Who is to Blame for USA Companies Leaving the Country for Lower Taxes?

USA COMPANIES LEAVING THE COUNTRY FOR LOWER TAXES

Who is to Blame for USA Companies Leaving the Country for Lower Taxes?

Imagine you owned or ran a large company that was making a lot of money. However, instead of seeing all of that money count as profit, you were watching a large portion of it being taken due to the United States bloated corporate tax code. Then imagine that you discovered a legal and relatively simple way to save a bunch of money on your tax bill. What would you do? You would probably jump on board, right?

More to the Story

Before you say yes, there’s more to this story. What would you do if you found out that even though your tax savings plan was legal there were still plenty of people who didn’t like what you were going to do? In fact, suppose the president of the United States was even against it and that he and other lawmakers began lobbying for ways to stop it; what would you do then? Of course, this is not a hypothetical situation at all. More U.S. based companies are considering tax inversions, the practice whereby a company switches its headquarters to a foreign country, on paper, in order to avoid the large corporate tax bills that are so common in America.

The Line Is Getting Longer

In fact, according to reports, several companies are ready to make the move now, including AbbVie and Shire, Applied Materials, Horizon Pharma, Medtronic, and Chiquita Brands. As these deals appear to be increasing and with more companies getting in line to take advantage of them, the blame game is also starting to get more interesting, as it seems that no one is immune to taking the heat.

The Blame Game Heats Up

Most recently, President Obama held a news conference early this month in which he discussed these tax inversion deals. So to whom do you think the president aimed his ire? It wasn’t the companies themselves, or their corporate tax lawyers. No, instead he blamed the accountants. Yep, this is what President Obama had to say:

“You have accountants going to some big corporations — multinational corporations but that are clearly U.S.-based and have the bulk of their operations in the United States — and these accountants are saying, you know what, we found a great loophole — if you just flip your citizenship to another country, even though it’s just a paper transaction, we think we can get you out of paying a whole bunch of taxes. Well, it’s not fair. It’s not right.”

Doing Their Job

These tax inversion deals are not illegal and of course, it’s these accountants’ job to help the companies they work for save as much money as they can. So is it really right to blame accountants for these deals? After all, if the companies themselves weren’t lining up to make these moves, would the accountants be helping them do so? Maybe, just maybe, there are other forces at work here that need to take some of the blame. Namely, the U.S. corporate tax code, which at about 35 percent is the highest among the developed world.

Looking for “Strategies for reducing tax“?

Tax Reform Could Make a Difference

Even though lawmakers and other government officials like to point the blame for these deals elsewhere, whether it’s the companies, their accountants or their tax lawyers, perhaps the root of the problem is actually the lack of real tax reform. By focusing on rewriting the corporate tax code, lawmakers could ease the burden on companies and thus make these deals rather pointless. However, until there is real tax code reform, the debate, and the blame game is sure to rage on.

Are you a Corporate, Estate and Trust, Individual, Limited Liability Company, Not for Profit, Partnership, and S Corporation income tax areas &
Looking for WEALTH & TAX PLANNING & PREPARATION SERVICES?

 

We hope you found this article about “Who is to Blame for USA Companies Leaving the Country for Lower Taxes?” helpful.  If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page  or our website at www.GROCO.com.  Unfortunately, we no longer give advice to other tax professionals gratis.

To receive our free newsletter, contact us here.

Subscribe our YouTube Channel for more updates.

Alan Olsen, CPA

Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com.  GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.

Alan L. Olsen, CPA, Wikipedia Bio

 

 

GROCO.com is a proud sponsor of The American Dreams Show.

 

American-Dreams-Show-Accounting-firm-in-ca-cpa-tax-advisors-groco-alan-olsen

The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.

Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.

The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.

They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..

American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:

Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…

Untitled_Artwork copy 4

MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness.  It’s mission statement:

In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.

Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.

Posted in

Chester Wooley on Where Philanthropy and Venture Capital Meet

Geoff “Chester” Wooley, Co-founder Patamar Capital and current board member of SKS Microfinance, India’s largest microfinance bank, discusses where philanthropy and venture capital meet on Alan Olsen‘s American Dreams Show. Transcript:   Geoff Woolley  0:00   Philanthropy and a family office’s investing is quite separate from each other. Depending on the size of the family office, its foundation or…

The Future of ESG and Impact Investing with Michael Meehan

The Future of ESG and Impact Investing with Michael Meehan

Michael Meehan, Co-founder, Canoe Carbon, Forum for Impact, and former CEO, GRI discusses the future of ESG and impact investing on Alan Olsen‘s American Dreams Show. Transcript:   Alan Olsen  Michael, you have a remarkable story. And for the listeners here, can you share your background and how it got you to where you are today?   Michael…

Becky Douglas on Saving Leper Colony Children

Becky Douglas on Transforming Leprosy Colonies in India

Becky Douglas, founder of Rising Star Outreach, a non-profit dedicated to saving and transforming the lives of children and their parents affected by leprosy in India, discusses how it became reality on Alan Olsen’s American Dreams Show. Rising Star Outreach born from tragedy. Becky’s journey to helping leper colonies in India began with a personal tragedy that transformed…

Unveiling Entrepreneurial Success with Randi Brill

Unveiling Entrepreneurial Success with Randi Brill

Randi Brill, best-selling author and CCO of Just Call Randi Design Agency discusses unveiling entrepreneurial success on Alan Olsen‘s American Dreams Show. Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Randy brill. Ready welcome to today’s show.   Randi Brill Thank you, Alan. I’m glad to be here.  …