The American Corporate Tax Rate and the Takeover of U.S. Companies by Foreign Firms

Wall Street Journal 5/15/16 Editorial

Why Foreign Buyers Are Snapping Up U.S. Companies: Two former U.S. Treasury Department officials warn that the rapid takeover of U.S. companies by foreign firms, and the growth in corporate tax inversions by American firms, will only escalate if the federal corporate tax rate is not reduced. Former Treasury officials James Carter and Ernest Christian argue that the 35% U.S. corporate tax rate and outdated global tax collection system puts U.S. companies at a colossal disadvantage to foreign competitors who then headquarter U.S. companies in their own more tax friendly countries. Citing a report from Ernst & Young, they emphasize roughly 1,300 American companies lost to foreign investors over the past decade could have remained here if a reduced tax rate of around 25% were in place. Read moreā€¦

Visit Link: http://www.wsj.com/articles/why-foreign-buyers-are-snapping-up-u-s-companies-1463345130?mg=id-wsj

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