"Insourcing American Jobs"

[Steelplate]

There much more to the story as usual. Here's the full text of HR 2847:

http://www.zerohedge.com/sites/default/files/HIRE act.pdf

Any funds transferred from the US to any overseas account are subject to a new tax equal to 30 percent of the total amount of the payment – unless the payment is sent to a foreign bank that has agreed to report all American-owned accounts automatically and electronically to the US government.


The first half of the bill contains incentives to invest and hire domestically. The second half starting at TITLE V on page 27 contains unprecedented capital controls and seizures of US assets held overseas in foreign financial institutions. The bill essentially taxes 30% of all US-sourced capital outflows lol. Not only that, if a foreign bank holds a US owned account, said foreign bank must by order of US federal law comply to disclose full details and Taxpayer Identification Number of all US account holders doing business with said foreign bank or else close the accounts. All transfers between US sources and said foreign bank will also be subject to 30% withholding.

So starting Jan 1st 2013, foreign banks across the globe are going to have to choose between:

a) complying with the US' coercive and impractical disclosure requirements while bearing all the expense of acting essentially as a foreign branch of the IRS;

b) forfeiting 30% of their US asset deposits;

c) take a catastrophic hit and stop investing in US assets altogether; or

d) call the US' bluff and challenge the authority of the US to unilaterally supersede international law in financially regulating and taxing the banking industries of foreign sovereign nations.

This should get very interesting; Switzerland is already at odds with the US over this and they will not be the only ones. Can you imagine Russia not taking exception the US' liquidation of Russian banks? For the past 40 years we've used our military hegemony to impose USD demand upon the rest of the world, now we'll need it in order to seize those USDs from the rest of the world.

Yeah, fuck...why should American Companies pay taxes on ALL of their income... they should be allowed to evade taxation by any means necessary, right?

 

[Steelplate]

Tax reform has only made the problem worse so far, why do you think it will make it better?

How has tax reform made the problem worse?
I realize asking for a rational explanation, possibly with facts to support it, is like asking a tree for the time. But we try.

Tax cuts from Obama and Bush have only succeeded in widening the gap between the middle class and the uber wealthy.

Yeah... the rungs on the ladder of success keep getting further and further apart, don't they?

 

[imbalance]

There much more to the story as usual. Here's the full text of HR 2847:

http://www.zerohedge.com/sites/default/files/HIRE act.pdf

Any funds transferred from the US to any overseas account are subject to a new tax equal to 30 percent of the total amount of the payment – unless the payment is sent to a foreign bank that has agreed to report all American-owned accounts automatically and electronically to the US government.


The first half of the bill contains incentives to invest and hire domestically. The second half starting at TITLE V on page 27 contains unprecedented capital controls and seizures of US assets held overseas in foreign financial institutions. The bill essentially taxes 30% of all US-sourced capital outflows lol. Not only that, if a foreign bank holds a US owned account, said foreign bank must by order of US federal law comply to disclose full details and Taxpayer Identification Number of all US account holders doing business with said foreign bank or else close the accounts. All transfers between US sources and said foreign bank will also be subject to 30% withholding.

So starting Jan 1st 2013, foreign banks across the globe are going to have to choose between:

a) complying with the US' coercive and impractical disclosure requirements while bearing all the expense of acting essentially as a foreign branch of the IRS;

b) forfeiting 30% of their US asset deposits;

c) take a catastrophic hit and stop investing in US assets altogether; or

d) call the US' bluff and challenge the authority of the US to unilaterally supersede international law in financially regulating and taxing the banking industries of foreign sovereign nations.

This should get very interesting; Switzerland is already at odds with the US over this and they will not be the only ones. Can you imagine Russia not taking exception the US' liquidation of Russian banks? For the past 40 years we've used our military hegemony to impose USD demand upon the rest of the world, now we'll need it in order to seize those USDs from the rest of the world.

Yeah, fuck...why should American Companies pay taxes on ALL of their income... they should be allowed to evade taxation by any means necessary, right?

You're missing the point. That 30% applies to all US accounts and transactions overseas not just the tax evaders and it is on top of what the honest US citizens and entities operating abroad already pay in taxes. Believe me I know; this affects me personally. I work for a US owned corporation that currently operates in Brazil. Our revenues are paid to us by the Gov of Brazil but we pay US taxes. Our assets are held and managed here in the US, so every time we transfer funds to our operations and joint ventures in Brazil, 30% of the transfer will be withheld by the US Treasury if this legislation is enforced as it seems it will be. We are a corporation that operates overseas, generates income directly from the Gov of Brazil, and pays taxes on that income to the US Gov for no other reason than because we chose to. Brazil isn't taxing us regardless, so we could've set up our asset management account as a SPV in London and paid zero taxes. But we chose to do it the honorable way and so now we might get to pay an additional 30% if we can't 'crack the code' within this new amendment to the IRC. Such is life. We are just lucky we're healthy enough to be able to adjust to this. A lot of companies won't be.

Beyond all my personal butthurt, the big issue is what it imposes upon the rest of the world forced to comply with this. It is indeed unprecedented and I've got to believe we aren't expecting everyone to just go along willingly. Instead of conducting military policy in conjunction with petroleum currency policy, will be be conducting it in conjunction with financial regulatory policy?

 

[The Rabbi]

Tax reform has only made the problem worse so far, why do you think it will make it better?

How has tax reform made the problem worse?
I realize asking for a rational explanation, possibly with facts to support it, is like asking a tree for the time. But we try.

Tax cuts from Obama and Bush have only succeeded in widening the gap between the middle class and the uber wealthy.

Actually they havent
But that isn't the problem discussed here. The problem here is outsourcing of jobs. How would increasing taxes on upper income earners help outsourcing of jobs?
Or can you pay attention that long?