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Could you provide an example of this?

A:

If the local coffee shop and a multinational brand coffee make the same dollar of pre-tax profit off the coffee you bought yesterday but pay two different tax rates, the one with the lower rate will have the advantage. And the Multinational Corporation has the advantage by moving money around using its subsidiaries overseas. The American Domestic is usually paying an additional 50% in tax rate than the multinational corporation.


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