Reform America
We the People demanding a voice.
About Us | Mission Statement |Statement of Purpose
subglobal1 link | subglobal1 link | subglobal1 link | subglobal1 link | subglobal1 link | subglobal1 link | subglobal1 link
subglobal2 link | subglobal2 link | subglobal2 link | subglobal2 link | subglobal2 link | subglobal2 link | subglobal2 link
subglobal3 link | subglobal3 link | subglobal3 link | subglobal3 link | subglobal3 link | subglobal3 link | subglobal3 link
subglobal4 link | subglobal4 link | subglobal4 link | subglobal4 link | subglobal4 link | subglobal4 link | subglobal4 link
subglobal5 link | subglobal5 link | subglobal5 link | subglobal5 link | subglobal5 link | subglobal5 link | subglobal5 link
subglobal6 link | subglobal6 link | subglobal6 link | subglobal6 link | subglobal6 link | subglobal6 link | subglobal6 link
subglobal7 link | subglobal7 link | subglobal7 link | subglobal7 link | subglobal7 link | subglobal7 link | subglobal7 link
subglobal8 link | subglobal8 link | subglobal8 link | subglobal8 link | subglobal8 link | subglobal8 link | subglobal8 link

American Borders Forum

What should American immigration and border policies be? Submit your ideas to The American Borders Forum today.
Show Your Support for People with Autism - Boycott Mattel

Site updates each Wednesday.


Should American Businesses Be Allowed To Use Foreign Locations As Corporate Headquarters To Avoid Taxes?

Boo hoo, cry me a river... Once again Iím sure the conservatives are going to cry about the high corporate tax rates. Apparently billions of dollars in profits on an annual basis are not enough for some people. American businesses use our national infrastructure to operate but have an aversion to paying for it. It seems they think that the people barely scraping by on the paltry salaries most of them earn should bear the burden of paying for all of their corporate perks and profits.

Between 2008 and 2010 the U.S. government spent nearly a trillion dollars bailing out companies that made bad choices. At the same time, when people were misled by unscrupulous lenders and mortgage brokers into believing that everything would be OK if they just signed on the dotted line were losing their homes there was no bailout for them. Corporate executives continued to receive billions of dollars in taxpayer funded bonuses after they had driven their companies to the verge of ruin. The common refrain from the right is that people need to be held accountable for their choices. I guess that doesnít apply to corporations.

Corporations across the nation make billions in profits every year and pay little to no taxes because of the financial shell game they are allowed to play when reporting corporate earnings. They move money here and there and use every loophole they can to keep from paying corporate taxes. On top of that, the executives lobby Congress to keep the personal income tax rate unreasonably low for the top wage earners in America. They basically buy politicians through generous campaign donations that are insignificant compared to what they save on taxes by keeping Congress in their pockets. Buying Congress is a bargain when you look at what they save in taxes.

Now, Iím sure someone is going to question my math so let me lay it out for you. If you make $10 million a year and pay 36% in taxes you pay $3.6 million in taxes. If you make the same amount and pay 39% in taxes your tax bill is $300,000 more. If you can spend $100,000 in campaign donations each year to assure that people friendly to the 36% or lower tax rate are in office, youíve saved $200,000 per year. The politicians are a bargain at the price. Now, for a chance to sit next to the President of the United States at a fundraiser, you can spend anywhere from $5,000 to $25,000 per plate. For people looking to save hundreds of thousands of dollars or more each year in taxes by influencing Washington, this is an investment.

The bottom line in this discussion is that we have allowed our companies and the wealthy elite to completely take over our government and the working class is suffering for it. Corporations should not be allowed to hide their money from taxation and still do business here. If they want to make profits from American consumers they should be made to carry their weight when it comes to taxation. It is as simple as that.


Unapologetic Liberal - American | E-mail Comments on this column. | Click icon to Digg this article

Got a liberal viewpoint? We want to know what you think.

Next week's subject: Racial Profiling And Border Security

Send in your view from the Left to be our featured Left of Center View for the week.

Click here to submit your article.

Last Week's View from the Left:
Stereotypes And The Immigration Debate

Reform America Articles Archive



Should American Businesses Be Allowed To Use Foreign Locations As Corporate Headquarters To Avoid Taxes?: Right of Center View

The United States has one of the highest corporate tax rates in the industrialized world. American businesses have difficulty competing in the global marketplace if they keep their headquarters within our borders. The reason corporations move their bank accounts and headquarters offshore is that if they donít they will lose any competitive edge they might otherwise have over their foreign counterparts. If our elected officials in Washington could get over their addiction to taxing and spending more corporations would likely move their money back to America and support our economy instead of the economies of the Cayman Islands and Switzerland.

Whenever liberals begin to talk about solving the economic problems in America they start with saying we need to increase taxes when in fact the opposite is the case. If we reduced the corporate tax rate more businesses would bring their money back to America and the increased volume of companies paying corporate taxes would more than make up for the reduced tax rate. Liberals simply donít get that sometimes you can offset fewer larger gains with a greater number of smaller gains. If you have a hundred companies paying a million dollars you can offset that by having a thousand companies paying one hundred thousand dollars. Each company is saving a substantial amount incentivizing them to come back so more do. Even by cutting the corporate tax rate by 25%, you could conceivably entice enough companies to come back to more than make up for the individual companiesí reduction of taxes.

So the question at hand essentially is; ďShould companies be allowed to offshore their accounts to avoid the taxes?Ē Well, if we want our companies to be competitive then the answer has to be ďmaybeĒ. If Congress lowered the corporate tax rate to a reasonable level that was in line with other industrialized nations then we would need to be more insistent that American companies pay American taxes on all income if they want to be an American company. If Congress cannot find the wisdom to adjust the corporate tax rate to something more like reasonable then we have to accept at some level that American companies will need to shelter their resources from overly burdensome taxation to remain competitive in the global marketplace.

At the end of the day it comes down to Washington and how reasonable they can be when it comes to taxation. Businesses have many obligations they must meet. For public companies, shareholders need to see a return on their investment or they will take their investment dollars elsewhere. For all companies there are payroll and operating expenses that need to be considered when discussing taxation. Doing business in America is not cheap and the higher corporate tax rates are the more expensive it gets. If companies canít be competitive doing business based in America they will go elsewhere to regain that competitive edge. Thatís capitalism. Thatís business.

The Realist - Patriot at Large | E-mail Comments on this column. | Click icon to Digg this article

Got a conservative viewpoint? We want to know what you think.

Next week's subject: Racial Profiling And Border Security

Send in your view from the Right to be our featured Right of Center View for the week.

Click here to submit your article.

Last Week's View from the Right:
Stereotypes And The Immigration Debate

Reform America Articles Archive

Contact Us | E-mail us your ideas for future stories! This is your site! | ©2010 Reform America
All written items received by Reform America become the sole property of Reform America. Reform America reserves the right to publish or otherwise disseminate (with author acknowledgment noted) the contents of any written materials received by us at our discretion. By sending written materials to Reform America, the author agrees to these terms and holds Reform America harmless for any use of the items they submit. | Views expressed in articles submitted to Reform America by our readers do not necessarily reflect the views of Reform America or its staff.