Tax Shopping: For or Against?

[LoneLaugher]

Should we allow corporate inversion?

The Tax-Shopping Backstory of the Medtronic-Covidien Inversion - Forbes

 

[LoneLaugher]

Weeeeeeee! This thread is hoppin'!

Here's a nice read on the subject.

Corporations: Still Not People - Norm Ornstein - The Atlantic

 

[Avorysuds]

Get rid of the dumb tax and the money will be spent at home. More people with money to invest means more jobs, more jobs a stronger economy... Or you can keep pretending prohibition on susses will work. As long as it costs a certain amount less to avoid the tax, people/corps will avoid... Thus not only a 100% loss but the loss of what it didn't create.


The more we shift towards progressive policies then worse off we seem to be... Odd, I never see bills pass that shrink Government, not even under Obama and Dems despite them being clear that was the plan.

 

[LoneLaugher]

Get rid of the dumb tax and the money will be spent at home. More people with money to invest means more jobs, more jobs a stronger economy... Or you can keep pretending prohibition on susses will work. As long as it costs a certain amount less to avoid the tax, people/corps will avoid... Thus not only a 100% loss but the loss of what it didn't create.


The more we shift towards progressive policies then worse off we seem to be... Odd, I never see bills pass that shrink Government, not even under Obama and Dems despite them being clear that was the plan.

You are a broken record. Nobody prohibits success. What do you think of corporate inversion?

 

[Toddsterpatriot]

Should we allow corporate inversion?

The Tax-Shopping Backstory of the Medtronic-Covidien Inversion - Forbes

Stop taxing corporations on their world-wide earnings.
Reduce our highest in the world corporate rates.

 

[LoneLaugher]

Should we allow corporate inversion?

The Tax-Shopping Backstory of the Medtronic-Covidien Inversion - Forbes

Stop taxing corporations on their world-wide earnings.
Reduce our highest in the world corporate rates.

This has nothing to do with worldwide earnings.

Our corporate rates are not ACTUALLY the highest in the world.

Broken record number 2.

 

[Toddsterpatriot]

Should we allow corporate inversion?

The Tax-Shopping Backstory of the Medtronic-Covidien Inversion - Forbes

Stop taxing corporations on their world-wide earnings.
Reduce our highest in the world corporate rates.

This has bitching to do with worldwide earnings.

Our corporate rates are not ACTUALLY the highest in the world.

Broken record number 2.

This has bitching to do with worldwide earnings.

It has everything to do with worldwide earnings.
Why do you think they do it?

Our corporate rates are not ACTUALLY the highest in the world.

Who has a higher rate?

 

[peach174]

Should we allow corporate inversion?

The Tax-Shopping Backstory of the Medtronic-Covidien Inversion - Forbes

Stop taxing corporations on their world-wide earnings.
Reduce our highest in the world corporate rates.

This has bitching to do with worldwide earnings.

Our corporate rates are not ACTUALLY the highest in the world.

Broken record number 2.

Oh yes it is.
The Highest Corporate Tax Rates in the World
The U.S. currently has the highest corporate tax rate in the world among industrialized countries.

 

[peach174]

How high corporate taxes are slowing the economy.

How Apple Slows the U.S. Economic Recovery

Congress is the problem.


The first reason is that the U.S.' corporate tax rate is the second-highest in the world.

The big reason, though, is that companies are waiting for another tax holiday. This is the unintended consequence of the 2004 Repatriation Tax holiday that Congress passed in an effort to stimulate the economy. The hope was that by incentivizing companies to bring back foreign earnings with onetime low tax rates, U.S. firms would invest the money, spurring on the economy.

The last tax holiday failed to stimulate the economy, however. Most of the money went to share buybacks, rather than investments in the real economy. The tax holiday also had the unintended consequence of prompting more companies to hoard cash abroad and reclassify earnings as foreign in the hope that Congress would implement another tax holiday


Congress has no clue of what they are doing and should never be making any rules or regulations on businesses.
Most of them have never run a business, let alone know anything about how they think it should be controlled.

 

[LoneLaugher]

Stop taxing corporations on their world-wide earnings.
Reduce our highest in the world corporate rates.

This has bitching to do with worldwide earnings.

Our corporate rates are not ACTUALLY the highest in the world.

Broken record number 2.

This has bitching to do with worldwide earnings.

It has everything to do with worldwide earnings.
Why do you think they do it?

Our corporate rates are not ACTUALLY the highest in the world.

Who has a higher rate?

The earnings that these companies are avoiding taxes on are US earnings. They are moving their HQ's abroad to avoid taxes.

Our rates are high...until you factor in all the ways that companies can reduce them.

Broken record.

 

[Toddsterpatriot]

This has bitching to do with worldwide earnings.

Our corporate rates are not ACTUALLY the highest in the world.

Broken record number 2.

This has bitching to do with worldwide earnings.

It has everything to do with worldwide earnings.
Why do you think they do it?

Our corporate rates are not ACTUALLY the highest in the world.

Who has a higher rate?

The earnings that these companies are avoiding taxes on are US earnings. They are moving their HQ's abroad to avoid taxes.

Our rates are high...until you factor in all the ways that companies can reduce them.

Broken record.

They are moving their HQ's abroad to avoid taxes.

They still have to pay taxes on US earnings to the US government.
Moving the HQ shelters earnings abroad from US taxes.

 

[OnePercenter]

Should we allow corporate inversion?

The Tax-Shopping Backstory of the Medtronic-Covidien Inversion - Forbes

Stop taxing corporations on their world-wide earnings.
Reduce our highest in the world corporate rates.

The effective corporate tax in the US is 12.6% which places us number 16 in the world. How much lower should we go?

GAO: U.S. corporations pay average effective tax rate of 12.6% - Jul. 1, 2013

 

[Toddsterpatriot]

This has bitching to do with worldwide earnings.

Our corporate rates are not ACTUALLY the highest in the world.

Broken record number 2.

This has bitching to do with worldwide earnings.

It has everything to do with worldwide earnings.
Why do you think they do it?

Our corporate rates are not ACTUALLY the highest in the world.

Who has a higher rate?

The earnings that these companies are avoiding taxes on are US earnings. They are moving their HQ's abroad to avoid taxes.

Our rates are high...until you factor in all the ways that companies can reduce them.

Broken record.

By now, the problem is well-known. Medtronic owes no U.S. tax on profits earned overseas as long as the earnings stay overseas. But it would owe as much as 35 percent U.S. corporate income tax on any money it brings back to the U.S. Thus, it is cheaper to borrow (especially at today’s low interest rates) than to pay the repatriation tax. By contrast, as an Irish firm, it could pay dividends without owing any U.S. corporate tax.

See, Medtronic pays US taxes on US earnings and European taxes (for example) on European earnings. Whether the HQ is in the US, Ireland or Hong Kong.
Because their HQ is in the US, they'll owe extra taxes if they bring those (already taxed by Europe) European earnings home to the US.

If they move HQ to Ireland, no double taxation. They can now pay US shareholders those European earnings without the US taking 35%, first.

Broken record.

Yes, your ignorance is getting repetitive.

 

[Toddsterpatriot]

Should we allow corporate inversion?

The Tax-Shopping Backstory of the Medtronic-Covidien Inversion - Forbes

Stop taxing corporations on their world-wide earnings.
Reduce our highest in the world corporate rates.

The effective corporate tax in the US is 12.6% which places us number 16 in the world. How much lower should we go?

GAO: U.S. corporations pay average effective tax rate of 12.6% - Jul. 1, 2013

How much lower should we go?

Well, we could drop the rate to 15% and remove a bunch of stupid loopholes.
But that would reduce government power, the Dems will never allow it.

 

[OnePercenter]

Get rid of the dumb tax and the money will be spent at home. More people with money to invest means more jobs, more jobs a stronger economy... Or you can keep pretending prohibition on susses will work. As long as it costs a certain amount less to avoid the tax, people/corps will avoid... Thus not only a 100% loss but the loss of what it didn't create.


The more we shift towards progressive policies then worse off we seem to be... Odd, I never see bills pass that shrink Government, not even under Obama and Dems despite them being clear that was the plan.

There are only two way to create jobs; subsides or regulate. Saving taxes only makes holding accounts larger.

 

[OnePercenter]

Stop taxing corporations on their world-wide earnings.
Reduce our highest in the world corporate rates.

The effective corporate tax in the US is 12.6% which places us number 16 in the world. How much lower should we go?

GAO: U.S. corporations pay average effective tax rate of 12.6% - Jul. 1, 2013

How much lower should we go?

Well, we could drop the rate to 15% and remove a bunch of stupid loopholes.
But that would reduce government power, the Dems will never allow it.

Stupid loopholes like a yacht as a second home?

 

[LoneLaugher]

This has bitching to do with worldwide earnings.

It has everything to do with worldwide earnings.
Why do you think they do it?

Our corporate rates are not ACTUALLY the highest in the world.

Who has a higher rate?

The earnings that these companies are avoiding taxes on are US earnings. They are moving their HQ's abroad to avoid taxes.

Our rates are high...until you factor in all the ways that companies can reduce them.

Broken record.

By now, the problem is well-known. Medtronic owes no U.S. tax on profits earned overseas as long as the earnings stay overseas. But it would owe as much as 35 percent U.S. corporate income tax on any money it brings back to the U.S. Thus, it is cheaper to borrow (especially at today’s low interest rates) than to pay the repatriation tax. By contrast, as an Irish firm, it could pay dividends without owing any U.S. corporate tax.

See, Medtronic pays US taxes on US earnings and European taxes (for example) on European earnings. Whether the HQ is in the US, Ireland or Hong Kong.
Because their HQ is in the US, they'll owe extra taxes if they bring those (already taxed by Europe) European earnings home to the US.

If they move HQ to Ireland, no double taxation. They can now pay US shareholders those European earnings without the US taking 35%, first.

Broken record.

Yes, your ignorance is getting repetitive.

You are so against corporate taxes that you prefer that Ireland get what is coming to us. Brilliant strategy. These companies still get the benefits of being American companies.....they just don't have to pay for it.

You bring money into the US....it is US earnings. You want to invest that money after having obtained it in a tax deferred manner.....you set up a bullshit company HQ somewhere and go to town.

 

[Toddsterpatriot]

The earnings that these companies are avoiding taxes on are US earnings. They are moving their HQ's abroad to avoid taxes.

Our rates are high...until you factor in all the ways that companies can reduce them.

Broken record.

By now, the problem is well-known. Medtronic owes no U.S. tax on profits earned overseas as long as the earnings stay overseas. But it would owe as much as 35 percent U.S. corporate income tax on any money it brings back to the U.S. Thus, it is cheaper to borrow (especially at today’s low interest rates) than to pay the repatriation tax. By contrast, as an Irish firm, it could pay dividends without owing any U.S. corporate tax.

See, Medtronic pays US taxes on US earnings and European taxes (for example) on European earnings. Whether the HQ is in the US, Ireland or Hong Kong.
Because their HQ is in the US, they'll owe extra taxes if they bring those (already taxed by Europe) European earnings home to the US.

If they move HQ to Ireland, no double taxation. They can now pay US shareholders those European earnings without the US taking 35%, first.

Broken record.

Yes, your ignorance is getting repetitive.

You are so against corporate taxes that you prefer that Ireland get what is coming to us. Brilliant strategy. These companies still get the benefits of being American companies.....they just don't have to pay for it.

You bring money into the US....it is US earnings. You want to invest that money after having obtained it in a tax deferred manner.....you set up a bullshit company HQ somewhere and go to town.

You are so against corporate taxes that you prefer that Ireland get what is coming to us.

Us? Please elaborate.

You bring money into the US....it is US earnings

Unless your HQ is in another country.

We're practically the only major country in the world that taxes world wide income.
Combined with our highest in the world tax rates, I'm surprised more companies haven't moved.

 

[Toddsterpatriot]

The effective corporate tax in the US is 12.6% which places us number 16 in the world. How much lower should we go?

GAO: U.S. corporations pay average effective tax rate of 12.6% - Jul. 1, 2013

How much lower should we go?

Well, we could drop the rate to 15% and remove a bunch of stupid loopholes.
But that would reduce government power, the Dems will never allow it.

Stupid loopholes like a yacht as a second home?

Hey, let's put a luxury tax on big boats.
That'll teach those rich jerks!

 

[Dad2three]

Get rid of the dumb tax and the money will be spent at home. More people with money to invest means more jobs, more jobs a stronger economy... Or you can keep pretending prohibition on susses will work. As long as it costs a certain amount less to avoid the tax, people/corps will avoid... Thus not only a 100% loss but the loss of what it didn't create.


The more we shift towards progressive policies then worse off we seem to be... Odd, I never see bills pass that shrink Government, not even under Obama and Dems despite them being clear that was the plan.

Would Another Repatriation Tax Holiday Create Jobs?

A proposal for another repatriation tax holiday—reducing U.S. tax owed by U.S. companies on the accumulated earnings of their foreign subsidiaries for one year

The current proposal would cut taxes, which is generally a good thing, but if another repatriation tax holiday were enacted, one should expect a similar result as last time: specifically, a surge in repatriations and little appreciable increase in domestic investment or job creation. The repatriation holiday would have little or no effect on investment and job creation, the key to the whole issue, simply because the repatriating companies are not capital-constrained today. Any investment, any action that they would deem worthwhile today can be and is being financed by current and accumulated earnings.


Would Another Repatriation Tax Holiday Create Jobs?