Countries with a higher corporate income tax rate

[mad_fan]

than the US...currently 35%...

Name them...

[slorch]

the beauty of that 35% rate is tax lawyers and accountants actually serve a purpose in making the most of deductions and credits.

If anyone thinks companies pay 35% on their net profit, I have a lake front cabin to sell them up in Hale County...:D

[CoveMom]

So.....you are saying when I open my business, I should eat the higher insurance costs and go sole-proprieter?

[mad_fan]

So.....you are saying when I open my business, I should eat the higher insurance costs and go sole-proprieter?

I'm saying you might consider opening shop in another country...:eek:
You can still live here...:D

[mad_fan]

the beauty of that 35% rate is tax lawyers and accountants actually serve a purpose in making the most of deductions and credits.

If anyone thinks companies pay 35% on their net profit, I have a lake front cabin to sell them up in Hale County...:D

And we are the only country with deductions and credits...;)

[Firebird]

Very few. Japan's is very high. In fact, among the OECD only Japan's is higher. And that is going to have an impact on American firms' competitiveness on the global scale. European integration has done wonders for their firms competitiveness. We need to think about some serious tax reform and futher integration to keep up.

However, the United States' coroporate tax rate is still very low as a percentage of GDP in comparison with the EU and other developed countries.

[mad_fan]

Very few. Japan's is very high. In fact, among the OECD only Japan's is higher. And that is going to have an impact on American firms' competitiveness on the global scale. European integration has done wonders for their firms competitiveness. We need to think about some serious tax reform and futher integration to keep up.

However, the United States' coroporate tax rate is still very low as a percentage of GDP in comparison with the EU and other developed countries.

You need to elaborate here...
I can read 5 different things into that sentence...
And probably still miss your point...;)

[mad_fan]

Very few. Japan's is very high. In fact, among the OECD only Japan's is higher. And that is going to have an impact on American firms' competitiveness on the global scale. European integration has done wonders for their firms competitiveness. We need to think about some serious tax reform and futher integration to keep up.

However, the United States' coroporate tax rate is still very low as a percentage of GDP in comparison with the EU and other developed countries.

btw...didn't jap lower the rate to 30% in 2007???

[Firebird]

btw...didn't jap lower the rate to 30% in 2007???

The Japanese might very well have. The latest report I had left over from my econ class was from 2006, so you could be right. It would have been a smart move on their part. Cutting corporate tax rates is often a great way to encourage investment.

With regards to tax as a percentage of GDP, that's really what I meant...that although the U.S. corporate tax rate is very high, the percentage of corporate income tax as a share of US GDP is very low in comparison with other industrial countries. It's less than 3%, I believe. Paradoxically, the high rates are resulting in less revenue collection because of the tremendous incentive to shift profits. Corporate tax revenue has increased over the past 4 years or so, but companies find ways to pass the profits off to individuals, who then pay a lower tax rate.

[Firebird]

OK, I just looked up Japan on The Economist's site. The standard national corporate rate is indeed 30% but once you include local taxes the effective corporate rate is 40.9%. That's how we figure the US's rate too, as states levy various rates over and above the national level of 35%. In the States ours averages out to around 40%. Depending on your locale that may vary quite significantly.

[slorch]

I think the interesting thing, if reported, would be to know what the actual taxes collected were in relation to the net profits of American corporations.

I would like to know what was actually collected by the IRS from individual taxpayers on their gross income by percentage, respective to the tax bracket they fell in.

i think it would surprise some people. Alot.

[mad_fan]

I think the interesting thing, if reported, would be to know what the actual taxes collected were in relation to the net profits of American corporations.

I would like to know what was actually collected by the IRS from individual taxpayers on their gross income by percentage, respective to the tax bracket they fell in.

i think it would surprise some people. Alot.

That number will fall a bit next year...
When I do more bartering...and cash only service calls...:)

[mad_fan]

I think the interesting thing, if reported, would be to know what the actual taxes collected were in relation to the net profits of American corporations.

I would like to know what was actually collected by the IRS from individual taxpayers on their gross income by percentage, respective to the tax bracket they fell in.

i think it would surprise some people. Alot.

As for this one...
I do corporate tax returns...
The taxable income has to be reconciled back to their book income...
And with the current state of undo harassment of corporations (large and small)...
There is little room to fudge...
Every corporation I deal with has atleast one account called 'non-deductible expense'...
It's one of many reconciling items between book income and tax income...but one that the IRS looks for...and expects to see...
And the IRS has an idea of the range it should fall in for a given size corp...
There are far fewer ways to cheat as a corp...and get away with it...than other entities...

[slorch]

As for this one...
I do corporate tax returns...
The taxable income has to be reconciled back to their book income...
And with the current state of undo harassment of corporations (large and small)...
There is little room to fudge...
Every corporation I deal with has atleast one account called 'non-deductible expense'...
It's one of many reconciling items between book income and tax income...but one that the IRS looks for...and expects to see...
And the IRS has an idea of the range it should fall in for a given size corp...
There are far fewer ways to cheat as a corp...and get away with it...than other entities...

I work for a fortune 50 company, and even at my low level:D I receive direction on inventories and other accounting related to Sarbanes-Oaxley(sp) Act. It is our favorite legislative piece ever done...wouldn't you agree?;):D

[mad_fan]

I work for a fortune 50 company, and even at my low level:D I receive direction on inventories and other accounting related to Sarbanes-Oaxley(sp) Act. It is our favorite legislative piece ever done...wouldn't you agree?;):D

The only thing that is missing from that bill...
McCain's name in the title...:puke