Originally posted by atticus_finch
As i understand it, corporations are taxed twice:
the income tax, and then another corporate tax
if this is the case....its retarded. Nothing could slow commerce down like excessive taxing of the biggest empolyers.
please tell me im wrong and our country doesnt do this
it's true businesses get taxed on their earnings overseas when they do business in other countries then good ole Uncle Sam taxes them again on the same earnings. This is why Corporation HQ's are relocating overseas so they can avoid the double taxation on their overseas earnings.
For example if Nike has it's HQ overseas and sells a bunch of shoes in the UK than Nike is required to pay only the UK government their share of taxes. If Nike's HQ was based in the US, than Nike would have to pay the UK AND the US Government their share of taxes each on Nike's earnings from the sale of shoes in the UK.
We are the only country that does this and all it does is put our ourselves at a serious disadvantage against other countries. For those of you who think these corporations are greedy and evil for moving overseas, keep in mind the more profitable the business is than the more people they can employ and the more they can pay their workers.