HELP me win argument with my conservative boss! I argued your point from recent video about Boeing choosing to make airplane parts in European countries, where corp taxes are higher. Doing this because of the benefits of those taxes -- better-educated workers, better infrastructure, etc. But he says it's not true that corp taxes are higher in Europe. And I think he might be right, though I can see from my google search there is a lot of fog on this point. The EPI says effective corp tax rate in US is 27%, in line with most European countries. http://www.epi.org/publication/ib364-corporate-tax-rates-and-economic-growth/ How do I respond to this? thanks.
More than ever, corporations have learned how to use globalization to evade taxes. This makes good numbers very hard to come by. Here is what we know. The US tax rate on corp profits = 35% but with deductions and exemptions, the EPI and others calculate an average effective rate closer to the mid 20s% which is not very different from calculations of what average Europeans pay. However, averages are deceiving, when corporations from the US relocate to Ireland, Netherlands, etc they can wrangle far, far lower rates or take advantage of public rates that are far lower than mid 20s%. Boeing likely went to Europe for multiple reasons including better tax deals, better relations with final customers in Europe, and so on