| MoHasanie said: That's true, but there must be some sort of catch, otherwise every firm would want to be based in Switzerland. I was reading a news article this week that said because costs are so high there, they were voting on increasing the minimum wage to $25 :O . But they decided against it. But imagine, if that's the minimum wage they thought was fair, then I wonder what excecutives or top professionals earn there... The Starbucks thing is very interesting. I think Google, Amazon and loads of companies that operate in Europe base themselves in Ireland, so they don't have to pay taxes in the countries they are based in. |
Many major corporations (the ones who can afford legal departments and the resources to facilitate such moves) are reliant on their Government's contracts for a major source of their revenues, and they will lose out on those contracts if they move out.
There's also the fact that in the US, no corporations actually pay 35%, the actual average is just 12.6% (http://money.cnn.com/2013/07/01/news/economy/corporate-tax-rate/). Exemptions, credits, offshore accounts all make sure that the 35% tax rate is just for publicity only.
