Democrats and Republicans Are Quietly Planning a Corporate Giveaway—to the Tune of $400 Billion

[Confounding]

They're extorting the government and cheating Americans with the support of both parties.

Democrats and Republicans Are Quietly Planning a Corporate Giveaway—to the Tune of $400 Billion

Young people are the good news of 2016. They see the stressful realities of American life more clearly than their elders and are rallying around the straight talk of Bernie Sanders. Meanwhile, the big hitters back in Washington politics are working on an ugly surprise not just for the kids but for all of us—another monster tax break for US multinational corporations. The bad news is that key leaders of the Democratic Party—including the president—are getting on board with Republicans, despite some talk about confronting income inequality. Influential Democrats intend to negotiate with Republican counterparts on the size and terms of post-facto tax “forgiveness” for America’s globalized companies. This is real money they’re talking about—a giveaway of hundreds of billions.

Why haven’t voters heard about this from candidates? Because Republicans and Democrats both know it would make angry voters even angrier. The major multinationals complain about a tax problem that most citizens would love to have for themselves: Thanks to a loophole in the tax code, the companies do not have to pay US taxes on profits they have earned in foreign countries until they bring the money home to American shores. Altogether, the globalized US companies have accumulated $2.1 trillion in untaxed profits, most of it parked in overseas tax havens.

The multinationals are waiting for Congress to forgive them their debts. That is, the US companies insist they won’t bring the money home and pay the taxes they owe until Washington pols steeply reduce the rate to bargain-basement levels. That’s tax “forgiveness” on a grand scale. What the companies also demand is a permanently lowered tax rate on their future earnings. Some leading Republicans advocate eliminating taxation of foreign corporate income entirely. Imagine if average citizens were given this kind of discretion for their personal income tax. You could tell the IRS you regard your tax liability as unfair, so you’re not going to pay it until Congress enacts a lower rate. Don’t try this dodge in real life. They will come after you.

 

[LA RAM FAN]

Thats our great ONE PARTY SYSTEM of Demopublicans and Reprocrats at work for ya.

 

[Zander]

The USA is the only country in the world that taxes corporations on their worldwide earnings. We need to move away from a "worldwide" tax system to a "territorial" one where corporations would only owe U.S. tax on profits made in the United States. Any profits they make offshore would be taxed by the countries where those profits were made.

 

[OKTexas]

How do you forgive something that isn't owed?

 

[SuperDemocrat]

Is there anything we can do about this? Even if we had someone in there who was really against this it couldn't be stopped.

 

[Zander]

We have the second highest corporate tax rate in the world, and we charge it on worldwide earnings. It's why corporations are leaving and not repatriating their overseas earnings. It is why we are seeing massive waves of corporate inversions and it is why US companies are investing in foreign countries.

Lower the tax rate to 15% , and only tax US earnings - the problem is solved and hundreds of billions of $$ come home to be invested HERE.

 

[eagle1462010]

Inversion has been in the debates. The tax rates are much much lower in places like Canada, the UK, and Ireland.................

Corporate Inversions Caused by High U.S. Tax Rate on Companies

The U.S. has the highest tax rate on businesses in the developed world. Our corporate tax rate (including states) is 39.1 percent. Flow-through firms face an even higher rate, approaching 50 percent depending on their state.

Compare this to business taxes overseas, which average about 25 percent in the developed world.

 

[TNHarley]

How do they owe anything?
I would like to see the code reformed majorly and we don't punish companies for bringing money here. We want the money here. A tax reform could fix that where they pay plenty of taxes at a competitive rate while cutting out all f these loopholes.
I kind of agree with Zander but I'm not sure yet lol. Maybe we could work on something like that when we get going again.
one has to remember : we aren't just competing against low wages, less regulation and taxe. We are also competing with robots.
Edit: Zander's first post

 

[TNHarley]

We have the second highest corporate tax rate in the world, and we charge it on worldwide earnings. It's why corporations are leaving and not repatriating their overseas earnings. It is why we are seeing massive waves of corporate inversions and it is why US companies are investing in foreign countries.

Lower the tax rate to 15% , and only tax US earnings - the problem is solved and hundreds of billions of $$ come home to be invested HERE.

We could just go with Bernies plan: end inversion by law, keep tax rates up and shit out new jobs

 

[eagle1462010]

Corporate Income Tax Rates around the World, 2014

Shows the worlds rates..............be happy 2 other countries have rates higher than us......................Yet the Dems say we don't tax them enough and can't figure out why they horde money overseas..............

Look at Ireland for example..........Why would they Invert there.............................12.5% versus 39.1% here...........so they keep the money over there........Pay lower taxes to Ireland for FOREIGN investments because the RATE is 3 TIMES LESS THERE...............

And people can't figure why the companies keep leaving...................