Allan Sloan wrote the cover story for the July 21, 2014 Fortune magazine entitled: POSITIVELY UN-AMERICAN Big time companies are moving their “headquarters” overseas to dodge billions in taxes…that means the rest of us pay their share.
This is stupid. Here is why:
1. Corporate income tax is stupid.
Taxes are a cost of doing business for any company large or small. And like all costs it is rolled into the price of the product(s) paid for by the consumer. Think about it. Why do businesses use a federal tax ID number to avoid paying sales tax on goods resold to end users? Because the consumer pays the tax on the product and it is silly to pay a tax only to have to add it to the price of the product. But this is what happens with corporate income tax. Continue reading