A Corporate Tax Rule that Cost U.S. $10 Billion and Helped Double Revenues…Overseas

[The Straight Story]

A Corporate Tax Rule that Cost U.S. $10 Billion and Helped Double Revenues…Overseas

Fifteen years ago, the Internal Revenue Service (IRS) made a simple rule change intended to cut down on tax paperwork for U.S. companies. Since then the “check-the-box” procedure has become a windfall for corporations that have used the change to move profits from countries with high business tax rates to those nations with low or no corporate taxes.

The rule costs the U.S. Treasury about $10 billion in tax revenue, and billions of dollars more for other countries as well.

Check-the-box allows companies to shift profits from high-tax countries by marking an IRS form that transforms subsidiaries into a “disregarded entity,” or “tax nothings.”

Not only has the rule cost the U.S. government money, it’s also helped encourage foreign investment by American corporations. Over the last seven years, the earnings that U.S. companies shelve overseas have doubled to about $1.8 trillion.

http://www.allgov.com/Where_is_the_Money_Going/ViewNews/A_Corporate_Tax_Rule_that_Cost_US_10_Billion_Dollars_and_Helped_Double_Revenues__Overseas_110928

[xchrom]

1. recommend

[ChandlerJr]

2. Damned Reagan and his corporate cronies

helping to destroy us.

[msongs]

3. we have had democrat controlled congresses since then that did not change this so....

its not all reaganism here