Is U.S. Being Cheated by Corporate Tax Loopholes?

REPLAY VIDEO
Your next video will start in
Pause

Recommended Videos

  • Info

  • Comments

  • VIDEO TEXT

Jan. 8 (Bloomberg) -- Bob Nardelli, founder & CEO at XLR-8, discusses corporate tax loopholes on Bloomberg Television’s “In The Loop.”

They paid zero corporate taxes in 2007, but today that they had to hire an army of lawyers and spend a lot of times looking for ways to avoid paying taxes instead of creating gdp.

I would argue again that i think it would give us -- it would give both.

We took full advantage at ge of the opportunities demise cost of taxation, which allowed us to reinvest in new business, new products, and new jobs.

We manage that business fairly well.

One of the things i learned under jack was that you have to be global.

I never had an outsourcing strategy in all of my time.

What do you mean by that?

And never had an outsourcing strategy.

I was headed global competitiveness strategy.

If the tax rate was causing me to lose business, just think about it -- if i lose business, i will lose jobs.

If it goes offshore because a competitor, whether it was siemens or abv, i was by default going to have to reduce my workforce.

If i can compete globally and still create competitiveness, create the job opportunities and be able to reinvest in our company, that is what we were after.

Take a look at this, bob nardelli.

Second only to japan in the highest corporate tax rates around the world.

The u.s., 35% versus latin america, the average tax rate, call it 27.5. and in europe and asia, 22%. if that number, 35%, were lower, would it generate jobs in the u.s.? i personally believe so.

I don't know if we should go to zero, but this is a great discussion between the business community and washington.

We should look at how we can be globally competitive.

I talked about how we need to get gdp going and that will pull jobs.

You cannot just focus on jobs if there is not an economy to underpin them.

This is the discussion to be had, to see if we can lower that rate come unto bring it back on shore and create mobile competitiveness for the u.s. economy.

And the other thing with the effective tax rate of 35%, but corporations on average paying about 13%, are we being dishonest with ourselves?

Is corporate america being dishonest?

What do you mean?

The official rate is 13%, but the average realized rate that is being paid, because of the ge's of the world, liberty media, all of these guys -- is it ultimately hurting the economy?

We are basically cheating ourselves if we are not fairly collecting what we need to support our own government.

I think the article went on to talk about loopholes.

I'm not sure they are loopholes, but legitimate legislation and policies where if you do i see title -- ic title transfer and so forth, you can avoid taxes.

And if you have talent within your company, you can utilize those.

Why not having talent within the government and simplifying tax laws so you do not need to have that?

That would be amazing.

I will be speaking about corporate taxes later today.

Tom.

Home runs the u.s. chamber of commerce and he can speak about that today.

-- tom donahoe runs the u.s. chamber of commerce and he can speak about that today.

And from the february issue of bloomberg markets magazine, the

This text has been automatically generated. It may not be 100% accurate.

Advertisement

BTV Channel Finder

Channel_finder_loader

ZIP is required for U.S. locations

Bloomberg Television in   change