Wednesday, November 15, 2017

U S Corporate Tax Rate Too High

If you pay taxes, that is. Why would the parent company of the local Alkermes facility return to its original home, Cambridge Massachusetts? The corporate tax rate in its current home, Ireland, is 12.5% which is still lower than the proposed 20% being considered by congress. For every $1 million of income a tax savings of $75,000 would be lost. Would any reasonable financial adviser recommend a move back to the U S from the Cayman Islands if: The Corporate Tax Rate in Cayman Islands stands at 0 percent thus saving $200,000 for every $1 million invested. Many large corporations don't have to move overseas because they have gamed our tax system and pay little or no taxes (o%) regardless of income. Paul Hunter

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