Tax Rates Too High

Cash Abroad Article

As long as corporate tax rates remain as high as they are, companies across the country will continue to keep their money off shore.  It is an easy decision to make for the stock holders they are accountable to for making as much as possible.  Paying less tax to countries anywhere, rather than more to the IRS, makes sense.

Politicians like to talk about taxes and tax rates incorrectly.  They think higher rates equates to more tax dollars collected, but they are incorrect.  They also like to think that changing the tax code will simply mean people will do what they always did, and pay higher taxes in the process.  What it really means is people will find a way to manipulate the system to allow them to pay the least amount of taxes possible, keeping more for the companies.

Politicians need to lower tax rates on corporations, to a point where they elect to bring that money home.  Once back on shore, they will invest it, causing the economy to grow.  The increased investments will result in higher incomes and higher tax revenue for government at all levels.  Unemployment would also decrease as the investment would result in expansion of existing  business and into new markets.