I need to study the corp tax stuff more. Talking heads on bloomberg keep saying we are low in the world. Small business folks I know though say taxes have now outpaced labor as their biggest expense. If my employer keeps tanking, I may learn first hand what the truth is...lol
The U.S> Corporate tax rate is close to 40% and that is for income derived from inside and outside the country. So, Very few global corporations actually repatriate any income NOT made in the U.S. All those foreign markets KEEP that money. The corporations invest it in new plants, research and infrastructure because if brought those funds back they would pay whatever rate on the income in the foreign country and then pay an additional 38% to the Federal Leviathan.
Also, many corporations are purchasing foreign competitors and officially moving their base of business offshore to avoid the onerous taxes here.
Walgreens just announced they are buying a subsidiary in England and MOVING their official business their. They will save hundreds of millions a year in taxes and fees with a simple paper work filing.
Several Fortune 500 companies have done the same. EATON is another. They are based in Cleveland, but are registered at a new subsidiary in Ireland saving millions per year.
Small business, the engine of a growing economy, can not afford to offshore their corporation as they are always local. They pay the real corporate tax.