Companies Flee U.S. Tax System by Reincorporating Abroad

Is there a reason (honest question) why we have corporate taxes in the first place? Why not tax the money when it passes from the corporation to a physical person? Wouldn't that simplify things in many respects, and make evasion more difficult? And be good for American business?

As an example, Apple has $100 billion parked in offshore subsidiaries that it refuses to repatriate to the US because the full 35% tax rate would apply. If the US were more tax competitive, this sort of thing wouldn&#x27;t be happening.<p><a href="http://www.huffingtonpost.com/2013/04/24/apple-debt-offshore-cash_n_3142063.html" rel="nofollow">http:&#x2F;&#x2F;www.huffingtonpost.com&#x2F;2013&#x2F;04&#x2F;24&#x2F;apple-debt-offshore...</a><p>[EDIT: fixed to read $100 billion, not million]

This is what happens when you raise taxes to absurd levels. People leave -- especially the rich. If you have a company that provides products or services globally (instead of a business that requires a physical presence such as WalMart or a gas station), what incentive do you have to be based in America?

As an American, this looks like a short list of companies to boycott. I don&#x27;t want anything to do with companies trying to get out of paying their fair share of taxes in the US.

For comparison - global corporate tax rates:<p><a href="http://www.kpmg.com/Global/en/services/Tax/tax-tools-and-resources/Pages/corporate-tax-rates-table.aspx" rel="nofollow">http:&#x2F;&#x2F;www.kpmg.com&#x2F;Global&#x2F;en&#x2F;services&#x2F;Tax&#x2F;tax-tools-and-res...</a>

As of a few years ago, the USA is the only G20 nation that taxes corporations on their overseas earnings. (Japan was the last other holdout).

As it gets easier &amp; easier for smaller companies &amp; individuals to setup international businesses, I think this is going to happen on a major scale outside of mega-corporations.

Of the sixteen companies in the table, four have moved to the UK, and three to UK overseas territories. Doesn&#x27;t say much for our tax regime, does it?