New data from the Internal Revenue Service suggests that American corporations controlled by foreigners are now responsible for a larger share of total U.S. corporate assets and earnings than ever before - despite a U.S. corporate tax rate that is among the highest in the world.The most recently released IRS Statistics of Income bulletin revealed that the total receipts of foreign-controlled domestic corporations in 2005 reached $3.5 trillion, which is $450 billion more than in 2004, twice the 1996 level and almost 90 times the level reported in 1971.
These FCDC receipts in 2005 represented 13.7 percent of all U.S. corporate receipts, also an all-time high. Just 10.7 percent of all corporate receipts came from FCDCs in 1996, and just 2.1 percent in 1971. IRS researchers define an FCDC as any domestic corporation in which over 50 percent of the stock is owned by a foreign individual, corporation, partnership, estate or trust.
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