Executives concerned about tax rates
Tax executives want corporate tax system to be overhauled
Corporate tax executives have cited management of tax rates and taxation of
international operations as their top two business tax concerns in 2009,
according to a new survey.
The US currently has the second-highest statutory corporate tax rate, a
significant concern for domestic-based businesses competing with foreign
competitors, WebCPA reported.
However, while most tax executives at 178 large US-based and foreign-based
multinational corporations believe that there is a need for a comprehensive
overhaul of the current tax structure, less than 2% believe that it is likely in
the coming year, WebCPA said.
Although the statutory corporate tax rate is comparatively high in the US,
businesses typically take advantage of various tax breaks to reduce their
effective tax rate. Many companies are also expected to declare a loss this year
due to the recession, which will leave them owing no taxes, WebCPA said.
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