From your link:
Generally, the effective tax rate paid by a business will differ from the statutory rate because of the effect of the graduated rate structures and the deductions and credits that are allowed for things like research & development. A company that can write off nearly all of its R&D is probably not all that interested in a lower statutory rate if their effective rate is in the teens. Effective tax rates can also be affective for analyzing corporate taxes because the statutory rate does not reflect who ultimately bears the burden of the tax. Shareholders bare the burden by lower dividends, consumers bare the burden by paying higher prices and employees also bare the burden with lower salaries, numerous studies say.
So John, what we are saying is right.
From your link:
Scholars have long documented that multinationals are adept at arranging their affairs to undo differences in taxation across countries. By shifting income from high-tax to low-tax countries through transfer pricing, using hybrid entities that are treated as corporations in some countries and flow-through entities in others, stripping profits from high-tax countries through intracompany financing, repatriating under favorable tax conditions, and other tax avoidance mechanisms, multinationals mitigate the impact of being headquartered in a high-tax state. Google’s famous rerouting its offshore rights to
intellectual property through two Irish subsidiaries, a Dutch subsidiary, and a Bermuda entity, lowered its total tax rate on foreign profits to just 2.4%, saving $3.1 billion over the last three years, Bloomberg reported last year.
Now here we see what the dems call evil, tax shelters, such as the Caymans
Again:
“Everyone likes to talk about the tax breaks that General Electric got and the taxes that Google paid last year, but these are outliers. Corporate tax reform needs to happen because marginal rates are too high and that is the rate you use to base your investment decisions on, not the 10% effective rate,” says Douglas Shackelford, a taxation and accounting professor at the University of North Carolina.
Now, when someone says it will discourage investment, this is exactly what we mean.
As for diversifying in a global market, it can help, but as I said, if you dont take care of the home guys, your money ends up overseas.
Thats the other things, that global markets bring, weakening of the dollar can be as well, and as I said, a tipping point investment of foreign monies, as they could go hand in hand.
So, TY for the link
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