Reference no: EM13995114
1. In a short 4 to 6 sentence post a substantive response to this article (A study conducted by WalletHub analyzed the S&P 500 companies' tax bills, and WalletHub discovered that five energy corporations were in the top 10 for the highest tax bills. These companies included Anadarko Petroleum, Devon Energy and ConocoPhillips (Hardiman, 2015).
The corporate tax rate in the U.S. is high, and this causes companies to seek refuge in the international markets. While some corporations have the luxury to outsource, U.S. energy corporations cannot take advantage of that. Their products and workers are within the U.S., according to WalletHub analyst Jill Gonzalez. Multinational corporations take advantage of off-shore transfer payments to reduce their tax rate. This method involves these corporations creating foreign subsidiaries to mine or produce raw materials within countries with lower tax rates, and then the U.S. entity buys the raw materials above costs (Hardiman, 2015).
Hardiman, S. (2015, October 24). Energy companies hit with higher tax bills, study finds. Retrieved October 26, 2015, from Tusla World: http://www.tulsaworld.com/business/energy/energy-companies-hit-with-higher-tax-bills-study-finds/article_d4ff186b-4966-5f01-8a5f-32ff8f5bd162.html)
2. Can you summarize this article so my classmates can response to the article. http://www.dailyfinance.com/2015/02/28/danger-lying-contributions-taxes/