Skip to main content

View Diary: Sen. Elizabeth Warren calls for end to corporate tax inversions (102 comments)

Comment Preferences

  •  A little more on the actual bill. (4+ / 0-)
    Recommended by:
    Sparhawk, FG, johnny wurster, nextstep

    This story contains some major points, plus an actual link.

    It all looks pretty reasonable.  The inversion threshold should probably be at 50%, 20% is way too small.

    This is a short-term fix to a long-term problem, though.  Many new corporations intentionally don't incorporate in the United States due to tax issues.

    For a long time, the US was able to avoid international tax competition, but globalization has given firms little reason to pay a premium to remain American.

    The US needs to adjust its corporate tax downwards (something Obama has offered to do if Republicans want to negotiate) with an eye towards eliminating it and replacing it with other revenue.  That and immediately eliminating the tax on the reparation of foreign income would both help our competitiveness and boost our actual tax revenues.

    •  Nonsense (13+ / 0-)

      We've given amnesties for repatriation of foreign profits before, and companies eagerly take advantage of them.  Once the amnesty is over they go right back to stashing cash in overseas tax havens.

      Corporations should pay tax, since they derive great benefit from the infrastructure and legal framework America affords them.  An international corporate tax framework needs to be worked out, but in practice it would be written by big corporations for their benefit, so we're probably better off without one in our current state of coruption.  There are a million corporate tax loopholes that should be closed, and would result in actual increased corporate tax liability.

      I stand with triv33. Shame on her attackers.

      by Dallasdoc on Thu Jul 31, 2014 at 08:43:03 AM PDT

      [ Parent ]

      •  This argument is all over the place. (1+ / 0-)
        Recommended by:
        johnny wurster
        We've given amnesties for repatriation of foreign profits before, and companies eagerly take advantage of them.  Once the amnesty is over they go right back to stashing cash in overseas tax havens.
        Of course they went right back to "stashing" cash overseas, because that's what the tax encourages them to do.  Tax holidays don't accomplish anything besides a temporary boost in revenues.
        Corporations should pay tax, since they derive great benefit from the infrastructure and legal framework America affords them.
        The point is, they actually don't.  If they did, we wouldn't have to convince them not to incorporate/move elsewhere.  Many corporations (including the one I work for) do almost no business in the United States itself anymore. They get taxed simply for being an American company moving money back into the US.  Few of our contracts with clients even specify the USA as the choice of law.
        An international corporate tax framework needs to be worked out,
        Then they're be paying for what?  Certainly not the " infrastructure and legal framework America affords them."  5% of the infrastructure and legal framework Uganda affords them?
        •  Then go. (8+ / 0-)

          And Cthulhu bless.  The rest of us will be better off without you.  If you're neither providing jobs nor services nor paying taxes, why the fuck would we care if you leave?

          •  Well the issue is... (0+ / 0-)
            If you're neither providing jobs nor services nor paying taxes, why the fuck would we care if you leave?
            We're still paying (large) amounts of tax, both for the "privilege" of being a US firm and because many of our employees are in the US.

            The company is still in the US because it's employee-owned.  I imagine, once enough of the employees live outside the US, the company will leave as well, just like our major affiliate (Irish, left the US a decade ago) and most our competitors.

            •  Right, (2+ / 0-)
              Recommended by:
              elwior, ichibon

              but if as you suggest we abolish corporate taxes why the fuck would we want your company to stay?

              You honestly seem to be suggesting that the US should offer you a cash bribe to stay here, even though you admit that the decision as to staying or leaving will be made on the basis of where your employees happen to live.  

              Look at all the factories that shut down in spite of receiving free land and huge tax subsidies.  You've already admitted that tax subsidies will not induce your company to stay.  Why then should somebody else give you a free ride until your inevitable departure?

        •  So a company like Apple isn't benefitting from (4+ / 0-)
          Recommended by:
          bethann, elwior, nosleep4u, ichibon

          laws and protections in America?  Granted the trade agreements give them many of the same protections no matter where they are, but there are other benefits including a large amount of their customer base being here, using infrastructure that Americans built.

          If Apple wants to move everything including their stores and datacenters for iTunes offshore, then they can claim to not owe taxes - even then I'd say their American sales amounts should still be subject to taxes the same as any fully American incorporated company would face.  I don't care if their sales in Germany, for example, were taxed by Germany but to skip out on taxes from the US because you've inverted your company to claim Ireland as the corporate home is tax evasion and should be subject to civil and criminal penalties.  Sadly, the laws are probably set up by the business-owned legislators so it's all probably legit, but that doesn't mean it can't be changed to be fairer.

          •  Companies already pay taxes where they operate (0+ / 0-)
            If Apple wants to move everything including their stores and datacenters for iTunes offshore, then they can claim to not owe taxes - even then I'd say their American sales amounts should still be subject to taxes the same as any fully American incorporated company would face.
            Any company with American stores pays American property taxes, and company with workers in the USA pays payroll taxes on their employees there. Inversion doesn't change that part of the tax burden at all.

             

            I don't care if their sales in Germany, for example, were taxed by Germany; but to skip out on taxes from the US because you've inverted your company to claim Ireland as the corporate home is tax evasion and should be subject to civil and criminal penalties.
            (I added a semicolon to try and make this sentence work, I assume that's what you meant.)

            You're arguing to changing the law the outlaw inversions but eliminate the repatriation tax of foreign (already taxed locally) income?

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site