Kawak wrote:Ohh now I get it. So that money doesn't really count then? It's just pretend money's. They can't really spend that.
http://www.nytimes.com/2011/03/25/business/economy/25tax.html?_r=1
I did not read the article,but as HD stated, they did pay tax, just at a much lower rate in another country. Why? Because they can and it is good business to keep taxes low. What happens to the profits? Well it gets invested in other countries because our tax laws impose a tax on the profits if they are spent in the US.
Our tax policy is FORCING large companies to move more and more operations overseas and puts a 35% tax on any profits from foreign operations that is spent in the US.
Up until the crash, Ireland had one of the hottest economies in the world because they decided to take advantage of our high corporate tax rates. US Corp. Tax rate 35%. Ireland 12.5%. Hundreds of international companies have opened/moved offices to Ireland to take advantage of the lower tax rates.
If we want companies to keep operations in the US, we need to drastically reduce our corp tax rate.