#1 Once Japan's corporate tax rate goes down in April, the United States will have the the highest corporate tax rate in the developed world.
#2 In the United States, the corporate tax rate is 35 percent. In Ireland, it is only 12.5 percent. Needless to say, hundreds of American companies have been moving at least some of their operations over to Ireland.
#3 As corporations have become experts at gaming the system, their contribution to federal revenue has gone way down. Back in the 1950s, corporate taxes accounted for about 30 percent of all federal revenue, but in 2009 corporate taxes accounted for just 6.6 percent.
#4 Switzerland has become an extremely attractive tax haven for multinational corporations. In fact, some cities in Switzerland do a booming business in setting up sham headquarters for foreign corporations. For example: Zug, Switzerland is home to 26,000 people and 30,000 companies.
#5 Transocean, the owner of the rig involved in the BP oil spill, has approximately 13,000 employees in Houston, Texas and about a dozen or so employees in Zug, Switzerland. But by moving their "headquarters" to Zug for tax purposes, Transocean has saved about 2 billion dollars.
#6 According to the New York Times, General Electric made a total of 14.2 billion dollars in profits last year. So how much did they pay in taxes to the U.S. Treasury? According to the New York Times, not one penny was paid. However, General Electric disputes this.
#7 Even though Boeing receives billions in federal subsidies every year and even though it has a bunch of juicy government contracts it did not pay a single penny in federal corporate income taxes from 2008 to 2010.
#8 Exxon-Mobil paid $15 billion in taxes in 2009, but not a single penny went to the U.S. government. Meanwhile, their CEO brought in over 29 million dollars in total compensation that year.
#9 It is estimated that U.S. companies have approximately 1.2 trillion dollars "trapped" overseas, because they cannot bring that money back into the country without being subjected to the 35 percent corporate tax rate. But that money certainly could go a long way towards stimulating the stagnating U.S. economy.
#10 Sadly, the 1.2 trillion dollars that is "trapped" overseas is just the tip of the iceberg. The largest corporations and the ultra-wealthy have turned tax avoidance into an art form. The truth is that according to an article in Forbes magazine, there is somewhere between 15 and 20 trillion dollars in offshore bank accounts, brokerage accounts and hedge fund portfolios. In fact, it has been estimated that a third of all the wealth in the world is held in "offshore" banks.
"In the United States, the corporate tax rate is 35 percent." To bad they don't pay it. Believe I saw that Japanese corps are forgoing their tax breaks due to the unfolding unmitigated disaster, that has occurred and is occurring in and around Fukushima.
I find it somewhat amusing that you would publish this tripe without verifying the fact. Here are a few of my own (not copied and pasted, straight from my actual knowledge base).
- The EU are putting pressure on Ireland to increase their corporation tax rate, that is the cost to their country of the EU bailout. They are broke, because their tax revenues didn't meet their overheads. The EU rushed to help, but only because they want a level playing field.
- Major US companies are NOT moving to Ireland. They simple base their European operations in Ireland. Seeing as they would probably want to base their European HQs in an English speaking country anyway, the only losers are the UK.
- US federal tax rates actually range from 15%-35%.
- The US has its own tax haven, Delaware, if you want the US to compete on a global level then you need to level your own playing field first.
- Over half of US companies are incorporated in Delaware.
- You could end up paying as little as 15% in Delaware, much LESS than most of the developed world.
Am I the only one who sees the hypocrisy in your post? You note the tax avoidance of major corporations, and then state that you are moving to Switzerland?
"The Japanese also have trillions offshore that could fund repairs." Japan the 2nd largest holder of US dept. What happens if they stop buying US dept? What happens if the want to cash in their US dept, ie. bonds?
The EU is just as insolvent as the U.S.A is. Its only a matter of time before taxes and interest rates rise there, or their currency collapses. They have a huge unfunded entitlement system that will crumble too. You are jumping from the frying pan into the fire.
Come to Canada. if you can stand a 6 month blast of winter, you will be safe and our corp taxes start at 15% I beleive and headin down. No sovereign debt problem, solvent benefits programs, universal health care but maybe a real estate bubble though.
Gee, I don't know...you might not like living around a bunch of "anti-semites"....tsk tsk
23/03/2011 "GAZA, (PIC)– Swiss President Micheline Calmy-Rey has announced her country is developing a project to open up all crossings to the Gaza Strip, which has been suffocating for the last five years from an Israeli blockade.
For his part, Lord Andrew Phillips, who headed the delegation, said world silence was to blame for Israel’s obstinacy, saying that Tel Aviv understands that silence over recent attacks has provided a green light for more attacks.
Swiss MP Geri Müller emphasized the importance of Switzerland’s role in preserving the Geneva Convention brokered in the Swiss capital and stopping Israel from violating it."
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