Tax Dodge Myths
May. 12th, 2009 03:32 pm![[personal profile]](https://www.dreamwidth.org/img/silk/identity/user.png){kind=small}
apharhttp://www.washingtonpost.com/wp-dyn/content/article/2009/05/10/AR2009051001961.html
Myth:Aided by those overpaid lobbyists, American multinationals are taxed lightly -- less so than their foreign counterparts.
Reality: Just the opposite....
Myth: When U.S. multinationals invest abroad, they destroy American jobs.
Reality: Not so. ... for every 10 percent increase in U.S. multinationals' overseas payrolls, their American payrolls increase almost 4 percent.
Myth: Plugging overseas corporate tax loopholes will dramatically improve the budget outlook as multinationals pay their "fair" share.
Reality: Dream on.
Including state taxes, America's top corporate tax rate exceeds 39 percent; among wealthy nations, only Japan's is higher (slightly). However, the effective U.S. tax rate is reduced by preferences -- mostly domestic, not foreign -- that also make the system complex and expensive. ... Obama would have been better advised to cut the top rate and pay for it by simultaneously ending many preferences. That would lower compliance costs and involve fewer distortions. But this sort of proposal would have been harder to sell. Obama sacrificed substance for grandstanding.
Myth:Aided by those overpaid lobbyists, American multinationals are taxed lightly -- less so than their foreign counterparts.
Reality: Just the opposite....
Myth: When U.S. multinationals invest abroad, they destroy American jobs.
Reality: Not so. ... for every 10 percent increase in U.S. multinationals' overseas payrolls, their American payrolls increase almost 4 percent.
Myth: Plugging overseas corporate tax loopholes will dramatically improve the budget outlook as multinationals pay their "fair" share.
Reality: Dream on.
Including state taxes, America's top corporate tax rate exceeds 39 percent; among wealthy nations, only Japan's is higher (slightly). However, the effective U.S. tax rate is reduced by preferences -- mostly domestic, not foreign -- that also make the system complex and expensive. ... Obama would have been better advised to cut the top rate and pay for it by simultaneously ending many preferences. That would lower compliance costs and involve fewer distortions. But this sort of proposal would have been harder to sell. Obama sacrificed substance for grandstanding.
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no subject
Date: 2009-05-12 08:35 pm (UTC)no subject
Date: 2009-05-12 08:41 pm (UTC)you, as a tax expert, should be more proactive! :-)