Winner and (Lesser) Winners

By |2018-01-16T12:07:41+00:00January 16th, 2018|Categories: Global Market Update|Tags: , , , |

What is the corporate impact of tax reform? Public Domain. Source: Wikimedia The new tax law is on the books, and most people will be looking at their paychecks to see how the new rates will affect them personally. But the biggest impact of the law will be on corporate taxes. After all, going into 2017 there was a broad consensus that our highest-in-the-world corporate tax rates needed to be reformed, with a lower statutory rate and [...]

The Very Model of a Tax Deal

By |2016-11-17T16:40:24+00:00July 24th, 2014|Categories: Global Market Update|Tags: , , , |

What is tax inversion? A tax inversion happens when a corporation relocates its headquarters from a high-tax country to a low-tax country. The company doesn’t change where it makes and sells its products, just where the head office sits. It’s a way for companies to reduce their tax bill. The practice has gotten into the news lately because some prominent US firms have acquired foreign firms, and one financial incentive has been reducing their taxes through corporate [...]

57,000 Questions

By |2014-12-22T15:57:15+00:00November 18th, 2011|Categories: Global Market Update|Tags: , , |

Something is wrong.Something is wrong when GE employs an army of accountants to file a 57,000 page tax return in order to pay no taxes. Something is wrong when our 35% marginal corporate tax rate nets a 20% effective tax rate. Something is wrong when a country like Finland–with a 26% marginal rate–collects […]