A Republican midterm sweep may lead to lower corporate taxes

https://twitter.com/USCitizenAbroad/status/529291429072633856
Really, it’s time for the United States to stop taxing citizens who live outside the United States and the profits of corporations that are earned outside the United States. Territorial taxation for both.

Financial Post | Business

Republican victories in Tuesday’s U.S. midterm elections are unlikely to rattle equity markets, but could lead to significant changes in corporate tax policy and mark the beginning of the end for popular tax inversion deals that saw Burger King Worldwide Inc.’s proposed merger with Tim Hortons Inc.

S&P 500 companies earn 40% of their profits abroad, up from 15% in the mid-1990s. As a result, most large U.S. multinationals are exasperated by high U.S. corporate tax rates and more so by the taxes imposed on foreign profits when repatriated.

“U.S. companies cannot compete effectively abroad if they must pay taxes that companies headquartered elsewhere don’t,” said David Bianco, chief U.S. equity strategist at Deutsche Bank. “The slew of inversions, which Treasury recently rushed to impede, is evident that U.S. politicians don’t understand global business.”

A Republican-led Congress could pass legislation that establishes a timetable for transitioning the U.S. to a…

View original post 786 more words

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s