From the first Bloomberg article:
Quote:
|
Medtronic does more than half of its $16 billion in annual sales of pacemakers, defibrillators and other devices in the U.S. It manufactures the equipment at this facility, legacy of a defunct U.S. tax break designed to encourage investment on the poverty-stricken island. Yet, Medtronic credits the income to a mailbox in a Cayman Islands office building.
|
Ok. US corporations are sheltering lots of income offshore. So i guess the question is whether we vilify the corporations, or whether we blame our government for the second highest corporate tax rate in the world. Corporate profits are subject to tax rates over 30%, and then any profits passed along to stockholders are taxed as personal income.
Regardless of who the bad guys are, we are faced with a simple pragmatic truth. In a global economy where people and corporations can move wherever they choose, They're going to go to the places with the most favorable regulatory and tax environment. Countries with unfavorable economies will continue to be on the losing end of this migration. Obviously, there are other factors that go into where we live and work, but high taxation will eventually drive productive people away. Or it will at least tempt them to find ways to avoid taxes.
Dave