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Tags: Nigel Green | United States | business exodus | taxes

deVere Group's Green: US Risks Business Exodus Over Taxes

By    |   Wednesday, 03 September 2014 12:58 PM

If the United States fails to reduce its corporate tax rates, the results won't be pretty for the economy, says Nigel Green, CEO of deVere Group, a financial advisory firm.

The top U.S. corporate tax rate of 35 percent is the highest in the developed world. A total of 55 percent of deVere's U.S. clients who own a business say they are considering moving their headquarters overseas because of the onerous U.S. tax burden.

"It is clear that unless America cuts its high business tax rate, it will struggle to maintain its competitive edge and remain attractive for investment," Green said in a commentary provided to Moneynews.

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"As such, companies, especially those with overseas earnings, will increasingly consider moving their registered address outside the U.S. . . . I predict capital flight could become a real issue from 2015."

President Obama should stop trying to prevent U.S. companies from lessening their tax burden and "instead push to bring America's tax code in line with the rest of the world's developed economies," Green noted.

"Most American companies do want to remain headquartered in America, but the tax situation is making it tough to justify doing so."

Others agree, including Eli Lilly CEO John Lechleiter and Caterpillar CEO Doug Oberhelman.

"The current U.S. tax system puts U.S. companies at a disadvantage," Lechleiter told CNBC.

"Some of these companies acting on inversions [moving their headquarters overseas] are simply trying to level the playing field. If we've got a concern about inversions, we need to tackle our tax code."

Oberhelman concurred. "There is no question that a comprehensive, full-blown tax reform in this country is absolutely needed and will absolutely stimulate growth," he told CNBC.

Editor’s Note: Retire 10 Years Earlier With These 4 Stocks

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Finance
If the United States fails to reduce its corporate tax rates, the results won't be pretty for the economy, says Nigel Green, CEO of deVere Group, a financial advisory firm.
Nigel Green, United States, business exodus, taxes
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2014-58-03
Wednesday, 03 September 2014 12:58 PM
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