The same tax-rate-disparity test is applied by comparing the effective tax rate
in the country where the sales were made and the effective tax rate
in the country where the manufacturing activity occurred.
In their annual filings, corporations figure out their effective tax rate
internally, and they often include what they pay to states and localities (net of deduction).
In summary, given the decline in the effective tax rate
on capital in 2009, the effective tax rate
on the cost of doing business, which is an aggregate of the effective tax rates
on labour and capital, declines from 23.
multinationals, in fact, have increased opportunities to lower their effective tax rate
by moving profits from higher-taxed jurisdictions to lower-taxed ones, and to take advantage of legitimate non-U.
The increase is primarily attributable to lower SG&A expenses, interest and other expense partially offset by lower net revenues, a lower gross margin and a higher effective tax rate
Thus, marginal effective tax rates
are better suited to capture disincentives to investment.
One development was the growing consensus among tax economists and policy analysts that capital taxation reform should focus on equalizing marginal effective tax rates
among different types of assets so as to end severe tax nonneutrality significantly affecting efficiency of capital allocation through distortion by uneven investment incentives.
As previously stated the effective tax rate
for 1994 was 40% compared to only 26% in 1993.
Although this is generally good news for married taxpayers, the change in the effective tax rates
further depreciates the "value" of NOLs.
According to Congressional testimony offered by Kenneth Kies, a tax expert with PricewaterhouseCoopers and former chief of staff of the Joint Committee on Taxation, effective tax rates
for corporations have been flat or rising over the past five years.
The company's after-tax earnings from continuing operations for the third quarter of both 1993 and 1992 benefited from reductions in the company's estimated effective tax rates
Mead, senior research associate with the Citizen's Budget Commission, said the real issues are the class shares and the effective tax rates