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What you're suggesting is a territorial tax system, versus the a worldwide tax system such as the one the US currently has. Using a worldwide system is actually
by tvanantwerp 11y ago
What you're suggesting is a territorial tax system, versus the a worldwide tax system such as the one the US currently has. Using a worldwide system is actually very rare--only six OECD countries implement worldwide taxation rather than territorial. Part of the reason America-based companies seem to be trying so hard to avoid American taxes is because they are, compared to the other nations they operate in, much worse.
- joelrunyon 11y agoMaking the US tax system more competitive worldwide is very rarely brought up. Corporate taxes aside, I think the US is one of just 2 countries (the other being Eritrea) where you're taxes personally on the money you make based on your citizenship (not residency) no matter where you live. Stuff like that is why you're starting to see people give theirs up in favor of more favorable tax codes.
- ryanhuff 11y agoDoes being US company afford these companies benefits that justify a tax premium?
- mike_hearn 11y agoNo. Why would it?