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That's insufficient. Most of the world has a lower corporate tax rate than the United States. The Cayman Islands might be the most attractive place to park thei
by slavik81 9y ago
That's insufficient. Most of the world has a lower corporate tax rate than the United States. The Cayman Islands might be the most attractive place to park their funds, but pretty much anywhere would still be more attractive than bringing it to the US.
- charlesdm 9y agoLowering the US corporate tax rate to say 10 or 15% is the only reasonably feasible solution. Incentivize companies to book profits in the US. Then increase the dividend tax rate to compensate (depending on if this ends up being tax neutral or not -- it might very well be tax neutral given the extra profits that would be booked in the US)
- slavik81 9y agoThat's more or less what I would suggest. Though, I would probably put the rate at 25% and only tax domestic profits. That would bring US policy in line with the rest of the G7. Raising taxes on dividends and capital gains to make it revenue neutral is also a good idea. At the moment, tax policy basically penalizes companies bringing money earned in other countries home into the United States. It's stupid. Tax holidays are also stupid. Fix the problem at its heart.