Conclusion

A review of the materials we have learned

Companies moving overseas

When companies move overseas it creates problems for the United States economy and ultimately the country looses tax revenue.

Thesis

By establishing positive incentives for companies moving back into the country, revising tax policy and removing some penalties for firms, the United States will encourage more firms to locate their center of business within the country.

Taxes of Countries

The United States currently taxes domestic companies 35%

Ireland taxes its companies 12.5%

The UK taxes companies 21%

How companies avoid taxes

Ultimately a company cannot avoid paying their intended taxes, however, there are several methods that they can employ to reduce them.


Examples Include:

Offshore Accounts

Relocation of host nation

Deduction of some expenses by involving parent companies

Proposed Solutions

The United States should lower the tax code so that it would make more companies want to stay within the country. It should eliminate the holes in the tax code and try to make a more economically beneficial for companies that are located within the United States. It should lower the money taxed on foreign earnings of domestic firms. More incentives should be provided such as tax allowances and export assistance to help American corporations compete in the global climate.