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American Corporations Pay Higher Effective Tax Rate than Most Other Countries
Apr 15, 2011, 09:32 AM
Read our article, 'American Corporations Pay Higher Effective Tax Rate than Most Other Countries' at 'Time to Start Up,' the small business blog by BizFilings.
While members of Congress seem to disagree over virtually every issue, there is one matter that seems to be agreed upon by both Democrats and Republicans: the corporate tax loophole and the code that makes it possible.
For example, The New York Times has reported that General Electric, one of the largest and most successful companies in the world, managed to get away without paying any U.S. income tax last year.
Even so, Business Roundtable released the results of a study conducted by PricewaterhouseCoopers this week, finding American corporations paid an average effective tax rate that was well above the international average between 2006 and 2009: 27.7 percent, which compares to the average rate of 19.5 percent paid by foreign-headquarted companies.
"Our tax system has not kept pace with the rest of the world and is hurting the ability of American businesses to create jobs at home," said John Engler, president of Business Roundtable and former governor of Michigan.
Treasury Secretary Timothy Geithner has expressed the need for U.S. tax code reform, according to The Hill, as well as his counterparts across the aisle. However, many analysts and business experts have asserted that circumvention of tax code is, to some degree, inevitable.