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TAX PROOFING YOUR BUSINESS
“The U.S. has the highest corporate tax rate in the developed world. After Japan lowered its tax rate last year, the combined federal and average state tax rate of 39.2 percent in the U.S. was the highest of any nation in the Organization for Economic Co-operation and Development. Some mega-corporations pay billions of dollars every year in federal and state taxes. In its most recent fiscal year, Exxon Mobil reported $31 billion in corporate income tax expenses. Some large corporations, on the other hand, paid no taxes at all and even received tax benefits…” Source: Companies Paying the Most (and Least) Taxes – 24/7 Wall St.
Due to the high corporate taxes, “Microsoft Corp., Apple Inc., Google Inc. and five other tech firms now account for more than a fifth of the $2.10 trillion in profits that U.S. companies are holding overseas, according to a Bloomberg News review of the securities filings of 304 corporations. The total amount held outside the U.S. by the companies was up 8 percent from the previous year, though 58 companies reported smaller stockpiles.” Source: U.S. Companies Are Stashing $2.1 Trillion Overseas to Avoid Taxes – Bloomberg Business
do you think U.S. companies should be allowed to keep their profits in other countries to avoid paying taxes? Give a short defense for why or why not in 2 or more paragraphs, and reply to another student’s opinion.
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