If they want to complain or occupy something, they should look at state capitals and Washington, D.C. Why? Because that's where tax rates are determined. Why is that important? Because business are taking their headquarters out of the United States. Therefore, they're not paying US corporate taxes.
Everyone in the US knows the economy sucks right. That's not a surprise. Jobs are leaving, companies are shutting the doors, and the unemployment rate for young adults, especially college graduates, is alarming.
What's under-reported is the US tax rate is a primary reason companies are moving their businesses overseas. This July, General Electric announced it was moving it's X-Ray business from Waukesha, Wisconsin, to Beijing, China. At the time, GE didn't think it would cut any jobs in the area, but eventually, you know they'll come. But the bigger loss is the tax revenue, since they are moving the unit's headquarters as well. But why in the world would a company like GE move such a primary unit to a . . . Communist country?
Easy. It's the tax rate. China's corporate tax rate is 25% for both domestic and foreign companies. Meanwhile, in the United States, the corporate tax rate could be anywthere between 15-35%. You can bet the higher earners, such as GE, are taxed well above the 25% threshold.
So while the #Occupy movement wants the greed to stop, they should be asking Washington to lower the tax rates so corporations don't feel moving overseas is a good move. Companies exist to make money. That's just the way it is. If they're not making enough, they'll do what they need to do to make more. If you don't understand that, there are gas stations in Jersey that have to employ people to pump gas. Really. They are state mandated jobs.
Recently, tennis star Rafeal Nadal said he wouldn't play next year in the warm-up tournament for Wimbledon in London. Why?
The Spaniard believes the 50 percent tax on players’ appearance fees, winnings and a proportion of their worldwide endorsement earnings could see the glamour event featuring the top eight men being staged elsewhere unless the law is changed.
While some may shrug and say oh well, this will put a burden on ordinary people who rely on these events for income. Hotels, car services, resteraunts, and many other ancillary services will be affected. So by having a high tax rate, the UK is hurting its very own wallet.
I don't mind paying taxes I believe are fair, but when people complain about companies leaving the country and say they should stop shipping jobs overseas, ask why they are doing it. Companies will base themselves where they can make the most money.