Do I need a Corporate Lawyer in Miami?
The United States has the highest corporate tax rate among all developed free-market countries. There have been arguments that these rates should be reduced because it encourages businesses to invest globally rather than at home or, in some circumstances, to simply leave the U.S. There certainly is a concern about job loss in the event that such actions occur. So, do I need a Corporate Lawyer in Miami?
Corporations are paying at a federal level a marginal tax rate of 35 percent. Add on state taxes and these companies are then paying at a rate of around 39.2 percent. According to a Corporate Lawyer in Miami, the global average for corporate tax rates is 25 percent.
Our businesses are also paying what amounts to double taxation when it comes to foreign income that is earned. This is because the U.S. taxes income that corporations earn abroad. Most other developed nations do not tax foreign income in this manner and arguably provides foreign companies a competitive advantage.
Unfortunately, we are not likely to soon see any changes. Interest groups will all have their say when it comes to extremely complex code and a large number of reform proposals will never be properly addressed.
A global business strategy
The corporate tax rate may be causing many businesses to search for the lowest-cost option by possibly locating elsewhere. Businesses also will choose to spend rather than engage in long-term saving as the money they spend is often written-off as a business-related expense, according to a Corporate Lawyer in Miami.
We do not want to continue seeing businesses in Florida and elsewhere fleeing the country for greener pastures. What may instead be required is a global business strategy that businesses can use to reduce their tax liabilities and remain competitive. Corporate attorneys can help companies address a variety of concerns and put together such a strategy.
Source: Investopedia, “Do U.S. High Corporate Tax Rates Hurt Americans?” Amy Fontinelle, May 16, 2014