WalletHub recently turned to some of the foremost experts in the fields of accounting and tax law in search of insights into the country’s current corporate tax system as well as potential fixes to it. You can check out the questions we posed as well as their responses below. They posed the following question to Narelle: “Is the U.S. leaving money on the table with the current corporate tax structure?” An excerpt of her response is below. You may also read Narelle’s full response online or download a copy of it.
Is the U.S. leaving money on the table with the current corporate tax structure?
There are a number of things that are globally uncompetitive about U.S. corporate income tax rates. Firstly, the U.S. has a double tax system whereby the profits earned by a company are taxed, and then they are taxed again in the hands of shareholders. It is really an internationally uncompetitive tax system. There are a number of ways to minimize double tax, and in the USA many CPAs/tax advisors have businesses established as a S corporation or use LLCs which are taxed as partnerships/sole proprietorships. However, this is not an option for U.S. public companies, as they must be C corporations. Remember, the majority of income taxes (federal and state) are paid by individuals. Read more online.