Nearly half of US states, including most of the most populous states, have combined state/federal corporate tax rates higher than even Japan (the country with the overall highest national rate), according to Paul L. Caron at Tax Prof. Read the report from The Tax Foundation and see the entire list of states and countries at the link.
These rates do NOT include, naturally, the extra penalty the United States imposes on the overseas earnings of US-based corporations. Unlike virtually all other leading industrialized nations, we tax those earnings as soon as they are "repatriated" - brought home. As long as the overseas profit stays overseas, and is reinvested in the foreign country in which it was earned, it isn't taxed.
And we wonder WHY so many companies move their headquarters "offshore" these days! Wouldn't you, if simply declaring another office your "home base" allowed you to exempt a good bit of income from taxation? Of course, we also give a heavy incentive to our companies NOT to bring their overseas profits home . . .
Permalink | Linking Blogs | Sphere: Related Content | Digg this! | FARK It!
Filed under:
Business, Economics, Politics, World
Tags: business, economics, states, tax
Comments (6)
This has been occuring for ... (Below threshold)1. Posted by Mvargus | March 24, 2008 4:31 PM | Score: 1 (1 votes cast)
This has been occuring for quite a while. Its also why when there is a merger between a US company and a foreign company, the foreign company is always named at the buyer, even if it was the US company actually doing the purchasing. US corporate taxes are way to high.
1. Posted by Mvargus | March 24, 2008 4:31 PM |
Score: 1 (1 votes cast)
Posted on March 24, 2008 16:31
2. Posted by HughS | March 24, 2008 5:48 PM | Score: 3 (3 votes cast)
Ireland figured this out.....years ago.
http://www.taxfoundation.org/news/show/175.html
2. Posted by HughS | March 24, 2008 5:48 PM |
Score: 3 (3 votes cast)
Posted on March 24, 2008 17:48
3. Posted by Steve Crickmore | March 24, 2008 6:03 PM | Score: -2 (2 votes cast)
Though the American corporate tax rate is 35%,(McCain wants to reduce it to 25%) American corporations pay relatively less in taxes, compared to other industralized countries, due to the many tax deductions and credits such as interest deductibility and acceleration depreciation.. the American progress action site makes this argument.
3. Posted by Steve Crickmore | March 24, 2008 6:03 PM |
Score: -2 (2 votes cast)
Posted on March 24, 2008 18:03
4. Posted by SteveC | March 24, 2008 6:04 PM | Score: 1 (1 votes cast)
No wonder they need those ethanol mandates in Ioway.
4. Posted by SteveC | March 24, 2008 6:04 PM |
Score: 1 (1 votes cast)
Posted on March 24, 2008 18:04
5. Posted by HughS | March 24, 2008 6:23 PM | Score: 3 (3 votes cast)
Though the American corporate tax rate is 35%,(McCain wants to reduce it to 25%) American corporations pay relatively less in taxes,
I picked these at random. Looks to me like they are paying a lot of taxes...
http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=XOM
http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=MSFT
http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=GOOG
In the case of these three companies, why not eliminate the tax on profits and return the money to shareholders, hundreds of thousands of whom are middle class Americans.
5. Posted by HughS | March 24, 2008 6:23 PM |
Score: 3 (3 votes cast)
Posted on March 24, 2008 18:23
6. Posted by COgirl | March 24, 2008 6:42 PM | Score: 3 (3 votes cast)
And any company that has any operation in California has to pay state income tax on their worldwide earnings. Maybe it's the same in other states too (I know it's not the case in Colorado), I just happen to be familiar with California.
With U.S. corporations paying so much in taxes, don't you wonder why Dems continue to oppose big business? Kind of like shooting yourself in the foot.
And let's not forget that there is also double taxation on corporate earnings. The company pays the tax, then pays a dividend and shareholders pay tax on the dividend. It's a racket.
6. Posted by COgirl | March 24, 2008 6:42 PM |
Score: 3 (3 votes cast)
Posted on March 24, 2008 18:42