The US Has the Highest Share of Employees in Low Wage Work

[finehoe]

This is because most companies prepare two different sets of financial statements: one for reporting purposes and one for tax purposes.

In other words, corporations just make shit up.

[BridgeTroll]

Yes now the highest in the world.

Lies.

Was bill right?  This came from Huffpo so it must be true...

U.S. Corporate Tax Rate To Be Highest In The Developed World

Posted: 03/30/2012 3:31 pm Updated: 03/31/2012 11:47 am



* Japan's corporate tax rate dropping to 38.01 pct on Sunday
* Combined U.S. 39.2 pct rate will be developed world's highest

By Patrick Temple-West and Kim Dixon

WASHINGTON, March 30 (Reuters) - The United States will hold the dubious distinction starting on Sunday of having the developed world's highest corporate tax rate after Japan's drops to 38.01 percent, setting the stage for much political posturing but probably little tax reform.

Japan and the United States have been tied for the top combined, statutory corporate rate, with levies of 39.5 percent and 39.2 percent, respectively. These rates include central government, regional and local taxes.

Japan's reduction , prompted by years of pressure from Japanese politicians hoping to spur economic growth, will give that country the world's second-highest rate.

This has triggered complaints from U.S. politicians and business groups.

"This isn't an April Fool's Day joke," said Senator Orrin Hatch, the leading Republican on the Senate Finance Committee.

"Every industrialized country around the globe understands that tax rates can determine whether or not businesses succeed or fail," Hatch said in a statement.

Across most of the political spectrum there is broad agreement that the U.S. corporate tax rate is too high, though few corporations actually pay that rate because the loophole-riddled tax code gives them lower "effective" rates.

Republicans and Democrats agree that the tax code needs work. It has not been thoroughly overhauled in 25 years.

In February, President Barack Obama proposed a corporate tax reform blueprint that included a 28 percent top rate.

Republican presidential hopeful Mitt Romney has said he wants to cut the corporate rate to 25 percent.

COMPETITIVE EDGE

The average 2012 corporate tax rate for the 34 developed countries is 25.4 percent, according to the Organization for Economic Co-operation and Development.

"As countries such as Canada and the United Kingdom have moved to reform their tax systems and lower rates to encourage economic growth, America's inaction puts American worldwide companies at a competitive disadvantage and threatens our economic recovery," said Bruce Josten, an official at the U.S. Chamber of Commerce.

Some U.S. companies pay close to the 35 percent top corporate tax rate; some pay nowhere near that, thanks to tax breaks that let them lower their "effective" tax rates.

Of the 30 companies in the Dow Jones industrial average, 19 told shareholders their effective rate for their 2011 fiscal years, mostly ending Dec. 31, was below Obama's proposed new tax rate, according to a Reuters analysis of securities filings.

Of these companies, three - telecom company AT&T, Bank of America, and insurance company Travelers - posted a tax gain.

For the index's other 27 companies, effective rates reported ranged from 2.7 percent for telecom giant Verizon Communications to 43.3 percent for energy group Chevron Corp.

These figures are taxes for shareholder accounting but not necessarily what was paid last year because Congress lets companies defer parts of their income tax for future years.

http://www.huffingtonpost.com/2012/03/30/us-corporate-tax-rate_n_1392310.html

[finehoe]

Reality Check: Effective U.S. Corporate Tax Rate Much Lower Than Most Other Developed Nations

Republicans have been kvetching today about the fact that, as of Sunday, the U.S. will have the highest statutory corporate tax rate in the world following a scheduled cut in Japan’s corporate tax. “The United States is a world leader in countless ways. ‘World’s Highest Taxes’ is a title we should give up as soon as possible,” wrote Sen. John Barrasso (R-WY) in a Fox News op-ed.

“This isn’t an April Fool’s Day joke; as of April 1, the United States of America will have reached the inauspicious position of having the highest corporate tax rate in the developed world,” said Sen. Orrin Hatch (R-UT) in a statement “I want America to be number one in many things, but having the highest corporate tax rate is definitely not one of them.”

This is constant refrain from Republicans, who then blame the supposedly high U.S. corporate tax rate for discouraging job creation. But as we’ve noted time and time again, while the U.S. has a high statutory corporate tax rate (meaning the rate on paper), U.S. corporations actually pay incredibly low taxes due to the ever-proliferating loopholes, credits, and deductions in the tax code and the use of overseas tax havens.

U.S. corporate taxes that were actually paid (the effective rate) fell to a 40 year low of 12.1 percent in fiscal year 2011, despite corporate profits rebounding to their pre-Great Recession heights. The U.S. both taxes its corporations less and raises less in revenue from corporate taxes than its foreign competitors.

Politico’s Ben White also pointed out that Japan has a value added tax, so it isn’t actually true that the U.S. will have the highest corporate tax rate on Sunday. As billionaire investor Warren Buffett has said, “it is a myth” that U.S. corporate taxes are high. “Corporate taxes are not strangling American competitiveness,” Buffett added.

Of course, it is theoretically possible to lower the U.S. corporate income tax rate while simultaneously raising revenue to help reduce the federal deficit by closing loopholes and cracking down on tax havens. But Republicans have absolutely no interest in that.

[BridgeTroll]

There are plenty of republicans who are for closing "loopholes".  The problem is the definition... to some "loopholes" are incentives or tax breaks to help with foriegn competitors.  For example...

http://www.accionusa.org/home/small-business-loans/green-business-resources/green-business-resources.aspx

What incentives and regulations are available for green businesses?
Green Business Incentives:

There are green tax incentives and green business tax credits for businesses of all sizes.

At the federal level, examples include an energy-efficient commercial buildings tax deduction, a business energy reduction tax credit, an energy-efficient appliance tax credit for manufacturers, and a new energy-efficient tax credit for green-savvy builders.
At the state level, many are eager to attract renewable energy companies to their region, and offer tax breaks to get them there. Washington State, for example, charges no sales tax on renewable energy equipment produced or sold there. And some forward-thinking cities are beginning to offer "density bonuses" and green building incentives to developers and builders to encourage sustainable land use (From "Get Tax Incentives for Green Living." )

There are thousands like this.  A smart corporation finds all the incentives or "loopholes they can find to lower their tax rate... just as you do on your income tax filing... 

[finehoe]

There are plenty of republicans who are for closing "loopholes". 

Who are these Republicans, and which "loopholes" have they suggested closing?

[BridgeTroll]

Me... all of them... then lowering the corporate tax rate to be in line with the rest of the world.

[finehoe]

... all of them...

BT's been possessed by Sarah Palin!!

[BridgeTroll]

... all of them...

BT's been possessed by Sarah Palin!!

That even scares me!

[fsquid]

This is because most companies prepare two different sets of financial statements: one for reporting purposes and one for tax purposes.

In other words, corporations just make shit up.

No, they have to produce GAAP financial statements to investors and also have to have a set using the tax rules so they can get a jist on what their tax bill is going to look like.