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U.S. corporations have a much higher tax rate than the rest of the developed economies. The vast majority of corporations aren't sitting on mountains of cash li
by webXL 11y ago
U.S. corporations have a much higher tax rate than the rest of the developed economies. The vast majority of corporations aren't sitting on mountains of cash like Apple. Additional tax expense is financed by a combination of higher prices, input cost cuts, and reduced profitability. You're not going to get much there.
- enraged_camel 11y agoUS corporations may have high tax rates but that's only on paper. In practice, they massively benefit from loopholes in the tax code that are too many to count. Not to mention tens of billions in subsidies.
- webXL 11y agoYeah, but where do those loophole savings go? They flow to shareholders in the form of earnings, which get taxed again, or to consumers in the form of lower costs. You really need to look at total tax revenue per GDP, and we're at the low end of that, but when you consider our high GDP per capita (http://gregmankiw.blogspot.com/2010/03/taxes-per-person.html http://gregmankiw.blogspot.com/2010/03/taxes-per-person.html), we're in the middle of the pack. We're actually not that stingy on education either: https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&ctype=b&strail=false&bcs=d&nselm=s&met_s=sp_pop_totl&scale_s=lin&ind_s=false&dimp_c=country:region&met_y=ny_gdp_pcap_cd&scale_y=lin&ind_y=false&met_x=se_xpd_totl_gd_zs&scale_x=lin&ind_x=false&idim=country:BEL&ifdim=country:income_level:OEC&tunit=Y&pit=1300345200000&ind=false&icfg&iconSize=0.33 https://www.google.com/publicdata/explore?ds=d5bncppjof8f9_&...
- randyrand 11y agoAnd there goes the continuation of offshoring. Next even the companies themselves will leave. Do people really not realize the consequences of these types of actions?