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The US as tax haven
- The 2017 Tax Cut and Jobs Act reduced the top US corporate tax rate, making it lower than other leading economies in the G7 by 2023.
- By 2022, US corporate taxes as a share of total income were the lowest among OECD high-income countries.
- The US tax system allows the richest individuals to pay lower tax rates due to favorable treatment of capital gains and dividends.
- Despite common belief about tax havens being small islands, even rich countries like the UK serve as tax havens.
- The UK, with its Crown Dependencies and Overseas Territories, ranks as a major global tax haven.
- The US is a significant secrecy haven, allowing for illicit financial flows and enabling tax evasion by corporations and individuals.
- Certain US States, like Delaware and Nevada, serve as secrecy jurisdictions for money laundering and tax evasion.
- The US attracts wealth from around the world due to a combination of federal and State laws, regulations, and tax benefits.
- Multinational corporations use tactics like profit shifting to low-tax jurisdictions, resulting in significant tax revenue losses for States.
- The trend of aggressive tax planning by MNCs impacts global trade patterns and financial flows.
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