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  • No Surprise: U.S. Corporate Taxes Driving Businesses Abroad

    The Wall Street Journal reports that America’s uncompetitive corporate tax code is driving U.S. businesses to relocate their headquarters to other countries. One of the major reasons these businesses are fleeing our shores is taxes.

    Each of the countries the article cites as places where U.S. businesses have moved their headquarters—the United Kingdom and Ireland, for example—is a nation with a lower corporate tax rate than the United States. This is wholly unsurprising, since the U.S. now has the highest corporate tax rate in the developed world. No matter where a U.S. business relocates its headquarters, it would face a lower rate.

    In fact, the U.S. rate—the federal rate combined with the average state rate—is more than 39 percent. The average tax rate in other developed countries is 25 percent. The U.S. is an outlier in the wrong direction. To get competitive again, Congress and the states need to lower the combined rate to 25 percent, or preferably below.

    Losing corporate headquarters is troubling for the economy and for the localities that lose those major parts of their communities. Just ask St. Louis now that Anheuser-Busch is a Belgian company, largely because of tax reasons. Just as troubling, however, is that because of our high corporate tax rate, the U.S. is missing out on new investment from both domestic and foreign-based businesses. The new investments these businesses are making are going to all those other countries with more competitive rates. This is costing our economy jobs every day.

    It is way past time for Congress to correct our uncompetitive corporate tax system. The sooner the better because, as Congress delays, businesses will continue to take their investments and the jobs they create to other, more competitive countries.

    Posted in Featured [slideshow_deploy]

    13 Responses to No Surprise: U.S. Corporate Taxes Driving Businesses Abroad

    1. Blair Franconia, NH says:

      Is it any wonder why Obama wants to drive American businesses abroad? They can't make money here.

    2. zenga says:

      way past time to reduce these rates. yet everyone knows what the liberal MSM and the liberal idiots will say if the tax rate on businesses goes down even as the President and the Congress do nothing to prevent Taxmaggeddon from raising personal tax rates through the roof. Unless we vote the moron liberals out of office permanently, this country's economy is heading over the cliff.

      • sean says:

        Zenga you and the rest of the anti-intellectuals on here need to take your blinders off and educate yourselfs better.The top ten corporate companies in the U.S actually paid only 9% because they can afford better accountants.Yes the corporate tax rate is over 30% but there is such a thing as loop holes and these companies find them and they use the excuse to go over seas for GREEEEEEED!!!!!

    3. Lisa Lineweaver says:

      Thank you conservatives for pointing out the fact that the "U.S. Has the Highest Corporate Tax Rate" time and time again. Now, let's do something about it!

      • sean says:

        top 10 corporations in the U.S paid only 9% last year, How? loopholes the rich corps. have good accountants.

    4. Bobbie says:

      Yep. Obama is giving America exactly what he said. SACRIFICE! When we get an American driven leadership change, it'll be a down hill but meticulous and unfortunate duty. Please don't let him and them continue doing what they're doing.

      Some ignorant woman on a sound bite repeated what the Republicans sounded about all Americans are aware "our rights as individuals come from God and nature. NOT GOVERNMENT!" She claimed they were saying this to the rich man? Well, I'm not a man and I'm not rich and everyone of the Republicans spoke crystal clear to what we poor people wanted to hear. America's unalienable rights come from God and nature and you don't have to be rich to respect what that means but you can't be democrat who'll fabricate, spin and distort this meaning and every positive message they intentionally twist for mind abuse into brainwash! Threats! Some subliminal, some not! Aren't threats a crime? Do democrats have any ethical morals?

    5. PaulE says:

      All of our political leaders need to have a frank and honest talk with the American people. We live in a global economy. This is NOT the world of 1947 through 1960 where, after WWII, where we were the only industrial economy left untouched by the war. We no longer have a monopoly on anything, so we must compete for everything. We are still the greatest nation on earth and we can out innovate anyone. However, part of that competition is providing an attractive tax structure, that will invite investment in our country. We cannot continue this silly notion that seems to be so popular, with some in the political class, that the United States can have the most regressive corporate tax system in the industrialized world and it won't impact our economic growth simply because we're the United States. The reality is money will flow to where the most attractive investment environment exists. There is no reason why that destination can't and shouldn't be the United States.

    6. Smitty says:

      What is interesting is that liberals criticize corporations to death, then moan when those same corporations move overseas…along with jobs. You can't have it both ways, people. Corporations must now compete on a world wide level, in case you forgot.

    7. Mike, Wichita Falls says:

      Romney is at least saying he would cut corporate taxes, so he has the mandate to do so if he wins. It would help if he and Ryan educated people in the next two months that corporate taxes are simply another expense passed onto the consumer.

    8. Personally, I'd like to see corporate taxes go to zero, and capital gains and dividends go up to be the same as the normal tax rates. This would help corporations be more competitive, and it would also allow corporations to eliminate a lot of their accountants and finance types that think up all these weird tax schemes. Corporate taxes are inefficient. Individuals can't get 1000 people working for them to shelter income the way corporations can. Finally, there'd be no way that individuals could be accused of not paying their fair share. Right now, Romney has a 13% effective tax rate because his income is dividends and capital gains from corporations, which already paid taxes on it. With no corporate taxes, he'd get more money, but then pay more taxes on it.

      Another side benefit would be that congress couldn't give corporations tax breaks for windmills or other nonsense.

    9. Stirling says:

      Liberals don't want taxes lowered because once they are (lowered) their policies on Taxes will be shown to be "FALSE." Thus the Myth of taxes will be exposed as a LIE. Reagan did it and it worked, and ever since then the democrats have been trying to undo that success that helped everyone (not just a few).

    10. pcj says:

      Romney understands corporate taxes and how they affect our economy; the partyboy in the White House doesn't have a clue….

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