June 18, 2017

JUST TAX THEIR CONSUMPTION:

Republicans debating remedies for corporate tax avoidance (David Morgan, 6/17/17, Reuters)

Lawmakers say the current tax code incentivizes profit shifting overseas because of the high 35 percent U.S. corporate income tax rate and rules that allow companies to hold profits abroad tax free until returned to U.S. soil.

Without effective measures against tax avoidance, experts and lobbyists said tax legislation could trigger a new exodus of income and assets abroad. Because Trump and Republicans in Congress also want to end U.S. taxes on foreign earnings, companies could eliminate their U.S. tax bills altogether without restrictions.

Tax reduction strategies have been employed for decades by companies including Microsoft Corp (MSFT.O), Apple Inc (AAPL.O) and Amazon.com Inc (AMZN.O).

Independent analysts estimate the federal government misses out on more than $100 billion a year in corporate tax revenues as a result of tax reduction maneuvers. That is equal to one-third of the $300 billion in annual corporate tax revenues.



Posted by at June 18, 2017 7:29 AM

  

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