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The highest tax bracket is high, but tax laws also have many, many deductions and loopholes. As a result, US corporations as a whole pay about 18% in tax, whic
by tasty_freeze 9y ago
The highest tax bracket is high, but tax laws also have many, many deductions and loopholes. As a result, US corporations as a whole pay about 18% in tax, which is somewhat lower than most western countries.
If these laws were changed to make a flat 20% tax with no deductions, it would be revenue neutral or even slightly positive, but then the companies would all complain about the loss of deductions.
- valuearb 9y agoYou are ignoring state taxes and tax deferral from not repatriating. Once repatriation taxes are paid the US rate increases substantially, even with a lower repatriation rate. Apple pays nearly 40% in the US combined with state corporate income taxes. On foreign earnings it pays about 10% to foreign governments. Combined it works out to 23%, but when the repatriated earnings are taxed it will shoot up.