Corporate Law: Corporate Tax
It can be tough living in the United States, especially for someone who was raised in the inner city. Crippling misinformation keeps people impoverished communities voting against their own best interests. For instance, welfare reform could reconstruct the inner city, but the residents of these communities are adamantly opposed to the changes. Nothing embodies this self-defeating behavior more than poor people’s opinion of the corporate tax.
Corporate Law and Corporate Taxes
There was a time when a corporation was almost forced to consider the US as a location for their global headquarters. Now China is poised to replace the US as the world’s largest economy, and international competition to attract corporations has changed the global business landscape. There are still lots of advantages to locating a company in the US, but the 40% corporate tax rate is a liability. Countries like China and India have extremely lenient tax laws with which America can’t compete. Worse of all, the people who support the lofty 40% corporate tax are the people whom it hurts the most. Those with less are usually the biggest supporters of the corporate tax, but it prevents them from finding better jobs. In countries like China, the governement shows favor to the corporations to attract them there. It’s far better to collect taxes on the employees, than to see the company move to Asia, Europe or even Africa. Unfortunately, it’s extremely difficult to get the corporate tax lowered, because impoverished people think the wealthy should have to pay outrageous taxes.
A Closer Look at Corporate Law
It’s important to note that corporations are only taxed on their profits and they can write off anything that helped them pursue a profit. Corporations are essential for a vibrant economy, and people’s failure to recognize this is giving America’s competition an advantage. China isn’t the only country attracting international companies to its shores. India, England and even South Africa now attract international companies with competitive corporate taxes. Corporate attorneys like medium.com’s Frans Schoeman of Phatisma Diamond (A South African corporate law firm) must understand international corporate law and domestic law. This is necessary, because there are companies with branches in multiple countries.
Defeating the US Corporate Tax
Perhaps the citizens of the US will begin to familiarize themselves with corporate law, especially the corporate tax. Contrary to popular belief, raising corporate taxes does nothing to hurt the business professionals. These individuals have the resources to simply relocate their companies. The international economy will continue to grow with or without the US, but our tax rate will directly affect our role.