Did you know that the United States has the 2nd highest corporate tax?

Question

And people wonder why so many businesses are moving overseas.

http://www.taxfoundation.org/blog/show/1471.html

Japan is number 1.

Answer 1

I known it for 6 years at a 39% tax rate for corporate income tax, and then add on payroll taxes. Sweden is at 29% percent, and other european corporate income tax rates are lower than America. Liberals should heed caution raising taxes on capital and investment that create productive growth. One thing to soak the rich indiviual people another to soak the corporation. Its cheaper sometimes to do business in Canada for manufacturing than America because of Americas corporate tax rate

Answer 2

Japan charges the highest corporate tax rate in the world. The United State have the 2nd highest Corporate Tax rates such as the war in Iraq, our involvement in EVERYTHING, ton of business regulations, etc. However, you have to remember even though we have one of the largest corporate tax rate in the world, companies are not stupid. There are TONS of tax incentives to cut down tax rates, and lobbyist fighting for tax credits here and there. So in a sense we these corporations dont always pay the full amount, there are always loopholes! Just to look at wealthy individuals avoiding taxes such as charity and offshore accounts etc.

Answer 3

I just love people who raise the corporate tax issue. In most countries, instead of a corporate tax, they have a national value added tax. While one is technically a sales tax and the other is an income tax, their effect on business profitability is essentially the same.

P.S. A corporation moving overseas does not effect its corporate income tax. The tax is payable by both foreign and domestic corporations based on income generated in the United States. What many corporations do is create dummy corporations overseas to create the fiction that the income is generated outside the country. For example, an oil company can create a company in the Bahamas and have that company apply for a patent for a new motor oil or fuel additive. The American oil company then pays an outrageously high licensing fee to the Bahama company to use that new formula. Magically, the Amercian oil company shows losses on its American business and the Bahama company is very profitable.

Answer 4

(I misread the chart per a note by Stan and deleted my previous reply.)

However, me thinks that there are better reasons for corporations moving overseas than taxes being a primary reason - as the question implies. Somehow, it doesn't bother me at all.

Corporations, particularly the international corps seem to have saturated, or if you will, exploited the domestic market to its present capacity and are only too willing to move overseas where the pickings are easier - particularly if the USGovernment is so willing to sacrifice American lives and billions of dollars to "open up new markets"... which really, is, as Iraq exemplifies, simply a guise for monopolistic or near-monopolistic opportunities. And that, is a poor way to spread "capitalism".

Answer 5

Did you know that in the United States, the federal corporate rate is 35%? But since 1999, when Treasury announced the "check the box" system many corporations can elect to be treated as a pass-through entity, thereby skipping the entity level 35% tax and having all income pass through to the shareholders?

Answer 6

Our corporate executives also pay themselves on average 40 times more than any modern country.
All of those companies going overseas will eventually blunder simply because overseas is not America and the worker and cultures in those countries are not in line with American corporate ideology. It will take a while but all of those companies will eventually be back.

Answer 7

No, no, no. See, that's not right. The mean, nasty, evil Republicans see to it that the wealthiest of the wealthy and all those horrid corporations pay LITTLE to NO taxes!!!

(I'm trying to keep liberals from getting their feelings hurt. We mustn't have that; we might get reported for abuse.)

Answer 8

Just think what will happen if Hillary is elected President. HillaryCare=$taxes$.

Answer 9

Actually, when you take all things under consideration, the U.S. is about average.

http://www.cbo.gov/ftpdocs/69xx/doc6902/11-28-CorporateTax.pdf

There's a REAL look at the numbers.

Remember, figures don't lie, but liars figure.

Answer 10

I wonder who number one is.