March 29, 2024, 08:30:38 AM *
Welcome, Guest. Please login or register.

Login with username, password and session length
News: NEW CHILD BOARD CREATED IN THE POLITICAL SECTION FOR THE 2016 ELECTION
 
   Home   Help Login Register  
Pages: 1   Go Down
  Print  
Author Topic: US Tax Death Spiral and How to Fix...  (Read 2085 times)
0 Members and 1 Guest are viewing this topic.
WhiskeyGirl
Monkey All Star Jr.
****
Offline Offline

Posts: 7754



« on: September 01, 2014, 08:32:23 PM »

Quote
America’s current tax system adversely affects the US economy in several ways. The extra tax that US firms pay if they repatriate profits raises their cost of capital, thus reducing their ability to compete in international markets. Foreign firms can also outbid their US counterparts in acquiring new high-tech firms in other countries. And when a foreign firm acquires a US company, it pays US tax on the profits earned in the US but not on the profits earned by that firm’s other foreign subsidiaries, thus lowering its total tax bill.
A shift to a territorial system of taxation would remove the disadvantages faced by American multinational corporations and encourage them to reinvest their overseas profits at home, increasing US employment and profits. Because only a small share of overseas profits is now repatriated, the US government would lose very little tax revenue by shifting to a territorial system. A few years ago, the US Treasury Department estimated that shifting to a territorial system would reduce corporate tax revenue by only $130 billion over ten years.
It would also be desirable to reduce the US corporate tax rate gradually, bringing it closer to the 25% OECD average. That, too, would encourage more repatriation of overseas earnings.


Read more: http://www.praguepost.com/viewpoint/41176-bringing-it-back-home#ixzz3C7Bu5xjK
Logged

All my posts are just my humble opinions.  Please take with a grain of salt.  Smile

It doesn't do any good to hate anyone,
they'll end up in your family anyway...
Pages: 1   Go Up
  Print  
 
Jump to:  

Use of this web site in any manner signifies unconditional acceptance, without exception, of our terms of use.
Powered by SMF 1.1.13 | SMF © 2006-2011, Simple Machines LLC
 
Page created in 7.295 seconds with 19 queries.