Tags: Companies | US | Taxes | move

WSJ: More Companies Move Abroad to Escape US Taxes

Wednesday, 29 Aug 2012 11:31 AM

  Comment  |
   Contact  |
  Print   |
    A   A  
  Copy Shortlink
More and more U.S. companies are moving their corporate headquarters overseas to escape U.S. corporate taxes, which are among the highest in the world, The Wall Street Journal reported.

Since 2009, at least 10 U.S. public companies have moved their incorporation addresses abroad or have announced plans to do so, a Journal analysis of company filings and statements found. Fewer than that moved between 2004 through 2008.

Eaton, a 101-year-old Cleveland-based maker of components and electrical equipment, announced in May that it planned to acquire Dublin, Ireland-based Cooper Industries, another electrical-equipment maker. Eaton will keep its factories, offices and other operations in the United States, but move its place of incorporation to Dublin.

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

Eaton said tax benefits of the merger and moving would save the company about $160 million a year.

"We have too high a domestic rate and we have a thoroughly uncompetitive international tax regime," Eaton CEO Alexander Cutler told CNBC earlier this year. "Let's not wait for the next presidential election" to change the rules.

Ensco International, an oil-rig operator, moved to the United Kingdom in 2009 from Texas and expects to cut its effective tax rate to 10.5 percent from 19 percent in 2009, savings more than $100 million a year.

Rowan International, another Texas oil-rig operator, has said it will do likewise.

"We're able to be competitive, with a low effective rate," said Suzanne Spera, the firm's director of investor relations, The Journal added.

Both Democrats and Republicans have sought to revamp the U.S. corporate tax code, which sets a top rate of 35 percent, one of the highest in the world.

Ireland, for example, has set a top rate of 12.5 percent, The Journal noted.

The Obama administration has proposed lowering the rate to 28 percent, while Republican rival Mitt Romney has said the upper limit should fall to 25 percent.

Editor's Note: Obama Donor Banned This Video But You Can Watch it Here

© 2014 Moneynews. All rights reserved.

  Comment  |
   Contact  |
  Print   |
  Copy Shortlink
Around the Web
Join the Newsmax Community
Please review Community Guidelines before posting a comment.
>> Register to share your comments with the community.
>> Login if you are already a member.
blog comments powered by Disqus
 
Email:
Country
Zip Code:
Privacy: We never share your email.
 
Follow Newsmax
Like us
on Facebook
Follow us
on Twitter
Add us
on Google Plus
Around the Web
Top Stories
You May Also Like

Pimco: Global Growth to Flourish Next Year on Cheap Oil

Thursday, 18 Dec 2014 12:59 PM

Pacific Investment Management Co expects global growth to accelerate in 2015 to around 2.75 percent from around plus 2.5 . . .

Index of Future Economic Activity Posts Third Strong Monthly Rise

Thursday, 18 Dec 2014 10:44 AM

An index designed to predict the future health of the economy posted a third straight solid gain in November. . . .

Falling Jobless Claims Point to Firmer Labor Market

Thursday, 18 Dec 2014 09:09 AM

The number of Americans filing new claims for unemployment benefits unexpectedly fell last week, suggesting the labor ma . . .

Most Commented

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

 
NEWSMAX.COM
America's News Page
©  Newsmax Media, Inc.
All Rights Reserved