To: President Donald Trump
Corporate taxes
Corporations should be classified for tax purposes based on sales and headquarter locations.
Why is this important?
Corporations in the United States can create an office in a state with low sales taxes. Corporations may also create subsidiaries in countries with low tax rates, shielding profits from taxation.The profits from the corporation are then shielded from the sales or state income taxes from those states and country in which the company is headquartered.