The problem with that statement is that it is very deceptive. China has a top corporate rate of 25% vs. 35% in the U.S. it is true. But China has a top personal tax rate of 45% vs. 35% in the U.S. Plus China has a top VAT of 17%. Cuba has a top personal tax rate of 50% plus a VAT that is as high as 20% on some items. Plus roughly half the corporations in the U.S. and the majority of foreign companies doing business in the U.S. pay no income taxes. Is that true in China and Cuba?
No 'buts' allowed. We're talking about corporate tax rates, not personal income tax rates.
There's no deception in what Palin said. The US has the highest corporate tax rate in the world. Sure, some mega corporations have the wherewithal to avoid paying those taxes, but what about the rest?
If you've ever run a business, you know how much time, effort, and money is spent complying with our federal tax regime. Most businesses cannot escape it. The net effect is less earned capital on hand to spend on more staff, equipment, supplies, infrastructure, etc. It makes relocating jobs offshore very attractive to those companies who can manage it.
Ask yourself why foreign firms would bring their operations to the US when our corporate tax rates are higher than their home countries'? Makes no fiscal sense, so they don't do it.
And why would an American firm that already has much of their operation parked safely offshore, bring those jobs back home, when they'll be penalized for doing so?
This is the business logic that you're failing to note. Instead, you seem to be trying to obliquely make the liberal class warfare argument that corporations are simply greedy money-grubbers. Is that it? Is that what you're trying to say? If not, please explain.
Darkwing, scan his history and see if you agree. If so, VK his azz.
Simple, American based corporations deduct foreign taxes, and may get a refund on U.S. federal taxes. That's hoe major corporations don't pay taxes as long they are based in the U.S. Have a problem with that? Change the tax codes....
Oh BTW....Do you like kitties? Class envy give me the hives.
Please let me know if you want ON or OFF my Viking Kitty/ZOT ping list!. . . don't be shy.
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Where is your source on this statement? And explain why you think increasing taxes on corporations enables them to create more jobs.