The New York Times today addressed the current proposal to lower taxes for corporations. The White House and the Republican controlled Congress are arguing emphatically that corporate tax rates need to be reduced because the U.S. has the highest tax rate among the seven most developed economies in the world.
Yes, they are correct that the U.S. has the highest marginal rate, but U.S. corporations do not pay the most taxes. As seen below, and as reported by the White House and the Treasury Department in 2016, U.S. companies pay the fifth highest as measured by the effective rate. If the same tax breaks and financial loopholes remain AND their maximum tax rate declines from 35% to 20% U.S. corporations will be near the bottom. Why does this matter? Because of the United States government’s current budget debt of $20,496,092,622,812. Yep, it’s a lot…mucho grando. If a plan isn’t put into action to reduce it soon it may lead to economic trouble ahead.
You may have read that hackers broke into the Equifax database and stole personal information tied to 143 million people. The hackers accessed people’s names, Social Security numbers, birth dates, addresses and, in some instances, driver’s license numbers. They also stole credit card numbers for about 209,000 people and dispute documents with personal identifying information for about 182,000 people. There is no reason to think that data is not for sale to criminals on the darknet who can use it to open new lines of credit or file phony tax refund requests in peoples’ names. To make matters worse, crooks usually target the wealthy because they get more bang for the effort buck.
The company compounded its public relations nightmare by sending people to a website to find out if they were affected, and then including language so that anyone signing in to get this information had to waive any right to join a class action suit against the company should their identities be stolen and financial harm come to them.
We would like to make this blog more of a source of information for those who are clients and those who are not. Feel free to share with anyone or just store away as a topic for your next dinner party.
Begin with the end in mind: Start your next advisory relationship with a clear exit strategy...
Occasionally we like to post articles that give you some insight into how we form our opinions or stay informed.