Is investment less attractive in the United States due to the high rate of corporation tax?
A number of companies believe so. In the U.K., firms including Starbucks and Amazon have been placed under scrutiny for avoiding the U.K. rate of 24 percent -- in 2012 -- although this is due to be reduced to 21 percent in 2014. By using off-shore islands as the main registration for companies, they can operate in the U.K. without landing themselves a hefty tax bill.
However, in the United States, corporation tax rates are also in the media. The top rate is currently 35 percent, which is cause for complaint according to a letter sent to Congressional leaders this week.
19 firms have signed the document, which argues for a reduction in this business tax. Using the example of Japan, which lowered its corporation tax rate last year -- leaving the U.S. bearing the torch for the highest rate in the industrial world -- the companies argue that American business is now "less competitive and makes the U.S. a less attractive place for investment, ultimately harming businesses, investors, workers and consumers."
Companies including AT&T, FedEx, Boeing and Gap have signed the request, and asked that a "significant" reduction in corporation tax becomes a top priority for the Obama Administration.
Via: Huffington Post
Image credit: Flickr
This post was originally published on Smartplanet.com