Positively Un-American Tax Dodges

Multinational firms are moving headquarters to avoid US tax rates. The US corporate tax rate is 35 percent compared to Ireland’s 12.5 percent. About 60 firms have abandoned the United States because it taxes all profits worldwide, notes Alan Sloan for Fortune magazine, and he contends the transfers undermine the US tax base, standards and respect for corporate brands: “Inverters don’t hesitate to take advantage of the great things that make America America: our deep financial markets, our democracy and rule of law, our military might, our intellectual and physical infrastructure, our national research programs, all the terrific places our country offers for employees and their families to live. But inverters do hesitate – totally – when it’s time to ante up their fair share of financial support of our system.” Tax reform, or lack thereof, could be chasing the companies away. Sloan urges companies to report publicly income and taxes paid so that government can make accurate comparisons. – YaleGlobal