs in other countries. I also believe that the corporate tax rate in the United States, which is the second highest effective corporate tax rate out of all developed nations, prevents international businesses from coming to the United States.
I believe that by eliminating the corporate tax rate altogether, we will be able to give a huge boost to the economy. More goods will be produced, more jobs created, more money will stay in the United States, and more international businesses will come to the United States.
So, there you have it. I am willing to change my view, but you will certainly have to do a good job in convincing me.
CMV.
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What I mean is, do CEO's pay taxes on the corporations money it makes and then pays income tax on the money he pays himself, or am I missing something?
This is the best tl;dr I could make, original reduced by 28%. (I'm a bot)
> Apple Inc said none of its operations were moved from Ireland and that changes made to its corporate structure in 2015 were specially designed to preserve tax payments to the United States, and not to reduce taxes anywhere else.
> The statement on Monday from Apple comes following criticism of its tax affairs after reports based on the "Paradise Papers" showed that the iPhone maker shifted key parts of its business to Jersey as an offshore tax haven in a move to maintain a low tax rate.
> Apple said it pays billions of dollars in taxes to the United States at the statutory 35 percent rate on investment income from its overseas cash.
> Last month, Apple responded to questions from the ICIJ and others revealing that when Ireland changed its tax laws in 2015, the company complied by changing the residency of its Irish subsidiaries and informed Ireland, the European Commission and the United States.
> Apple is the largest taxpayer in the world, paying over $35 billion in corporate income taxes in the last three years, according to the statement.
> Tax reduction strategies have been employed for decades by companies including Microsoft Corp and Amazon.com Inc..
Summary Source | FAQ | Feedback | Top keywords: tax^#1 Apple^#2 States^#3 United^#4 Ireland^#5
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Introduced: Sponsor: Rep. Jerry McNerney [D-CA9]
This bill was referred to the House Committee on Oversight and Government Reform and House Committee on Ways and Means which will consider it before sending it to the House floor for consideration.
This is an old article (2008), but it sums up my views well. It's written by head of the Harvard econ department Greg Mankiw. Not that I want to make an argument from authority, but this idea has some weight behind it.
Summary of my reasoning:
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The incidence (burden) of corporate income tax mainly falls on labor (one CBO study suggests 70%), decreasing wages. So decreasing the tax will increase wages, which is good both for the individuals and the economy.
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Encourages corporations to stay in and move to the US, or at least reduces the incentive to dodge taxes.
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Leads to economic growth, both through helping the stock market and reducing distortions in the free market. Most taxes tend to mess with the free market and are inefficient (other than Pigovian taxes on externalities), especially the corporate tax.
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Won't mess with the deficit TOO much. The money that corporations aren't paying won't just disappear. It will go into stock transanctions (taxed via cap gains), salaries (taxed via payroll and income), etc. etc. If it drives economic growth, the tax base will also grow, which could actually make this tax cut self-funding. If we do need to fix the budget hole it makes, maybe slightly raise capital gains tax on higher incomes/transactions, and/or raise the gas tax?
I've been getting stuck in conversations with people about Bernie and about the corporate regulation. Most people tend to agree that it's wrong from companies to avoid taxes with these loopholes. However, the argument that I keep hearing is that If they are asked to pay, they will just leave the United States rather than complying. From here, the argument goes that our entire economy will collapse because of the lack of jobs. On Bernie's website, I've read all about how the taxes are being avoided and how wrong it is and where the money would go if collected and it's all great. As a Bernie supporter, what do I say about Bernie's plans to make sure the companies actually pay the tax rather than just up&leaving?
EDIT:
So, I just did some (research.)[https://home.kpmg.com/xx/en/home/services/tax/tax-tools-and-resources/tax-rates-online/corporate-tax-rates-table.html]
Australia: 30%
Belgium: 33.99%
Canada 26.5%
China 25%
Finland 20%
France 33.3%
Germany 29.65%
Greece 29%
India 34.61%
Israel 26.5%
Italy 31.4%
Japan 33.06%
Mexico 30%
Netherlands 25%
Poland 19%
Russia 20%
Spain 28%
Sweden 22%
Switzerland 17.92%
Taiwan 17%
UAE: 55%
UK: 20%
US: 40%
Venezuela: 34%
So, actually it seems that the US is the second-highest on the list, after United Arab Emirates.
My question centers around the idea that if companies didn't have to pay taxes on overseas profits, what percentage of that sum would come back into America? Having a steady inflow of cash from other nations would be good. Also would it bring down the trade deficit?
