Google Pays Only 2.4% Because of Excessive US Tax Rates

The headline sounds contradictory, doesn't it?  It is true, though.  High personal and corporate tax rates in the United States force profitable companies to engage in high-end tax planning.
Google’s income shifting -- involving strategies known to lawyers as the “Double Irish” and the “Dutch Sandwich” -- helped reduce its overseas tax rate to 2.4 percent, the lowest of the top five U.S. technology companies by market capitalization, according to regulatory filings in six countries.
Source:  Bloomberg.

Fat chance that the media and other Obama-ites will recognize that the true cause of Google's low tax rate success is incentive to escape the high tax rates imposed by the United States.

First, let us understand that corporations do not pay taxes. People do. Corporate taxes are simply reflected in higher prices.

I understand that it is politically unpopular to eliminate corporate tax rates. However, if government wants to promote business, corporate tax rates should be low, low, low. If they are not low, a rational corporate governance will dictate exploring the system to find ways to save money. That is their job. That is their duty. They owe that to their shareholders.

Congratulations Google for a job well done. Shame on you, Congress, for creating a situation that forced Google to become to tax-aggressive.


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