Companies' future tax rates may hinge on election results

  • 📰 ChannelNewsAsia
  • ⏱ Reading Time:
  • 57 sec. here
  • 2 min. at publisher
  • 📊 Quality Score:
  • News: 26%
  • Publisher: 66%

South Africa News News

South Africa South Africa Latest News,South Africa South Africa Headlines

Democratic presidential candidate Joe Biden has promised to push his own tax proposals on 'day one' if he wins the election on Tuesday - including ...

Democratic presidential candidate Joe Biden has promised to push his own tax proposals on"day one" if he wins the election on Tuesday - including raising the corporate tax rate to 28per cent and doubling the rate to 21per cent on overseas profits from patents, copyrights and trademarks.

The higher rate on intellectual property would"be a significant change for a lot of companies" at a time when economic recovery from the coronavirus pandemic for employers is uncertain, said Daniel Bunn, vice president of global projects at the conservative Tax Foundation."It's really important to recognize how serious of a tax hike this will be for companies and how out of line it will put our tax system relative to other countries," Bunn said.

At the end of U.S. President Donald Trump's first year in office, the government cut the corporate federal income tax rate to 21per cent from 35per cent, requiring some companies to pay less to federal coffers. Reuters reviewed annual reports going back to 1999 for seven U.S. multinational consumer companies in the S&P 100 that an October report from WalletHub said had the lowest 2019 overall tax rates.Taco Bell parent Yum Brands Inc also reported its lowest rate in 2019 of 5.7per cent. The Coca-Cola Co's effective tax rate was 16.7per cent last year, its lowest rate in two decades except for 2010, when it posted the same rate.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 6. in ZA

South Africa South Africa Latest News, South Africa South Africa Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Stocks to watch: Singtel, Wilmar, Yanlord, Mapletree NAC Trust, Hotel GrandTHE following companies saw new developments that may affect trading of their shares on Monday: Read more at The Business Times.
Source: BusinessTimes - 🏆 15. / 51 Read more »