Tag: Corporate Tax
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Unprofitable subsidiaries becoming new tax haven for multinational corporations
[box size=”large”]Multinational corporations are moving income from their profitable, high-tax subsidiaries into unprofitable ones to save money on taxes, a University of Waterloo study has found.[/box] The study’s findings shed light on a tax planning strategy that is not currently focused on by governments, which tend to focus their efforts on firms who move their…
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Mnuchin’s Offshore Companies Underscore Need to Tackle Tax Havens in Tax Reform
Statement by FACT Deputy Executive Director Clark Gascoigne WASHINGTON – The offshore companies controlled by Treasury Secretary-designate Steven Mnuchin featured prominently in his Senate confirmation hearings held last week in Washington. It was revealed that the former investment banker managed companies with assets in Anguilla and the Cayman Islands, both widely recognized as tax havens.…
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Is the U.S. Economy Entering a “Goldilocks” Zone?
Multiple Factors Driving Optimism for Sustained Economic Growth In a video presentation discussing the post-presidential election outlook for the U.S. economy, four senior Legg Mason investment leaders focused on prospects that we may be reaching a “Goldilocks zone:” not too hot, not too cold, but just right. “This is not the start of a new…
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Promised Trump Administration Corporate Tax Cuts Could Unleash Long Overdue Cash Expenditures
“Cash to CAPEX” May be a Major Driver of U.S. Corporate Investment The prospect of lowering U.S. corporate taxes under President Donald J. Trump has raised expectations that companies will use the money saved to expand capital investment (CAPEX), viewed as long-expected and equally long overdue. Legg Mason brought together four senior investment leaders from…
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When A ‘Tax Bonanza’ Is Actually A Huge Corporate Tax Break
There is a push underway for a huge corporate tax break from the next administration. Multinational corporations owe more than $720 billion in taxes on profits stashed in tax havens. They are proposing to bring those profits back if the government lets them pay only a fraction of what’s owed. This is being sold as…