Question
Asked Sep 18, 2019
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The U.S. corporations that have successfully used the inversion (see page 221) to minimize their U.S. federal income taxes, might find the lowering of the maximum U.S. federal income tax rate from 35% to 21% a sufficient reason for repatriation. [Note: The rate changes are accurate.] True or False?

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Expert Answer

Step 1

The tax is a unilateral payment made from the public towards the government for various reasons. The companies need to pay the profit taxes and the individuals need to pay the income taxes, property taxes and professional taxes etc. the taxes constitutes the major part of the income of the government which is then used for the public expenditures.

Step 2

Most of the corporations in the US economy use many inversions to minimize their US federal income taxes and the main reason behind the use of the inversions is the higher tax rate. The corporations were basically charged with a higher tax rate of 35 perc...

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