At Walgreen, renouncing corporate citizenship

[NotNow]

"At least 44 American companies have reincorporated abroad or laid plans to do so, including 14 since 2012, according to Bloomberg. The U.S. corporate tax rate is the highest among developed nations."

Elections have consequences.   

[NotNow]

"extra expatriate charge"

Would you mind letting us in on what your definition of this would be?

http://econlib.org/library/Enc/Protectionism.html

[finehoe]

The U.S. corporate tax rate is the highest among developed nations."

"... the Government Accountability Office, examined corporate tax returns to determine the taxes corporations actually pay. It found that in 2010, profitable corporations based in the United States had an effective federal tax rate of 13 percent on their worldwide income, 17 percent including state and local taxes."

http://gao.gov/products/GAO-13-520

Elections have consequences.

So true.  So if you want your taxes to be higher to make up for corporations that aren't paying nearly the same rate you are, keep voting the way you do.

[NotNow]

The U.S. corporate tax rate is the highest among developed nations."

"... the Government Accountability Office, examined corporate tax returns to determine the taxes corporations actually pay. It found that in 2010, profitable corporations based in the United States had an effective federal tax rate of 13 percent on their worldwide income, 17 percent including state and local taxes."

http://gao.gov/products/GAO-13-520

Elections have consequences.

So true.  So if you want your taxes to be higher to make up for corporations that aren't paying nearly the same rate you are, keep voting the way you do.

If you want to keep seeing American business wither on the vine, keep voting the way you do.
I will keep voting the way I do.  I am opposed to the income tax system at this point.  Once again, the Founding Fathers were spot on. 

[bill]

The U.S. corporate tax rate is the highest among developed nations."

"... the Government Accountability Office, examined corporate tax returns to determine the taxes corporations actually pay. It found that in 2010, profitable corporations based in the United States had an effective federal tax rate of 13 percent on their worldwide income, 17 percent including state and local taxes."

http://gao.gov/products/GAO-13-520

Elections have consequences.

So true.  So if you want your taxes to be higher to make up for corporations that aren't paying nearly the same rate you are, keep voting the way you do.

If you want to keep seeing American business wither on the vine, keep voting the way you do.
I will keep voting the way I do.  I am opposed to the income tax system at this point.  Once again, the Founding Fathers were spot on.

yawn.  you literally have no idea what system of economics or taxation the Founding Fathers believed in do you?

No I do no not. Please educate me Mr. Wizard. Please also include your research on Global warming/cooling/climate change etc.

[NotNow]

So your definition of "extra expatriate charge" is...a tariff?  You are advocating protectionist tariffs, just to be clear?  And a ban on foreign corporations ability to contribute to political causes in the U.S., right?

[NotNow]

Interesting (defensive) response.  You called for a "extra expatriate charge".  I asked you what you meant by that term.  You posted two articles, one advocating "protectionism" and one advocating bans on foreign based corporations participating in US political causes.  I then asked if your posting constituted your explanation for the term "extra expatriate charge".  And you accuse me of not being able to read, not knowing your name, calling for higher taxes, and calling for reduced taxes for foreign corporations. 

The message that I am getting is that you don't really want to discuss this.  I won't bother asking you for clarification of your statements again.

[Jumpinjack]

Moving our business immediately to another pharmacy corporation - currently a US one.

[coredumped]

Moving our business immediately to another pharmacy corporation - currently a US one.

Likewise here. There's also a fair bit of mom and pop pharmacy's around. Granted, they don't sell motor oil like Walgreens and CVS, but they do prescriptions just fine.

[finehoe]

http://fortune.com/2014/07/07/taxes-offshore-dodge/

[NotNow]

Excellent article!  Thanks FH.  The author actually offered some viable solutions.  Let's see if any of them are adopted.  (I doubt it.)

[fsquid]

states use tax breaks to 'woo' US companies from other states all the time. Congress does it to encourage (or discourage) certain behaviors almost constantly.

Why then do we act surprised when other people/states/countries do the same thing?

[NotNow]

meh-

The 35% rate is part of the problem.  If corporations are "really" paying !8% - 20%, then why don't we just put the tax rate there?   Because the government wants to be able to dictate who pays 35% and who pays 10%.   Just set the corporate rate at 20%, without any loopholes or favoritism.  Attempts at domestic protectionism will be met by retaliatory moves by other governments.  But I wouldn't be opposed to a more judicious use of tariffs against those that use protectionist laws against US corporations.

[fsquid]

meh-

The 35% rate is part of the problem.  If corporations are "really" paying !8% - 20%, then why don't we just put the tax rate there?   Because the government wants to be able to dictate who pays 35% and who pays 10%.   Just set the corporate rate at 20%, without any loopholes or favoritism.  Attempts at domestic protectionism will be met by retaliatory moves by other governments.  But I wouldn't be opposed to a more judicious use of tariffs against those that use protectionist laws against US corporations.

Corporations are "really" only paying 18-20% because for tax purposes they make X here in the US and the rest overseas where the rates are lower making for an effective rate of X.  My company monitors this on a monthly basis and it is usually one of the first analyst questions on our earnings calls.

[Traveller]

Another reason many corporations paid little to no U.S. income tax during the recession was a provision known as "bonus depreciation".  In order to stimulate capital investment, Congress allowed companies to deduct 50 to 100% of the cost of property placed in service between 2008 and 2013.  Normally, such property would be depreciated over its useful life--5 to 10 years in most cases.

As a result, corporations that were making millions in book profits were showing very little taxable income, and in many cases realizing a tax loss, one that could be carried back to prior years in order to claim refunds.  For financial reporting purposes, they would have to record a deferred tax expense and deferred tax liability to account for the loss of future depreciation deductions, so their effective tax rate wouldn't be impacted.  But from a cash standpoint, their tax rate was nil.  Journalists tend to pick whatever tax rate fits the narrative of their article.

The bonus depreciation provisions worked exactly as Congress intended.  Heck, they're discussing extending them as I type this.