31 March 2011

Other Sites

I have post on corporate taxation up at IMF.  An excerpt:
In the first place, it should be noted that there is a distinct difference between the nominal rate and the actual rate. The corporate tax ranges from 15% to 35% of corporate income. As should be obvious, GE isn’t paying anywhere near that. The difference between the nominal rate and the actual rate, then, is explained by two things: loopholes and tax credits.
Incidentally, conservatives will usually scream bloody murder about how high corporate tax rates discourage people from starting businesses in the states, which is true to an extent. However, if a company has offshore headquarters and a good tax attorney, then that company will be able to avoid taxes like GE currently does. It should also be noted that tax avoidance has costs, and cuts into a firm’s bottom line.
The rest is here.

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