Changes

The United States imposes a corporate income tax on most corporations.  However, many corporations do not pay such taxes.  For example, small businesses can elect to be "Subchapter S Corporations" where the tax burden is transferred to the owners to pay as a part of their personal income tax.  Other corporations are exempt from federal taxation under Section 501 of the Internal Revenue Code.  Many individual states and local government also assess taxes including income taxes, sales taxes, real and personal property taxes and annual fees and business license fees.

The United States imposes a corporate income tax on most corporations.  However, many corporations do not pay such taxes.  For example, small businesses can elect to be "Subchapter S Corporations" where the tax burden is transferred to the owners to pay as a part of their personal income tax.  Other corporations are exempt from federal taxation under Section 501 of the Internal Revenue Code.  Many individual states and local government also assess taxes including income taxes, sales taxes, real and personal property taxes and annual fees and business license fees.

"The [[United States]] has the highest corporate [[tax]] rate in the world at 35 percent, which puts U.S. companies at a competitive disadvantage with other countries that have lower rates (e.g. [[Canada]] at 15 percent, [[Ireland]] at 12 percent, [[Bulgaria]] at 10 percent and so on). As a result, U.S. companies are forced to move some of their operations into other countries in order to remain competitive." <ref>[http://www.washingtontimes.com/news/2012/aug/27/democrats-hypocrisy-with-the-rich/#ixzz26sd5UxcT "Democrats' hypocrisy with the rich," editorial by Richard W. Rahn (a senior fellow at the Cato Institute and chairman of the Institute for Global Economic Growth) in the ''Washington Times'' 27 August, 2012.]</ref>

"The [[United States]] has the highest corporate [[tax]] rate in the world at 35 percent, which puts U.S. companies at a competitive disadvantage with other countries that have lower rates (e.g. [[Canada]] at 15 percent, [[Ireland]] at 12 percent, [[Bulgaria]] at 10 percent and so on). As a result, U.S. companies are forced to move some of their operations into other countries in order to remain competitive." <ref>[https://www.washingtontimes.com/news/2012/aug/27/democrats-hypocrisy-with-the-rich/#ixzz26sd5UxcT "Democrats' hypocrisy with the rich," editorial by Richard W. Rahn (a senior fellow at the Cato Institute and chairman of the Institute for Global Economic Growth) in the ''Washington Times'' 27 August, 2012.]</ref>

==Multinational corporations==

==Multinational corporations==

When a company operates in several different countries, complicated rules apply to determine what taxes are owed in each country and when they are due.  In general, countries agree to [[tax treaties]] to address enforcement details.

When a company operates in several different countries, complicated rules apply to determine what taxes are owed in each country and when they are due.  In general, countries agree to [[tax treaties]] to address enforcement details.