USA Today recently reported that 20 of the United State’s
best known companies paid 0% in taxes in their second quarter. This revelation
has brought to light many of the flaws that exist in the nation’s corporate tax
system.
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| Tax Rates by Country |
Corporate tax rates have long been the highest of anywhere
in the world at a whopping 35%. When you add on that so many big companies
don’t pay corporate taxes because they know how to work the system and “cheat”
in legal ways, the severity of the problem is even more evident.
Big companies included on the non taxpaying list include:
l Merck
l General
Motors
l Seagate
l Public
Storage
l Kimco
Realty
l Citrix
Systems
l First
Solar
l Thermo
Fisher
These companies get away with not paying taxes in a variety
of ways. Sometimes, they make it so that they qualify for more tax credits than
they do payments. Others will actually relocate their headquarters to an
offshore location to circumvent tax laws.
Many financial experts think the answer is for all companies
to pay a lower tax, while others argue that doing away with corporate income
taxes completely would solve the problem.
In spite of all of the ideas being thrown around, a solution
is far out of reach. Until then, all companies can do is hire knowledgeable
financial services companies to help them to make the best decisions possible
and to avoid taking a major hit due to corporate tax rates.
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