This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

High Taxes, Abusive Enforcement Causing Businesses, Citizens to Flee America

NEW YORK (TheStreet) -- President Obama, as promised, is changing America.

High taxes and abusive enforcement are compelling businesses and ordinary citizens to leave the country altogether.

The United States has much higher corporate tax rates than other industrialized countries, and increasingly, the Internal Revenue Service pursues more aggressive enforcement tactics than foreign tax authorities do.

Walgreens Never Said It Would Do an Inversion

The U.S. stands alone among industrialized countries by requiring U.S. businesses to pay taxes on profits from overseas operations and investments, in addition to taxes paid to foreign governments.

Of course, what American corporations actually pay varies a lot, thanks to many exemptions, deductions and provisions to delay taxes; however, the average combined U.S. and foreign tax burden on profits is about 30%, whereas the average for foreign rivals is about 23%.

Entrepreneurs pay some of the highest tax rates in the world on unincorporated U.S.-based businesses. Regardless of where income is earned, they often pay federal, state and local taxes in excess of 50%, and must pay both U.S. and foreign taxes on overseas income.

Ordinary citizens permanently living and working abroad also must pay U.S. and foreign taxes, face burdensome dual filing requirements and abusive penalties. U.S. tax laws can impose penalties of more than $1 million on unpaid taxes of as little as $20,000.

U.S. bank reporting requirements to combat terrorism and tax evasion are so much more burdensome than the requirements in European countries and impose such terrible penalties for unintentional reporting errors, that foreign banks will not permit smaller U.S. companies and citizens to open checking accounts. Imagine trying to run a small sales organization or live and work in Rome without a local banking account to pay bills.

4 Stocks Warren Buffett Is Selling in 2014

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,154.00 +122.86 0.72%
S&P 500 2,001.93 +17.80 0.90%
NASDAQ 4,553.8510 +34.9490 0.77%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs