It’s called “Inversion” when companies register in foreign places so they can pay lower taxes. The United States is unique among developed nations. It imposes both a high corporate income tax rate of 35 percent including a 35% tax on the profits from all their subsidiaries abroad. It’s called a “worldwide” system of taxation, and it contrasts with the “territorial” system employed by most developed countries including the United Kingdom and Canada, which generally tax only profits from domestic activities. The result is U.S. corporations with subsidiaries in lower-tax jurisdictions face higher taxes on those foreign operations than they would if they were incorporated elsewhere. If a company is incorporated in the U.S., they pay 35 percent tax on income in the U.S. and Canada and Mexico and Ireland and Bermuda and the Cayman Islands, but if they’re incorporated in Canada, they pay 35 percent on income in the U.S. but 15 percent in Canada and 30 percent in Mexico and 12.5 percent in Ireland and zero percent in Bermuda and zero percent in the Cayman Islands. Stupid tax policies send jobs and profits to foreign countries. Trump want’s to change that.
If the U.S. tax rate is lowered companies will come to the U.S. bringing jobs and profits to the U.S. How hard is this stuff? It’s how Trump will bring jobs and profits back to America and make America Great Again.
Obama tried to get Congress to stop Inversions which made American companies vulnerable to foreign takeovers. China could own loads of American companies if the stupid Obama led laws change and make it more expensive to do business in America.