Welcome to the Taxtionary
Welcome to the SalesFactor.org Taxtionary page, the one stop spot for clearly defined info-graphics of tax vocabulary. Feel free to share these graphics, but please do provide attribution to SalesFactor.org.
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1. the ability of U.S. multinational companies to avoid paying U.S. taxes on overseas profits through a potentially infinite delay of returning those profits to the U.S.
- a corporation choosing how much it will charge itself for goods and services it sells across a national border.
- a foreign county or corporation used to avoid or reduce income taxes, especially by investors from another country.
Tax Avoidance vs. Tax Evasion:
- tax avoidance is the use of quasi-legal methods to modify a corporations financial situation to lower the amount of income tax liability.
- tax evasion is the use if illegal methods to modify an individuals or corporations financial situation to lower the amount of income tax liability.
Race to the Bottom:
- the downward trajectory of tax rates when countries lower rates as the primary way to attract corporate money/investment.