Nov 8, 2016|
Jill Gonzalez (WalletHub, Corporate Tax Rate) by The Financial Exchange
Transcript - Not for consumer use. Robot overlords only. Will not be accurate.
There's a big disparity in terms of what corporations pay as a rate of tax on their income. We're joined now by Gio Gonzales from wall Hud dot com to talk about the corporate tax rates I Joseph are you. Lot of I'd do so what is the actual tax rate on corporations does in reading your report it seems to be anywhere from. Heck 79%. Down to sixteen point 4%. Yeah on average the overall tax rate it could be 100 companies. It's just around 28%. And that's basically unchanged from the year prior and. And how much you tax rates outside of the United States. These companies expect to. Hey abruptly around 44%. Lower rates are international taxes and US access. That's a lot that that is I guess that's why you see so many companies. Either hiding money overseas or you know not bringing it back to the US. Absolutely it'll get to this later but there are certain companies that because that there is closing a loophole there because of them deeper investigation. They end up hanging pat tax expense overseas eventually in the US. No wood to. How can a company have a negative tax free because I was reading your report. General Motors has a tax rate of minus 34 point 3% that doesn't make sense. Any company that has. While losses. In 2015 we've got fifteen amber yeah anyone that has that negative income will not and that's paying taxes that's how they get and nugget factory. You make jury that poor. It lacking is at stake and they don't have those a lot is reported increased sixteen. Some merit. It would oh how can GE be paying taxes that a 79%. Rate. This is exactly the opposite though because. Jean now has the progressive tax policy think they've been cleaned in recent years for not paying a lot of taxes. That's a well overall aspect it actually the right now eat registering higher than normal factory and you cubic cast. That includes about ten billion dollar for an earnings that prior to this means he can't go exit plan where. Indefinitely reinvested in GE's capital international operations there now. That's when this is not catching up to and why they have set a higher rate than normal. Okay do you expect much in the way of tax reform going forward is that a big political issue or you've got one candidate. Saying that day he wants to reduce corporate taxes down to 15%. That's right I think after today might look very different we have one bag Clinton saying that you have to close various loopholes and regulate. High frequency trading where is child wants to discourage incursions beer taxation. In order to grow the economy. What's the best way to address this nearly and stop the inversion because that's a big problem we have companies leaving the US. Because they feel in their shareholders insist on it right if you're shareholder net private equity firm. You're telling these companies looking need to get out of the US taxes are too. I think that we can actually have a combination of these two plants don't get discouraging incursions lightning Hastert and cap on corporation they think the type of corporations will determine those in Paris and but I also think that closing these loopholes that companies signed by giving business in countries. When much more than others well also out. And Larry but they Jill thank you very much for your time we appreciate it. Joseph Gonzales Wallace Hud dot com I was shocked to taxes high 79% right. But that was a shock and then at a shock to be seeing taxes like Chevron they're tax rate was only two point 7%. Especially as as Nigel mentioned here at GE historically has paid a very low rate of tax and it's just some of the things are kind of coming home to roost for them. At this point just based on where their earnings of matched up and you know how much they have coming due from be a previously deferred taxation so. It's always interesting to see how different companies tried to end up you know handle in the system the big takeaways that I have. That 28% tax rate that companies and paying on average is 44%. Higher than what other companies pay international. So that's a big it's a big problem and unity you look at the next congress. I mean it. The criticism towards the Republican congress led by Paul Ryan they have not introduced any tax cutting legislation in the last six years they've they've tried to push. That not that they've got bring it out he gonna say hey isn't this is our plan and let them let him you know veto it but he made they did not do that.