E Tax Vs. Other Countries

1724 WordsDec 3, 20157 Pages
e Tax Vs. Other countries The United States of America has a marginal corporate tax rate of 35%, but after state taxes it reaches an astonishing 39.1%. That does not include the fact that there are additional taxes at some local levels. This is the third highest corporate tax rate in the world following only the United Arab Emirates, and Chad. It is true our tax rates are very high, and many American companies say that “they are not able to compete globally” because of these taxes. Still, they find a way to succeed through the loophole infested 72,000 plus pages of U.S. tax code. As a corporation if you could pay no income taxes why wouldn’t you? The answer to this would be because you have morals and ethics. No one ever said that making…show more content…
When people do not want to pay the high Chicago taxes the come to Indiana or the suburbs, but where do corporations go to make save their money from being taxed? They go to the countries with the lowest corporate tax rates which include Bermuda, The Cayman Islands, The Bahamas, and Ireland. Bermuda, The Bahamas, and The Cayman Islands have tax rates of 0%, while Ireland has a tax rate of 12.5% which is still significantly lower than most developed countries. Around 70 billion dollars every year are lost by the U.S. from these offshore tax shelter countries. The reason that these small islands choose to make such low tax rates is because they know they can attract the foreign money. They do not have many natural resources, so they make their money from vacationers and tax sheltering large corporations. Almost every large corporation in the United States, from Apple to Pfizer, relies on these islands to escape the taxes they would be paying in The United States. Although they do not actually have offices in these islands, in fact many only have a mailbox, the companies are able to claim taxes there because it is not illegal in the tax code. Also, the money never really makes its way to these small islands they only are there in a digital sense. Most of the products sold, knowledge and
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