Multinational Corporation Inversion
U.S. -based Multinational corporations have decided to have a "patriotic" change of heart and alter their nationalities by moving many of their headquarters over seas. But, these recent alterations were not caused by a sudden interest in taking up the sights or admiring European culture, but to avoid greater worldwide taxation, in other words U.S. income tax, also legally known as "tax inversion." In which 45 companies in the last 14 years have steadily increased.( Shown in the graph below)
"Imagine you are a California-based widget manufacturer competing around the world against a Dutch widget manufacturer. You both compete in Latin America and pay taxes on your income there. Trouble is, your Dutch competitor can reinvest those profits back in its home country without paying additional taxes, but you can't," a good example which was stated by Andrés Martinez in USA Today. However, in recent discussions between republicans and democrats the topic has been less about the inversions of large corporations, but largely on the outdated tax code and if it should be revamped becoming more so like the Territorial tax system embraced by other countries. After reading this article, I oppose that U.S. should also embrace the territorial tax system.
U.S. -based multinational corporations such as McDonalds which estimates about 1.5 billion each year in revenue, Apple which estimates about 46.3 billion in revenue each year and EA which estimates another 3.8 billion in revenue this is not including the various other large corporations that cover our enormous nation. With the large amounts of revenue these enormous corporations U.S. income tax should be no problem at all. Not only that but with the large amounts of income that are produced by these large corporations although much of it is funded back into the company to make newer and more advanced technology, it can also be integrated into making better medical equipment, roads, and other such advances.
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