This is an excerpt from the following article regarding corporations and their “tax havens”:

Citigroup had 427 units in 23 countries, including 91 subsidiaries in Luxembourg and 90 in the Cayman Islands. Morgan Stanley had 273 units, News Corp. had 152 and Bank of America had 115. Procter & Gamble Co. had 83 subsidiaries and Pfizer Inc. had 80 in the jurisdictions.

Several major corporations have announced plans to leave Bermuda, a leading offshore business center, amid the global financial crisis and fears of tighter tax rules. Tyco Electronics Ltd., which makes electronic components, and Foster Wheeler Ltd., an engineering and construction company, are reincorporating in Switzerland – which has a tax treaty with the U.S. – for tax and other reasons. Covidien Ltd., a health care products company, is heading to Ireland.

When major corporations incorporate in foreign countries with more attractive tax rates, especially when the vast majority of their business is in the United States, wouldn’t a normal person ask themselves why these companies go through this effort? Transitively, would not that questioning also lead to a strategic initiative that would stop these corporations from doing so? Apparently not.

The THOR Plan fully details the positive benefits of cutting the corporate tax rate. There are many of them. What are the positive benefits of leaving the already inflated rates or, even worse, increasing it? It only encourages businesses to move more jobs and subsidiaries overseas.

http://apnews.myway.com/article/20090116/D95OHIB80.html