Originally Posted by houghtam
Did you even read your own article?
Connect some dots, Hough.
It's true that what corporations actually pay isn't too out of line (yet) But it's only because they engage in just exactly the kind of evasion you kids say should be illegal.
The tax code provides multinationals based in the United States with many incentives to shift income to foreign low-tax jurisdictions. In theory, American corporations are taxed at 35 percent on their worldwide income. But income earned by an active controlled foreign corporation is not usually taxed until the cash is repatriated to the parent company in the United States as a dividend.
From a policy perspective, the problem is not so much that tax on foreign income is deferred, but rather that United States income is being masqueraded as foreign income.
We can't cut corporate taxes transparently because of the counter-corporate pitchfork brigade. Now you want to keep coming back until there really is no reason left to be an American multinational.