Tax Shopping: For or Against?

[Dad2three]

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.

Warren Buffett: ‘It Is A Myth’ That U.S. Corporate Taxes Are High


Reality Check: Effective U.S. Corporate Tax Rate Much Lower Than Most Other Developed Nations


U.S. corporate taxes that were actually paid (the effective rate) fell to a 40 year low of 12.1 percent in fiscal year 2011, despite corporate profits rebounding to their pre-Great Recession heights. The U.S. both taxes its corporations less and raises less in revenue from corporate taxes than its foreign competitors:

Of course, it is theoretically possible (OBAMA PROPOSAL) to lower the U.S. corporate income tax rate while simultaneously raising revenue to help reduce the federal deficit by closing loopholes and cracking down on tax havens. But Republicans have absolutely no interest in that.


Reality Check: Effective U.S. Corporate Tax Rate Much Lower Than Most Other Developed Nations | ThinkProgress


U.S. corporate tax collections totaled only 1.7% of GDP in 2009, the most recent year for which complete data is available, according to the Organization for Economic Cooperation and Development.

On that measure, the United States had the third lowest corporate tax burden, behind France and Germany. The worldwide average was 2.8%.



The corporate tax myth - Feb. 23, 2012

 

[Dad2three]

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 best way to judge the efficiency of the corporate tax code is to look at results, and in the US, corporate tax topped out at 1.3% of GDP last year. Most industrialized countries collect DOUBLE that, around 2.5% of GDP. The corporate tax rate is a useless parameter in the face of these numbers.

 

[Dad2three]

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.

U.S. corporate taxes that were actually paid (the effective rate) fell to a 40 year low of 12.1 percent in fiscal year 2011, despite corporate profits rebounding to their pre-Great Recession heights. The U.S. both taxes its corporations less and raises less in revenue from corporate taxes than its foreign competitors:

Reality Check: Effective U.S. Corporate Tax Rate Much Lower Than Most Other Developed Nations | ThinkProgress

 

[Dad2three]

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.

Let them keep it offshore, NO MORE TAX HOLIDAYS BY THE GOP, WE NEED THE JOBS!!!

 

[Dad2three]

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.

Cool, good luck with that. Want to bring them back to the US as dividends? PAY THE GAWDDAMN TAXES!

 

[Dad2three]

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.

Weird, Obama proposed 28% and getting rid of loopholes, GOP of course said NO

 

[Dad2three]

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.

Senator Carl Levin, Democrat of Michigan, has introduced a bill that would halt corporate inversions.

What do you think the party of no is saying? lol

 

[Dad2three]

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.

The GAO reported that large U.S. corporations paid federal income taxes amounting to about 13 percent of its pretax worldwide income in 2010

 

[Dad2three]

"These transactions are about tax avoidance, plain and simple," Sen. Carl Levin, D-Michigan, who introduced a bill in May to restrict the deals, said in a release. "Our legislation would clamp down on this loophole to prevent corporations from shifting their tax burden onto their competitors and average Americans."

 

[Dad2three]

U.S. businesses have another edge over countries with lower tax rates: They don't pay a Value Added Tax or VAT, a type of sales tax.

All other developed nations raise a significant part of their tax revenue through VATs, but it is not included in the comparisons of corporate tax collections.

 

[OnePercenter]

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!

Which would be redistribution. Something your side is against.

 

[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.

Warren Buffett: ‘It Is A Myth’ That U.S. Corporate Taxes Are High


Reality Check: Effective U.S. Corporate Tax Rate Much Lower Than Most Other Developed Nations


U.S. corporate taxes that were actually paid (the effective rate) fell to a 40 year low of 12.1 percent in fiscal year 2011, despite corporate profits rebounding to their pre-Great Recession heights. The U.S. both taxes its corporations less and raises less in revenue from corporate taxes than its foreign competitors:

Of course, it is theoretically possible (OBAMA PROPOSAL) to lower the U.S. corporate income tax rate while simultaneously raising revenue to help reduce the federal deficit by closing loopholes and cracking down on tax havens. But Republicans have absolutely no interest in that.


Reality Check: Effective U.S. Corporate Tax Rate Much Lower Than Most Other Developed Nations | ThinkProgress


U.S. corporate tax collections totaled only 1.7% of GDP in 2009, the most recent year for which complete data is available, according to the Organization for Economic Cooperation and Development.

On that measure, the United States had the third lowest corporate tax burden, behind France and Germany. The worldwide average was 2.8%.



The corporate tax myth - Feb. 23, 2012

Warren Buffett: ‘It Is A Myth’ That U.S. Corporate Taxes Are High

Isn't that the guy who lies about his secretary paying a higher tax rate than he does?

 

[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 best way to judge the efficiency of the corporate tax code is to look at results, and in the US, corporate tax topped out at 1.3% of GDP last year. Most industrialized countries collect DOUBLE that, around 2.5% of GDP. The corporate tax rate is a useless parameter in the face of these numbers.

in the US, corporate tax topped out at 1.3% of GDP last year

What would it be if you added S Corp taxes?

 

[Toddsterpatriot]

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.

Let them keep it offshore, NO MORE TAX HOLIDAYS BY THE GOP, WE NEED THE JOBS!!!

Yeah, that offshore money creates lots of jobs here. Doofus.

 

[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.

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.

Cool, good luck with that. Want to bring them back to the US as dividends? PAY THE GAWDDAMN TAXES!

Pay 35% taxes and then get the dividends taxed again at the individual level?

Stupidity only a liberal could endorse!

 

[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.

Senator Carl Levin, Democrat of Michigan, has introduced a bill that would halt corporate inversions.

What do you think the party of no is saying? lol

A foreign company could still buy a US corp and accomplish the same thing.

I don't know what the party of no is saying.

I'll say something, Fuck you Levin, you stupid commie piece of shit.

 

[Toddsterpatriot]

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!

Which would be redistribution. Something your side is against.

Yes it would, just not in the way you think.

 

[Crystalclear]

For, every business owner would move their head quarter in order to pay lower corporate taxes. It's the fault of the government and higher corporate tax rates in the US that businesses are moving their headquarters.

 

[Dad2three]

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

Warren Buffett: ‘It Is A Myth’ That U.S. Corporate Taxes Are High


Reality Check: Effective U.S. Corporate Tax Rate Much Lower Than Most Other Developed Nations


U.S. corporate taxes that were actually paid (the effective rate) fell to a 40 year low of 12.1 percent in fiscal year 2011, despite corporate profits rebounding to their pre-Great Recession heights. The U.S. both taxes its corporations less and raises less in revenue from corporate taxes than its foreign competitors:

Of course, it is theoretically possible (OBAMA PROPOSAL) to lower the U.S. corporate income tax rate while simultaneously raising revenue to help reduce the federal deficit by closing loopholes and cracking down on tax havens. But Republicans have absolutely no interest in that.


Reality Check: Effective U.S. Corporate Tax Rate Much Lower Than Most Other Developed Nations | ThinkProgress


U.S. corporate tax collections totaled only 1.7% of GDP in 2009, the most recent year for which complete data is available, according to the Organization for Economic Cooperation and Development.

On that measure, the United States had the third lowest corporate tax burden, behind France and Germany. The worldwide average was 2.8%.



The corporate tax myth - Feb. 23, 2012

Warren Buffett: ‘It Is A Myth’ That U.S. Corporate Taxes Are High

Isn't that the guy who lies about his secretary paying a higher tax rate than he does?

No


March 4, 2013
Buffett says he's still paying lower tax rate than his secretary


Buffett has been advocating for a minimum tax on top wage earners -- those like himself who benefit from the fact that capital gains are taxed at a lower rate than regular earnings. His proposal, popularly known as the Buffett rule, has the support of the Obama administration but is strongly opposed by Republicans in Congress.

Buffett says he's still paying lower tax rate than his secretary - Mar. 4, 2013

 

[Dad2three]

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 best way to judge the efficiency of the corporate tax code is to look at results, and in the US, corporate tax topped out at 1.3% of GDP last year. Most industrialized countries collect DOUBLE that, around 2.5% of GDP. The corporate tax rate is a useless parameter in the face of these numbers.

in the US, corporate tax topped out at 1.3% of GDP last year

What would it be if you added S Corp taxes?

Figure it out.