According to a new study released Friday by UHY, an international accounting firm network, the corporate tax rate in major economies around the world has fallen to an average of $25.1%. The rates have been decreasing in recent years.
The G7 average rate for corporations earning $1M was 32% in 2014 – 2015. That rate was only 26% in 2020 – 2021, but tax rates are expected to climb in the near future.
Many industrialized nations are raising tax rates, to shore up their financial house now that economies have reopened from the pandemic. Our new administration has pledged to increase the corporate tax rate from 21% to 28%, but given resistance from the other side of the aisle and their tanking poll numbers, this may never come to fruition.
The next time you think of moving your company to another country to save on income tax rates, be careful. If you move to Japan, the tax rate is only 38.2%.
Let me leave you with this.
I’ve received several telephone calls from worried investors in the past couple of weeks. The overall tone of those conversations has ranged from outright panic to surreal paranoia.
I’m not a stock jockey. I don’t even play one on TV, but I do know that disciplined investing is all about having faith in the markets and staying the course.
We’ve all been through these down markets before. Things are terrible for a while, but they always get better in time.
The market selloff in 2020 was around 35%. In 2008 it was around 50%, but the markets always came roaring back once there was something good to talk about.
And that’s the real problem, isn’t it? There just isn’t anything good to talk about.
The War in Ukraine, gas prices, inflation as a whole, and interest rate hikes only mean one thing; an uncertain future economy. Once you add in the real possibility of an economic recession, it’s almost enough to convince you to sell everything and move to a small deserted island.
But the point is that the markets always come roaring back in the future. If history teaches us one thing, it’s the fact that America is resilient.
Bad presidents, bad congresses, awful local governments, and terrible economic policies always give way to a brighter tomorrow. Have a little hope.
This too shall pass. If anything, now would be time to dollar-cost-average into great stocks that are selling at a discount.
People who give up on our great nation, generally do one thing. They fail.
We’re all going to get through this. Let’s get through it together.
Accounting Solutions Ltd. stands ready to complete our mission and purpose of protecting you, your family, and your business. Whether you need Employee Retention Credits, M&A Due Diligence, Payroll Services, or Accounting and Tax Work, you have but to ask. I’m here and I remain,
Sincerely yours,
Chris Amundson
President
Accounting Solutions Ltd.
773-267-7500
888-310-0300
www.AccountingSolutionsLtd.com
Note that the only professional services provided by Accounting Solutions Ltd. are those specified in a written communication from our office detailing the scope of services to be rendered and the terms and conditions applicable to the engagement.