USA Today Puts Pressure on Government to Stop Inversions

Individual taxpayers who think rates are too high can’t just stay in the USA and send their payments to another country, one where they have relatives, that offers lower rates. But corporations can and, increasingly, they do.

In the past decade, almost 50 companies — including Fruit of the Loom, Tyco International and Ingersoll Rand — have moved their taxable business addresses to places such as Bermuda, the Cayman Islands and various European countries with rates lower than the top U.S. corporate tax rate of 35% (39.1% if you include average state taxes).

On one hand, who can blame them? The U.S. rate is the highest in the developed world, and it’s legal to keep the company headquarters and most of the business in the USA but move the corporate address abroad by jumping through some regulatory hoops.

Read more: USA Today

Chief Executive :Chief Executive magazine (published since 1977) is the definitive source that CEOs turn to for insight and ideas that help increase their effectiveness and grow their business. Chief Executive Group also produces e-newsletters and online content at chiefexecutive.net and manages Chief Executive Network and other executive peer groups, as well as conferences and roundtables that enable top corporate officers to discuss key subjects and share their experiences within a community of peers. Chief Executive facilitates the annual “CEO of the Year,” a prestigious honor bestowed upon an outstanding corporate leader, nominated and selected by a group of peers, and is known throughout the U.S. and elsewhere for its annual ranking of Best & Worst States for Business. Visit www.chiefexecutive.net for more information.