Ability Quote by John F. Kennedy
“In those countries where income taxes are lower than in the United States, the ability to defer the payment of U.S. tax by retaining income in the subsidiary companies provides a tax advantage for companies operating through overseas subsidiaries that is not available to companies operating solely in the United States. Many American investors properly made use of this deferral in the conduct of their foreign investment.”
About This Quote
Source Speech: Economic Policy Remarks, United States, 1961
Companies can lower their U.S. tax burden by keeping earnings in foreign subsidiaries, a benefit unavailable to domestic‑only firms.
In simple terms: Foreign subsidiaries let firms defer U.S. taxes, reducing overall tax cost.
Key Takeaway
Use offshore structures to defer taxes where legal.
Themes
tax strategy
international business
corporate finance
Mood
analytical
cautious
Type
policy
financial
When to use this quote
- multinational corporations
- investment planning
- tax compliance
- financial reporting
Key Concepts
deferral
tax advantage
subsidiary structure
Questions to Reflect On
- Is deferral still advantageous after recent tax reforms?
- How do anti‑avoidance rules affect offshore strategies?
A Different Perspective
Tax deferral can attract scrutiny and may be limited by anti‑avoidance rules.
