Anonymous
Anonymous asked in Politics & GovernmentPolitics · 7 years ago

Does the US have the highest corporate tax in the world?

Would that cause corporations to park their money offshore?

Update:

Sarg - Canada top = 15% US = 39%

12 Answers

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  • 7 years ago
    Favorite Answer

    Not at all.

    According to the Wall Street Journal, however, the biggest gun in the government’s war against undeclared offshore accounts is yet to come: a new provision of the Foreign Account Tax Compliance Act (FATCA), originally passed in 2010, that will take effect in July 2014. This new provision would require foreign financial institutions to report information about their U.S. account holders to the Internal Revenue Service (IRS). This includes both U.S. citizens and U.S. green card holders, no matter where they are living. “FATCA is a dragnet meant to force transparency and curtail tax evasion around the world,” Christine Ballard, an international tax specialist at the accounting firm Moss Adams, told the Wall Street Journal. “It affects millions of U.S. taxpayers both here and abroad. Some people are willfully evading U.S. taxes.

  • 7 years ago

    I'm so sick of this liberal propaganda. The US has the highest corporate tax rate in the world. So-called "effective" tax rates are political double-speak for imaginary rules that don't exist anywhere in the world. For example as a conservative I could argue that the cost of regulatory compliance, govt bureaucracy, and state and local taxes and fees make the effective tax rate 99%! It's BS of course and you should ignore it!

    Just like individual income taxes, corporations don't literally pay 35% of their total revenue to the govt. They have several legal deductions/exemptions deemed to serve the public interest. They are not "loopholes." If 2/3 of corporations don't pay any taxes (not true) it wouldn't matter because their stockholders get taxed AGAIN when they earn dividends from stock! In other words, what they don't get the corporation, the IRS will get from the owners income.

  • Sean
    Lv 7
    7 years ago

    The highest, but there are loopholes to get around the taxes. From what I understand money made outside the country is taxed when it comes back in, offshoring it avoids the tax. Sometimes the president will grant a tax free day, then the offshorers can bring their money back into the country that one day and avoid taxes.

  • Big K
    Lv 7
    7 years ago

    We have the second highest I think, but there's so many loopholes and subsidies that in reality it's much lower than that, and if you happen to donate to the right politician (like GE did to Obama) they'll let you off the hook entirely. I'd agree that raising taxes is a bad idea right now but there are other reasons that keep companies from building here other than the tax rate.

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  • 7 years ago

    Yes

    Obama over taxes and over regulates the crap out of corporations and then stands there scratching his head wondering why the corporations are not growing and hiring more employees ?

  • Anonymous
    7 years ago

    the most prosperous counties have a high corporate tax and a relatively small gap between the richest and the rest of the country.

    85 individuals hold ½ of the world's wealth. they pay little or no tax.

  • Anonymous
    7 years ago

    If you want high corporate tax, come to Canada. Tax is high up here.

  • Josh
    Lv 4
    7 years ago

    Yea that would incourage job growth! Sike!

    Unless

    I would be all for increasing corporate taxes for any American companies who outsource jobs. They should be punished in this day and age.

  • Anonymous
    7 years ago

    Cheap workers and no worker or environmental standards are the real reason industry moves to other countries.

    We could decline the importation of products from countries that undermine our laws and standards.

  • Sarah
    Lv 7
    7 years ago

    No, the effective tax rate is very low, only 12%, and 2/3rds of corporations pay ZERO taxes.

    http://www.cbsnews.com/news/most-companies-pay-no-...

    http://money.cnn.com/2013/07/01/news/economy/corpo...

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