Delaware isn’t really a tax haven. It is, however, very clever about bringing in money from people who don’t actually live in the state. Now it’s trying to become a destination to buy legal pot (with a hefty tax, of course).
Who would’ve thought that this election year could lead to corporate tax reform in the US? Goldman Sachs Group analysts say there could be some semblance of a bipartisan effort to rework the way multinational US companies are taxed during the next presidential term. They estimate there’s a 50-per-cent chance the corporate tax code will be reworked next year. (In short, the voters have spoken, and they want Big Business to pay.) The US taxes corporate income at the highest rate of any OECD country, at 39 per cent. And unlike any other G7 country, it taxes companies’ income earned abroad, though it gives credits for taxes paid to foreign governments. That would be onerous, if the taxes weren’t delayed until foreign income is brought back onshore. Perpetually. That gives companies a big incentive to keep their foreign income offshore, reinvest it in financial markets, and pay lower dividend and capital-gains tax rates instead. And, hey, look, they’ve responded! S&P 500 companies pay a median tax rate of 28 per cent, according to Goldman Sachs’s analysis: