Heavy Taxes + Heavy Regulation = Outsourcing

McCain's Economic Adviser is ex-Texas Sen. Phil Gramm. On Dec. 15, 2000, hours before Congress was to leave for Christmas recess, Gramm had a 262-page amendment slipped into the appropriations bill. It forbade federal agencies to regulate the financial derivatives that greased the skids for passing along risky mortgage-backed securities to investors. And that, my friends, is why everything's falling apart. That is why the taxpayers are now on the hook for the follies of Fannie Mae, Freddie Mac, Bear Stearns and now the insurance giant AIG to the tune of $700 billion.
 
Wrong... roughly less than 2/3rds of corps pay taxes....

Many Firms Didn't Pay Taxes - washingtonpost.com

So explain taxation and outsourcing to me again...

FYI, he is correct that corporations do pay more in taxes than 50% of Americans. Exxon Mobil alone will pay more federal taxes than half of Americans.

I do believe that 2/3rds of corps don't pay taxes... but the other third is paying a ton.
 
FYI, he is correct that corporations do pay more in taxes than 50% of Americans. Exxon Mobil alone will pay more federal taxes than half of Americans.

I do believe that 2/3rds of corps don't pay taxes... but the other third is paying a ton.
Really.. well nancy.. I'd like to pay that much in taxes but hey.... hell I'd also like to get their tax breaks but I am just a lowly middle classer.. since you'd like to jump into the middle of my beef with that pussy perhaps you'd like to answer the question that I posed to him... What is the link between taxation and outsourcing...
 
Really.. well nancy.. I'd like to pay that much in taxes but hey.... hell I'd also like to get their tax breaks but I am just a lowly middle classer.. since you'd like to jump into the middle of my beef with that pussy perhaps you'd like to answer the question that I posed to him... What is the link between taxation and outsourcing...

For companies who turn a profit domestically, the tax rate is 35%. For those companies who turn a profit overseas, the tax rate is only 5.25%. I presume those companies also have to pay local taxes to whatever country they're in. So if the host country's tax rate is less than 29.75%, wouldn't it make sense to set up shop there?

Companies are profit-maximizers, and taxes are an expense they try to minimize. Hence, if keeping my business domestically leads to increased operating expenses in the form of taxes, wouldn't it make sense to move my business overseas (all else being equal)?

Shouldn't the US try to be a little more competitive in its corporate tax rates?
 

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