Richard Arthur Kelo is a tax specialist recruiter at TaxScout Inc, who has had success working with tax professionals for over five years. Through his work advising tax professionals and tax executives daily on how best to find the right position and right company he provides far more than a match service between candidate and role. He is an expert in the tax industry and knows how to connect the best tax professionals with their satisfactory roles. Kelo has therefore imparted his advice regarding taxes in the United States throughout various platforms on the internet, offering a unique view at the current issues surrounding taxation and government.
Some have noticed a shift in recent years of larger corporations and their dealings with the United States. Kelo recognises a ‘growing spate of corporate tax inversions’ wherein large corporations are relocating their legal domicile to lower-tax nations, or tax havens, while retaining their operations in the United States (read more at Ceteris Paribus – Economics from the Austrian & Monetarist traditions; political philosophy from the Classic Liberal tradition). This is a natural consequence of globalization. In Europe, where there is greater free trade movement than in the United States, corporations routinely seek to place their legal offices in more corporation tax friendly locations. Google, Microsoft, eBay, Amazon, and Twitter all have large offices in Dublin, Ireland. This is no coincidence – the Irish government has actively courted multinational companies with their substantial tax benefits that these organisations can take full advantage of. Ireland is especially attractive considering it is English speaking and its citizens enjoy high levels of education.
This is seen as a loss in developed countries with higher tax rates, as companies will eschew developing their legal offices there in order to avoid the high taxation. It is important to note, however, that although Ireland enjoyed a period of fast-growing economic success, it also turned into the fastest collapsing economy during the crisis. This brought a huge blow to employment rates and Ireland were forced to seek a bailout, as they did not have the support of higher corporation tax. For the everyday Irishman, its country’s lower taxation rates for multinationals struck them hard in harsher times.
So there is no magical answer, especially now when all countries have had to suffer setbacks in the wake of the economic recession. Governments need to cooperate together more in order to protect the jobs and wellbeing of their own citizens, and to protect homegrown businesses. Read more from Rick Kelo on MSNBC.