Mike
PR Addict
I did some investigating..Burger Kings effective tax rate in 2013 was 27.5 and Tim Horton's in Canada was 26.8. While our tax rate is higher (different state to state because each state is different and these rates reflect state and federal tax together) our tax laws offer exemptions. In order to reform the tax codes we would lose exemptions but would be taxed a flat rate thereby making the taxes much easier to compute. To state our corporate taxes are high is true, one of the highest, however it is more complicated because of the loop holes and exemptions. The very highest I found was in Saudi Arabia which taxes oil and gas companies at 85%, Saudi companies at 0% and all others at 20%. Doesn't pay well to own a gas or oil company!! I did notice that many countries have been lowering their corporate taxes quite a bit in the last few years but the U.S. has remained the same since 2006. So I guess it isn't Obama's fault!!!
Anyway I thought all this was quite interesting. I would imagine the reason we won't be seeing any major tax reform is because many companies (large corporations) have learned to use the exemptions and loop holes to keep their taxes low or sometimes zero. If it were low but a flat rate they would end up paying more! I'm sure our lawmakers benefit with they way it is also!!
I couldn't find anything that suggested allowing the money to be returned to the U.S. tax free.
Its not really the effective tax rate that matters, its the fact that the USA is the only country that taxes the WORLDWIDE income of US companies. So that a US company's factory in Germany that sells to a French customer has to pay USA taxes on the proceeds. No other country including Canada does this. Time for tax reform.......