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View Diary: Eliminate corporate tax, seriously (422 comments)

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  •  What if you just eliminated the tax... (2+ / 0-)
    Recommended by:
    VClib, OCLefty

    ...on foreign profits?

    Wouldn't that bring the money home too?

    •  BB - yes, that's how the rest of the G20 handles (4+ / 0-)

      it. Non domestic earnings can be repatriated without any additional domestic income tax due. The US is an anomaly on this point.

      "let's talk about that" uid 92953

      by VClib on Mon Aug 25, 2014 at 01:17:03 PM PDT

      [ Parent ]

      •  I think overall revenue to the US Treasury would (0+ / 0-)

        go down in that scenario.

        For every dollar that isn't repatriated, there's more than one dollar that is taxed, even though the money stays overseas.  I don't know the exact ratio, but multinational companies do pay taxes on overseas profits in excess of what is currently not taxed.

        The un-repatriated profits will be taxed when brought back - but multinationals can structure their cash flow to build in substantial delays on when the taxes are paid.

        "If one cannot enjoy reading a book over and over again, there is no use in reading it at all." — Oscar Wilde

        by chicagobama on Mon Aug 25, 2014 at 02:17:03 PM PDT

        [ Parent ]

        •  Substantial delays as in never (2+ / 0-)
          Recommended by:
          johnny wurster, goodpractice

          Multinationals will not repatriate the overseas cash at 35%. It makes no sense when that cash can be re-invested anywhere in the world, except the US.

          "let's talk about that" uid 92953

          by VClib on Mon Aug 25, 2014 at 04:02:05 PM PDT

          [ Parent ]

          •  So why give them the choice? (0+ / 0-)
            Multinationals will not repatriate the overseas cash at 35%.
            Corporations are chartered by governments.  Governments hold all the trump cards.

            Corporations will do whatever they are told to do.  There is no reason to allow any delay in repatriation.  Simply state that all corporate income must be repatriated by the end of the reporting period in which it is earned.

            -7.75 -4.67

            "Freedom's just another word for nothing left to lose."

            There are no Christians in foxholes.

            by Odysseus on Mon Aug 25, 2014 at 06:27:15 PM PDT

            [ Parent ]

            •  Congress could certainly change the code (1+ / 0-)
              Recommended by:
              Odysseus

              as you suggest, but there is no support for such a change. Incorporating in the US is already a competitive disadvantage for a multinational.

              While most startups that are seeking professional investors are still incorporated in Delaware I am seeing the start of incorporating startups outside the US, right from the initiation of the company. The message to me is that we don't have competitive tax laws or tax rates for corporations. That's why I like Kos' idea.

              "let's talk about that" uid 92953

              by VClib on Mon Aug 25, 2014 at 07:21:28 PM PDT

              [ Parent ]

          •  Not always never (0+ / 0-)

            I work with a lot of Fortune 1000 companies, and some of them need the overseas cash to fund operations in the US.

            It's easy to see why a company like Apple, which is hugely profitable, would permanently keep the cash out of the US, although it is taxed by the foreign country.  But there are a lot of companies that are struggling to break even and they don't have the same flexibility.

            "If one cannot enjoy reading a book over and over again, there is no use in reading it at all." — Oscar Wilde

            by chicagobama on Tue Aug 26, 2014 at 06:34:55 AM PDT

            [ Parent ]

      •  That's part of US exceptionalism, we tax money ... (0+ / 0-)

        earned everywhere.

      •  Simple statements are so hard to understand. (0+ / 0-)

        The US claims that it can tax income.  Period.  That's not outdated and it's not obviously logically wrong.  That it's different than how others choose to do it is irrelevant.

        United States Income Tax Treaties - A to Z

        If the treaty does not cover a particular kind of income, or if there is no treaty between your country and the United States, you must pay tax on the income in the same way and at the same rates shown in the instructions for the applicable U.S. tax return.

        -7.75 -4.67

        "Freedom's just another word for nothing left to lose."

        There are no Christians in foxholes.

        by Odysseus on Mon Aug 25, 2014 at 06:25:40 PM PDT

        [ Parent ]

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