Monday, February 14, 2011

Corporate Taxes and Why Many US Businesses are Going Overseas



A recent report by the American Enterprise Institute for Public Policy Research has shed some light on why large businesses are finding it more profitable to shut down their plants and move them to other countries.

Whereas the report noted that the United States' statutory federal corporate tax rate, at 35%, is the highest of all monitored countries, a more important indicator is the higher than average effective average tax rate (EATR.)

In the mid 90s, the US had a lower than average EATR of 29.2% which was quite competitive with the average of 30.2% for most other countries monitored.  Since this time, though, the average EATR for all other countries has dropped to a low 20.6% while the US has stayed at 29% (both 2010 rates).

In short, why wouldn't businesses want to move their plants to other countries where they can save an average of 10% on the taxes they pay out? via tax-news

5 comments:

  1. Wow, that's just rediculous...why would any business stay in the US. What is the Govt thinking too...all that lost revenue, they should match other countries, less revenue is better than no revenue!

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  2. Makes sense but very un-patriotic but is there such a thing in business.

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  3. Maybe you are not a tax professional but your blog is useful and can help your readers..

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  4. Suppose these advices are also viable in Finland? Hope so... :P

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