Sean King

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Knoxville, Tennessee, United States

Monday, November 1, 2010

High Tax Rates Benefit Big Business

Why? Because they don't actually pay them, while the rest of us do. So high rates create yet another barrier to entry and give larger businesses another competitive advantage:

By employing strategies known to lawyers as the "Double Irish" and the "Dutch Sandwich," Google cut its taxes by $3.1 billion in the past three years - moving most of its foreign profit through Ireland and the Netherlands to Bermuda.

Google's income shifting 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.

Is it any wonder that Google's founders (and most other billionaires) are big Democrats?

Something tells me that my small business couldn't employ the "Double Irish" or "Dutch Sandwich" strategies, and would probably be hounded by IRS agents if it tried.

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