Re:Technology Change Not the Culprit in Wages Falling Behind...
by AnthonyMouse on Wednesday February 21, 2018 @11:47PM
(#16435212)
Talking about "effective tax rate" with regards to multinational tax-avoiding corporations is basically gibberish.
You can't use taxes paid as a percentage of revenue because it's meaningless. A retailer with a 3% profit margin would have a ~1% effective tax rate because 97% of their revenue goes to tax-deductible expenses.
But if you use taxes paid as a percentage of profit then you're not counting any of the tax avoidance, because the way international tax avoidance works is to shift profits to sister companies in other countries instead of the one with a high nominal tax rate.
The former effective US corporate income tax rate, for all corporations, was higher than Finland, Sweden, Norway and Denmark's statutory rate.
The effective rate for the S&P 500 was higher than the statutory rate for Finland, Sweden, and comparable to Denmark. And that's for the elite of the elite of tax avoiding companies. eg:
"The average effective tax rate among S&P companies that had posted calendar fourth-quarter results as of Friday was 24.11 percent"
https://www.cnbc.com/2017/02/13/tax-cuts-sp-500-may-not-get-...
"The United States’ corporate tax ranks relatively high on all three measures [among the G20]. The U.S. has the highest statutory rate (39.1 percent), the third highest average effective tax rate (29 percent), and the fourth highest marginal effective tax rate (18.6 percent)."
https://taxfoundation.org/cbo-report-compares-us-corporate-t...