How Are Some Big U.S. Companies Shrinking Their Tax Bill?
Every company wants to save on its tax bill. Although tax inversions have been making a lot of news lately, there are many other methods that corporations use to cut back on their taxes. In fact, seven companies in the S&P 500 index, including some big names that everyone is familiar with, have been able to effectively lower their tax bill every year over the last five years. So who are these companies and what’s their secret?
Google, PetSmart, Kohl’s and TripAdvisor are some of the companies that have been able to lower their effective tax rate while still seeing an increase in their net income from 2008 to 2013. One of the most popular tactics these companies use is to place a lot of cash into overseas accounts where business tax rates are much lower than in the U.S. For example, Google says it is keeping $38.9 billion of its $57.5 billion cash in overseas accounts.
Meantime, TripAdvisor used a restructuring of its operations outside of the U.S. to better manage its treasury and deployment of its global cash, in order to cut its taxes. The company managed to push its effective tax ate down to 27.8 percent in 2013 from 39.3 percent in 2008.
The fact is there are many ways to help reduce a company’s tax bill. If you are looking for ways to cut back on how much your company is giving to Uncle Sam, then contact GROCO today. We can help your company plan and prepare for all of your tax needs. Click here to learn more about our services.
Why Is Almost Half the Country Paying no Federal Income Tax?
One of the biggest tax debates that will likely always exist is whether or not the nation’s wealthy are paying enough in taxes? It’s easy for some to argue that they don’t but there are many factors that must be considered. Plus, all the while, nearly half of the country’s would-be taxpayers don’t actually pay…
Where Is Your Paycheck Going?
While many of the nation’s high net-worth individuals make much of their income through capital gains, those who still collect a paycheck are doling out of cash to the IRS every time they get paid. The same is true for all taxpayers no matter what income level they fall in. In fact, according to a…
Should the IRS File Your Taxes for You?
Imagine a world where you didn’t have to file your own taxes. Of course, you can use an experienced and professional tax and accounting firm like GROCO to do your taxes for you, but what if you didn’t even have to send your tax return information to an accountant? Could that ever really happen? In…
Unstable Stock Market Could Hurt State Tax Budgets
While many feel the wealthy should be paying more in taxes, the efforts to enforce this strategy does have some consequences for state budgets. Many of the country’s wealthiest individuals hold the majority of their wealth in stocks. That means when the stock market goes down, so do the tax payments of the wealthy. In…