For Business Profit, Low Tax is Essential

Posted by on Feb 1, 2011 in Business News, Business Taxes, News Feed | Comments Off

Corporate income tax is strange. For every dollar a company makes, they pay a certain tax percentage. For some, it is a big lost but for other companies, it is a big gain. Instead of focusing on the company themselves, some companies use the tax system to increase their profits. Some companies move their income overseas to pay fewer taxes than other competitors. Some companies have low effective tax rates while others face limited reductions on taxes. It takes an average of three years for companies to present their tax rates in annual reports.

Because the corporate taxes in the United States of America are among the highest in the world, it is also the highest among industrialized countries. According to Roberto Williams of the Tax Policy Center in Washington, “If you look at the effective tax rate — the actual tax rate that companies pay after all the adjustments they make — we’re much closer to the center of the pack.” Some companies do not face the full 35% corporate tax rate. Different tax write-offs and tax breaks range differently with each company.

During President Barack Obama’s State of the Union, he emphasized his idea of limit loopholes so that everyone can be treated fairly. Keeping watching our news feed for these updates.

Listen/read to the entire article here: NPR.org