JamesInFlorida
Senior Member
- Dec 18, 2010
- 1,501
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The high U.S. corporate income tax rate is driving jobs overseas as businesses work to remain as competitive as possible in the global marketplace. It doesnt help that the United States is the only country in the world that taxes its businesses on the income they earn in foreign countries. Every other country only taxes businesses on the income earned within their borders. A reduction of the corporate income tax rate down to at least the average 25 percent rate in the OECD is long overdue.
High Corporate Income Tax Rate Driving Jobs Overseas
So your source on the issue is The Founddry, which is a secondary source, that's obviously biased if you read the article. Mine is the IRS-a primary source. Take a guess at which one is more accurate when it comes to discussing taxes?
According to the IRS companies making profits in other countries only pay the difference between US taxes and that other country's taxes (if there is one).
I've known this for years (decades?), that was just the first thing I found after looking for a minute or two.
According to the IRS companies making profits in other countries only pay the difference between US taxes and that other country's taxes
Yes! If a US company makes $1 billion in Brazil, after they pay taxes there, they still owe US taxes.
If a Brazilian company makes $1 billion in the US, after they pay US taxes, they don't owe any additional taxes to Brazil for those US based profits.
I'm glad you agree with my claim. Now what were you saying about bias?
That depends if Brazil's corporate tax is under 35% or not (off the top of my head-I don't know if it is).
A company in Ontario, Canada pays 0-that's ZERO corporate taxes. And American in Ontario pays US Federal taxes, whatever their rate would be. That's a fact.
US citizens living other countries pay US federal taxes, with no deductions for the taxes they pay that other country-corporations do. My main point is that that is not balanced. It's not flat, nor fair. If somebody is for a flat tax (which I am btw), it has to go both ways. No loopholes for the corporations.