More big U.S. companies are reincorporating abroad despite a 2004 federal law that sought to curb the practice. One big reason: Taxes.
Companies cite various reasons for moving, including expanding their operations and their geographic reach. But tax bills remain a primary concern. A few cite worries that U.S. taxes will rise in the future, especially if Washington revamps the tax code next year to shrink the federal budget deficit.
And we have a president that is determined no matter what the damage to raise taxes even higher. Then he has the gall to accuse his challenger of moving jobs overseas. Boy were we sold a bill of goods in 2008.
The U.S. has the highest corporate tax rates in the industrialized world. Punitive taxation and strangling regulation are driving companies out of the U.S.
“A few cite worries that U.S. taxes will rise in the future, especially if Washington revamps the tax code next year to shrink the federal budget deficit.”
In other words raise taxes at you own peril. Oregon’s measures 66 and 67 is a microcosm of the fancily of raising cooperate taxes The actual revenue was off by 30% of the projection as many rich and business moved to Vancouver WA and beyond.
All of which explains why companies have pulled out of California……..and in many cases, taken workers’ jobs with them out of the country.
So profit margin is more important than patriotism?
#5, Is fiduciary responsibility on the part of the directorship a bad thing? Is competition to attract capital unnatural? Do you realize why the Mayflower people (1620s) switched from a communal economy to private ownership?
And, more basically, is the brand of pruning shears more important than the location of the fruit tree? Is my comparison any worse than yours?
Why do folks bother with a Buy American campaign when everyone can pay less for stuff from China?
You reap what you sow.
We are our own worst enemies in that regard.
During California’s 2008 budget crisis, facing a deficit of $16B, a study found that in recent years, 5,000 of CA’s top 25,000 individual taxpayers had left the state, taking combined payments of $8B, half the deficit.
FYI on #5, in many cases it has been shown that Buy American is cheaper. That trent is likely to increase given rising wages in China and increased shipping costs, coupled with stagnant/lower wages in US.