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Foreign Corporate Tax Rate

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Suppose England raised its corporate tax rate by 1 percentage point from 40% to 41%. How would this increase affect the economics of a U.S.-U.K. foreign expansion project?

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This solution discusses the affect of an increase in corporate tax rates in 220 words.

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The increase in the corporate tax rate from 40% to 41% will prevent some of the offshore investments coming into England from US based corporations as UK's attractiveness as an investment decision will decline as a result of this increase in taxes. Foreign companies who wish to earn more profits in England by expanding their ...

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Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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