What will be the effect of Obama new taxes on competitiveness of American hi-tech corporations abroad?
Thursday, October 29th, 2009 at
11:03 am
Comments (1)
Lets say there are two competing companies USAMicrochip and IndiaMicrochip. Before Obama both companies paid 35% tax on American operations and 10% tax on Indian operations. The field was level.
Under Obama new rules both companies will again pay 35% tax on American operations, and in India
USAMicrochip will pay 35% tax (10% to Indian government and 25% to Obama)
IndiaMicrochip will pay 10%.
Question: which company wins Indian market of microchips?