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Despite what both Hillary Clinton and Donald Trump said during t…

Posted on November 15, 2016 by Shahid Bolsen

Despite what both Hillary Clinton and Donald Trump said during the campaign, the tax burden on corporations in the United States is NOT actually why they choose to move elsewhere.

Officially, corporate tax is around 35%, which, yes, is higher than most developed countries. But in the US, corporations enjoy several incentives and exemptions which bring their effective tax burden to around 26%, which is comparable to other countries.

They move outside the US because they can exploit cheap labor, not for tax reasons. And they will not return to the US for tax reasons; they will return when American labor is as cheap as it is in China.

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