Skip to main content

View Diary: Analysis: Dow 30 companies show what a joke calling corporate tax burden 'heavy' has become (70 comments)

Comment Preferences

  •  its all transfer pricing. (3+ / 0-)
    Recommended by:
    VClib, Meteor Blades, MPociask

    a lot of big companies get preapproval from the IRS for their transfer pricing regimes by which profits are shuttled between subs.  the problem is that transfer pricing just has to be "reasonable," which means the IRS will only go on the attack if the prices are patently unreasonable and abusive.

    so the IRS should know quite a bit, but the law makes it structurally difficult to enforce.

    one promising approach that's being kicked around is using a common state method of "apportionment," wherein income is sourced to taxing jurisdictions based on some blended rate comprising things like where sales occur, where the workforce is located, and where real property is.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site