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1 Kyle Pomerleau, How Much Do U.S. Multinational Corporations Pay in Foreign Income Taxes 1 (2014)

handle is hein.taxfoundation/taxfaag0001 and id is 1 raw text is: TxS How Much Do U.S. Multinational FOUNDATION Corporations Pay in Foreign Income Taxes? May. 2014 By Kyle Pomerleau No. 432 Economist Key Findings * The United States' worldwide system of corporate taxation requires multinational corporations to pay taxes twice, first to the foreign country in which they do business and then to the IRS after they repatriate their profits. * Multinational corporations reported paying $128 billion in corporate taxes to foreign countries on $470 billion of taxable income in 2010, according to most recent IRS data. * Over the past eighteen years, foreign corporate taxable income has grown by about 250 percent and foreign corporate taxes paid by 265 percent, while the effective tax rate has remained around 26 percent. * The effective tax rate on foreign income was 27.2 percent in 2010, prior to paying additional taxes to the United States. * More than 60 percent of all reported foreign taxable income was earned in Europe and Asia in 2010. * The effective tax rate faced by U.S. multinationals abroad varies substantially by region and country and is higher than 60 percent in some nations. * While some corporations pay low effective rates in some countries on foreign income, U.S. multinationals faced effective rates over 20 percent on most income earned overseas, prior to paying taxes to the United States. * 60 percent of income earned abroad was by manufacturers. Most was income from petroleum and coal manufacturers, who paid an average effective tax rate of 36 percent.

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