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Schneed10 · 12-21-2017, 10:13 PM

Example. Firm currently pays 100 in taxes to China, and 20 in the US.

Now with the new rate, the firm shifts its base to the US. Now the 20 it was paying to the US goes down to 12, it stops paying the 100 to China, and instead pays 80 to the US.

Add that up. Before, corporation paid 120 in total. Now it pays 92.

Before, the US collected 20. Now it collects 92.

Corporation benefits, US benefits, China loses. This is a simplified illustration but that’s the concept.

12-21-2017, 10:13 PM	#90
Schneed10 A Dude Join Date: Feb 2005 Location: Newtown Square, PA Age: 46 Posts: 12,458	Re: Tax bill Example. Firm currently pays 100 in taxes to China, and 20 in the US. Now with the new rate, the firm shifts its base to the US. Now the 20 it was paying to the US goes down to 12, it stops paying the 100 to China, and instead pays 80 to the US. Add that up. Before, corporation paid 120 in total. Now it pays 92. Before, the US collected 20. Now it collects 92. Corporation benefits, US benefits, China loses. This is a simplified illustration but that’s the concept. __________________ God made certain people to play football. He was one of them.