Domestic Companies Move Wealth Offshore for Lower Taxes

This article describes the growing exodus of domestically conceived or originated companies moving their existence or taxable operations to foreign countries for tax advantage purposes. It also briefly suggests some areas for improvement, and not surprisingly a lowering of the current approximate 35% corporate tax rate is one of the suggestions.

It is estimated that companies are storing wealth offshore, worldwide in an amount of approximately 2.1 trillion dollars and refusing to repatriate that wealth because of the high corporate tax rate imposed upon repatriation. The source of the impediment is clear as in 2005 when the feds declared a tax holiday on repatriated funds companies brought approximately $359 billion back home to the U.S. Current corporate tax policy is clearly limiting the amount of wealth held in the U.S. and because the wealth sits in foreign jurisdictions indefinitely the U.S. receives no benefit at all from the money. A lowering of the corporate tax rate would prompt repatriation and increase tax potential of income on the approximate 2.1 trillion dollars overseas which sits currently at $0.00. A lower corporate tax rate may also stop the exodus before it begins.

More about companies storing wealth offshore

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Five Stone Tax
by Five Stone Tax

Five Stone Tax is America’s trusted tax adviser, offering full-service tax solutions with the goal of making sure all of our clients pay the lowest amount of taxes legally possible. As the most effective tax representation company in America, our team consists of the best Tax Attorneys, Enrolled Agents, case managers, and administrators in the industry.

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