Since 2009, at least 10 U.S. public companies have moved their incorporation address abroad or announced plans to do so, including six in just the last year or so, according to a Wall Street Journal analysis of company filings and statements. Most all have cited the cost savings from less taxes as the big reason for their moves.
Here are four of the most recent:
- Eaton Corp. - a 101-year-old Cleveland-based MANUFACTURER
- Ensco International Inc. - offshore oil rigs
- Rowan - offshore oil rigs
- D.E. Master Blenders 1753 - a Sara Lee spinoff
To expand their economies and increase employment, most developed countries are restructuring their corporate tax systems and reducing their corporate tax rates. To date, the United States has taken an opposite approach that has yielded one of the most complex and uncompetitive corporate tax structures in the industrialized world. Its effects are troublesome: outsourced economic activity; lost domestic investment, growth, and jobs; and an eroded corporate tax base.
Estimates of U.S. jobs lost due to the current corporate income tax range from 200,000 to 3 million, but the consensus is that many companies terminate employees because the current corporate tax structure cuts so extensively into their profits that the companies move abroad.
During the 2000s, major multinational corporations reduced U.S. jobs by 2.9 million while increasing overseas employment by 2.4 million.
As individuals ultimately bear the burden of any corporate tax, the United States’ poorly constructed corporate code also increases the tax burden on workers, consumers, and investors.
If corporations respond by reducing compensation or firing workers, the impact of the tax hits the employees. If they raise prices, the impact falls on the consumers who buy the product. And if they take a reduction in profits, the falling stock value lowers the value of various investment funds on which millions of Americans depend for retirement and other income.
The United States, at least theoretically, taxes companies on their global profits. But taxes on overseas income are deferred until the profits are sent back to the United States.
So, the USA is actually making less money from high corporate taxes than it would if it lowered their corporate tax structure and allowed companies to bring their profits back into the USA and pay much less in taxes.
Very similar to individual Income Taxes . . . when the tax rates are lowered, each individual pay less in taxes .. BUT .. their extra money in their pocket goes into spending and the economy gets better so that there are more people hired and working ... which results in more people paying taxes . . which results in more money going into the government treasury!
Anyway . . I am actively Trading and I don't think I'll be changing your beliefs, no matter how many facts I send your way.
Have a great! day, |
