Tax laws chasing companies away

It’s easier than ever for corporations to move operations overseas. And if the federal government doesn’t realize this soon, more and more companies may follow the example of Dallas-based Ensco International and reincorporate overseas. Ensco’s decision, announced last month, subject to approval by the majority of its shareholders, is the latest in a series of moves by energy companies to leave the U.S. and relocate in Europe.

In the age of the Internet, with technology converging around the globe and engineering talent abundant in many nations, multinationals and even smaller companies can readily shift research and development, product-development, manufacturing and overall management out of the United States. Increasingly, executives are finding it tough to justify keeping major parts of their business here

A shocking thought for sure. A shrinking corporate tax base couldn’t be happening at a worse time with the widening U.S. deficit and the difficulty of floating more debt. Recently, our largest creditors, notably China and the OPEC countries, signaled reluctance to add to their U.S. dollar holdings.

After Japan, America has the world’s highest corporate-tax rate