What should be done, if anything, to bring home $5 trillion held overseas by American businesses?

[danielpalos]

And that idea, the idea that the left own /all/ money on the planet is why businesses won't invest in America. Leave it as it is with these folks being taxed 25-40% to bring it into the US then and you'll not see a fucking penny cause the money will stay in the country where it was made (or be moved to countries that would rather have the longer term investment in their economy than the short term tax pittance.)

stop blaming the poor for being better at avoiding taxes without playing any "shellgames" with statism.

 

[EverCurious]

I'm all for getting rid of child tax credits as well as certain business tax credits.

How about we address the real problem instead of the symptoms though? Lets stop spending so god damned much.

 

[danielpalos]

I'm all for getting rid of child tax credits as well as certain business tax credits.

How about we address the real problem instead of the symptoms though? Lets stop spending so god damned much.

We have a general welfare clause and a common defense clause. where do we, "cut the waste"?

 

[Markle]

You rightards are simply fucking nuts. There is no other explanation. No matter how many times this is explained, y'all still can't grasp it.

Foreign Tax Credit

If you paid or accrued foreign taxes to a foreign country or U.S. possession and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes.

Which is exactly what I demonstrated in my example. Why is that impossible for you to comprehend?

Here is my simplified example. Specifically how is this different from what you say?

So the company in Faunland pays Faunland's 20% corporate tax rate on their $100.00 of net profit leaving $80.00. They bring that $80.00 into the U.S. and pay a 38.9% corporate tax rate for the privilege of bringing that $80.00 into the states. That's an additional $31.12 in taxes. Eighty dollars minus $31.12 leaves them with $48.88 net profit after the money comes in the states?

Why would they do such a thing?

 

[Markle]

I have seen no evidence that is so.

Then you need to look into the taxes paid in New York City, New York State and many large metropolitan areas in California.

 

[Boss]

You rightards are simply fucking nuts. There is no other explanation. No matter how many times this is explained, y'all still can't grasp it.

Foreign Tax Credit

If you paid or accrued foreign taxes to a foreign country or U.S. possession and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes.

Which is exactly what I demonstrated in my example. Why is that impossible for you to comprehend?

Here is my simplified example. Specifically how is this different from what you say?

So the company in Faunland pays Faunland's 20% corporate tax rate on their $100.00 of net profit leaving $80.00. They bring that $80.00 into the U.S. and pay a 38.9% corporate tax rate for the privilege of bringing that $80.00 into the states. That's an additional $31.12 in taxes. Eighty dollars minus $31.12 leaves them with $48.88 net profit after the money comes in the states?

Why would they do such a thing?

Especially when Faunland can keep the $100 where it is, gain $2~3 interest and have a capital asset of $102~3 of which a capital investment loan can be obtained. Faunland then takes the money and turns a profit of $50 after taxes an still has his wealth. Have your cake and eat it too! This is how wealthy people maintain wealth.

 

[Markle]

No,

Keep the tax system the way it is and raise tariffs on any manufacturing outside this country...Make it uneconomic to bring it back in hence forcing the businesses to stay in the country.

Keep the science, infrastructure and common sense investment flowing.

What would other countries do to our products we export to other countries. What then is accomplished?

What are opposed to in the Fair Tax?

How FAIRtax Works | FAIRtax.org

Pass the FAIRtax | FAIRtax.org

 

[Staidhup]

This is all mute considering America has either the highest or second highest corporate tax rate in the world. Face it until such time corporate tax rates are equal to the developed worlds then the issue will remain talk talk talk.

As for repatriating foreign earnings into meaningful US jobs, the only logical approach is to levy a tax based on the difference between what was paid and the current US corporate rate.

As is at 39% federal and between 6-9% state why the fu-k would someone want to pay between 45-48%? On the other hand if the US corporate rate was reduced to 16%, state taxes remained between 6-9%, the net result would be between 22-25%, resulting in an incentive to reinvest in the US. The key is how confident are business executives that the anti business nut jobs wouldn't just go ahead and revert to their old habits of demonizing business and jack up the rates when they had a chance?

We currently suffer as a result of the nut jobs we elect and I for one do not see this changing anytime soon. My fear is that these same nut jobs and their sanctuary cities and states will foster greater immigration, flooding the job market, applying downward pressure on wages, overburdening local and federal services, and doing nothing to enhance employment opportunities.

 

[Faun]

You rightards are simply fucking nuts. There is no other explanation. No matter how many times this is explained, y'all still can't grasp it.

Foreign Tax Credit

If you paid or accrued foreign taxes to a foreign country or U.S. possession and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes.

Which is exactly what I demonstrated in my example. Why is that impossible for you to comprehend?

Here is my simplified example. Specifically how is this different from what you say?

So the company in Faunland pays Faunland's 20% corporate tax rate on their $100.00 of net profit leaving $80.00. They bring that $80.00 into the U.S. and pay a 38.9% corporate tax rate for the privilege of bringing that $80.00 into the states. That's an additional $31.12 in taxes. Eighty dollars minus $31.12 leaves them with $48.88 net profit after the money comes in the states?

Why would they do such a thing?

Dayam, you are one dumb mofo.

They wouldn't have to do such a thing because that's not how the foreign tax credit works. What you described is indeed a double tax ... the foreign tax credit eliminates that.

Here's how it actually works using your figures and assuming the income qualifies for the foreign tax credit.....

Corporation A is in the U.S. and makes $100 net profit

Corporation B is outside the U.S. and makes the same

Corporation A pays $38.90 in tax which leaves them with a net profit of $61.10 after taxes.

Corporation B pays $20 in foreign taxes and then files a federal tax return in the U.S. on that money. They are taxed at 38.9% on the full $100.00 net profit. That's $38.90 in tax. But because of the foreign tax credit, they can put the $20.00 they paid in foreign tax on their return as an itemized deduction, subtracted from the $38.90 they would owe, they now owe $18.90 to the IRS. Like company A, they end up with a net profit of $61.10 after taxes.

Their total tax burden comes out to the same as corporation A of $38.90. $20.00 in foreign tax plus $18.90 in federal tax. There is no double tax.

Now granted, not everyone qualifies; and for those who do, the calculations can get trickier depending on their circumstances; and the tax payer can choose between taking it as a deduction versus taking it as a credit.

 

[Faun]

You rightards are simply fucking nuts. There is no other explanation. No matter how many times this is explained, y'all still can't grasp it.

Foreign Tax Credit

If you paid or accrued foreign taxes to a foreign country or U.S. possession and are subject to U.S. tax on the same income, you may be able to take either a credit or an itemized deduction for those taxes.

Which is exactly what I demonstrated in my example. Why is that impossible for you to comprehend?

Here is my simplified example. Specifically how is this different from what you say?

So the company in Faunland pays Faunland's 20% corporate tax rate on their $100.00 of net profit leaving $80.00. They bring that $80.00 into the U.S. and pay a 38.9% corporate tax rate for the privilege of bringing that $80.00 into the states. That's an additional $31.12 in taxes. Eighty dollars minus $31.12 leaves them with $48.88 net profit after the money comes in the states?

Why would they do such a thing?

Especially when Faunland can keep the $100 where it is, gain $2~3 interest and have a capital asset of $102~3 of which a capital investment loan can be obtained. Faunland then takes the money and turns a profit of $50 after taxes an still has his wealth. Have your cake and eat it too! This is how wealthy people maintain wealth.

That's how they maintain their wealth offshore. If they want to bring their money home, they get taxed at the same rate as everyone else [in their bracket].

No one gets special treatment merely because they have a shitload of money overseas. WTF is wrong with you people?

 

[Faun]

As for repatriating foreign earnings into meaningful US jobs, the only logical approach is to levy a tax based on the difference between what was paid and the current US corporate rate.

That's what the foreign tax credit does.

 

[Synthaholic]

It would be nice to have some of that money come back home.

Why?

Is it your opinion that the money they would bring back would be yours or belong to the collective?

The tax on it is.

 

[Synthaholic]

It would be nice to have some of that money come back home.

/---- waive the taxes. What's so complicated about that?

Why would the citizens want to do that?

 

[Synthaholic]

/---- They already paid taxes in the foreign countries. Bring it it back to the US would cost them an additional tax - that's double taxation.

It's only double taxation if both are done by the same government. Dumbass.

 

[Synthaholic]

But then again you don't give a rat's ass who you hurt.

Oh, you poor snowflake! You're such a victim!

Grow a set, Corky.

 

[WinterBorn]

It would be nice to have some of that money come back home.

If someone earns their money legally, they can do with it what they will. Unless you pass laws saying that American citizens can only spend their money in the US, there is nothing to be done.

 

[WinterBorn]

Make all earnings taxable. Overseas and here at home. Earnings held overseas taxed at a much higher rate.

So people who earn money outside the US, and leave the money outside the US should be taxed IN the US? WTF? That amounts to theft.

 

[WinterBorn]

Round up the unpatriotic scum who run these companies, line them up against the wall, and shoot them all.

Tell the next bunch who take over that this is what's in store if you fuck up again and try to weasel out of paying your fair share to the country that allows you to operate unhindered.

Change the tax codes or whatever. But murdering business people because they do something that is not against the law? Sorry, that won't work. People will start shooting back and they have more ammo.

 

[pwjohn]

Make all earnings taxable. Overseas and here at home. Earnings held overseas taxed at a much higher rate.

So people who earn money outside the US, and leave the money outside the US should be taxed IN the US? WTF? That amounts to theft.

Don't be stupid! This thread has nothing to do with individual earnings. Read the thread title!

 

[WinterBorn]

Make all earnings taxable. Overseas and here at home. Earnings held overseas taxed at a much higher rate.

So people who earn money outside the US, and leave the money outside the US should be taxed IN the US? WTF? That amounts to theft.

Don't be stupid! This thread has nothing to do with individual earnings. Read the thread title!

So companies who earn money outside the US, pay taxes in other countries, and leave the money outside the US should be taxed IN the US? WTF? That amounts to theft

Better?