Taxing America Inc: Pfiasco

Taxing American Inc: Pfiasco

As discussed in class, many US companies take advantage of lower tax rates in other nations by establishing offices or headquarters in countries that have a lower tax rate than the US' 35% which hasn't been changed since the 80's. The Obama administration has been cracking down on companies who are skipping out on US taxes, causing many companies that take advantage of foreign corporate tax rates millions of dollars, such as the pharmaceutical company Pfizer. Large companies like apple are only paying a small percentage of what the US tax rates expect. Interestingly, as a country the United States has been trying for years to keep businesses from leaving the country; but, the nation's policy on corporate taxation makes a far better argument for american companies to move locations to friendly country's like Ireland. If the US government continues to strengthen regulations on corporations who are using international tax rates than I believe there will be far more companies to leave the United States. With other nations staying competitive in taxation, the United States can't expect that companies won't leave; especially when so many companies only need people and wifi to run, it wouldn't be hard for them to leave the US.