Obama pushes to stop corporate overseas tax moves

#21

Sorry, but, no. Once a company takes possession of your cash, it becomes their cash. Customers don’t give cash to companies out of the goodness of their heart. They received something in exchange for that cash.

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#22

Excellent move by the administration

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#23

Because if they have higher taxes than their competitors it hurts their ability to compete

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#24

Government’s view of the economy could be summed up in a few short phrases: If it moves, tax it. If it keeps moving, regulate it. And if it stops moving, subsidize it.
Ronald Reagan

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#25

So they actually do pay the tax.

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#26

Yes. I don’t recall saying they didn’t.

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#27

No they aren’t. We have a fairly low business tax rate after all the loopholes, but offshore accounts are tax-FREE. Free will always outbeat any tax rate, no matter how fair, in a hypercapitalistic economy such as ours that encourages immorality.

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#28

Note, only the businesses which have incentives directed at them can take advantage of them. These incentives were passed by our representatives to promote specific economic activity on the justification that it benefited the public at large. They aren’t ‘loopholes’.

So, businesses which haven’t been provided incentives still pay the higher rates.

As for off shore acounts being free. No. Business activity conducted overseas independent of the US and not providing profits back into a US based corporation aren’t taxed by the US. But a US corporation doing businesses overseas returning profits to the US parent company are taxed. So, a corporation which does a lot of business overseas has to look at whether it makes sense to still base themselves in the US and be subjected to taxes on business activity taking place outside the US.

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#29

And what loopholes are those? I have some clients who could really use them. If you are referring to tax credits provided for boondoggles such as renewable energy (Solyndra for example) be aware that these targeted credits are not available to the overwhelming majority of Corporations

Offshore accounts are NOT tax free. In fact if you have an offshore account with a balance of $10,000 or more you are required to file a ***Report of Foreign Bank and Financial Accounts(FBAR) ***by June 30 of each year. Failure to file can lead to penalties of up to 50% of the balance.

If a US Company earns money overseas it is taxable when it is “repatriated” to the US.

Again if we have such low rates why would a company want to relocate?

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#30

Isnt there a little bit of patriotism supposed to be factored in with being an american company too? I see many tv commercials from large corporate giants, they show american flags waving against a bright blue sky, workers going to work, taking pride in what they are doing, spending the money they make on homes, cars, products, etc. Kind of funny to see commercials that show them to be patriotic, yet at the same time, they fight tooth and nail to pay the lowest amount possible when it comes to tax time…seems like they like to wave their patriotic flag, but dont want any of the responsibilities that go along with this, and even threaten to leave the country if their needs arent met…I say, let them leave, dont let the door hit you on the way out, oh, yea, and if you plan to stay in the US, and continue to try and dodge as many taxes as possible, maybe when they need civil services, such as when their computers are hacked and all their customers credit card numbers are stolen, maybe they should not rely on the police, or when a fire breaks out at a building, if they arent going to pay their share, dont bother calling for fire dept.

Point is, they want the best of everything, they want to claim all the good things about the US, but dont want any of the responsibilities, I believe the founding fathers had a name for people/corporate entities like this! LOL

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#31

And? That cash received is going somewhere, going to someone. It is either going to employees, vendors, or owners. So when there is a tax increase, either prices rise (customer pays the tax), wages are lowered or stagnate (employee pays the tax), inventory/supplies prices are lowered (vendor pays the tax), or profits are reduced (owners pay the tax). Or some combination thereof.

Do you understand now?

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#32

Because higher taxes harm one of their four major groups they are concerned about, who keep the business running. And because high taxes can cause an unfair advantage for competitors.

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#33

Quoting inane talking points tells me you don’t know what you’re talking about.

Those offshore accounts are profits they earned from doing business overseas, in other countries. Unlike every other country in the world, the US wants to tax them on those profits earned outside the US. Every country in the world does not do this.

If those companies bring that money to the US, they can then pay out the money as dividends, or use it for serious capital investment to expand their US operations. But instead, the US wants to tax them 35% on money that HAS ALREADY BEEN TAXED by another govt. And in addition, the US wants to tax that money ANOTHER TIME on any dividends paid out, up to almost 40%.

Do you now understand just a little why they are severely reluctant to repatriate these monies? Would you bring that money home when you would lose 50-70% of it?

If instead, there was no taxes on bringing that money back, the companies would quickly do so because their owners would like to take the dividends, and also they have capital investments that would make them more money.

Answer this question for me, if you would: What is the maximum amount someone should be taxed?

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#34

The founding fathers were the ones protesting and fighting against onerous taxes. What history books did you read?

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#35

So, who is Reagan to me? Certainly not an authority on the role of Government or possessing any profound insight about a social society.

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#36

It is the patriotic duty of each individual American to cheat the government out of every possible penny they claim even if you have to destroy your computer hard drive. Sic semper tyrranis and all that. :thumbsup:

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#37

How is this different than taking your business elsewhere when prices get to onerous at a store for you? The playing field for corporations may be different than that if inidivudals, but the concepts and rules still apply.

Why is it good business sense for you to save money by choosing where to take your business, but “greed” when corporations do it?

it seems to me either you are both greedy, or both making smart decisions.

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#38

I understand that you’re wrong. Customers do not pay company income taxes any more than my boss pays my rent. Money is exchanged for goods/services. Taxes are figured into the cost of goods, just like labor and overhead. It is the company’s money that is going for the taxes, no one elses.

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#39

You just made my point, thank you.

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#40

Actually, this is not always true. Some companies set up their businesses so that some of the profits from US sales gets diverted to offshore entities which are not taxed. For example, Apple computer sells its intellectual property rights to a subsidiary in a tax haven for a cheap price. Then when they sell an iphone, part of the price is paid as a royalty fee to that subsidiary and escapes taxation in the US. The iphone may have been designed here, but the intellectual property rights end up in a place that had nothing to do with producing it. That is how Apple has $50 billion offshore, much of it from US sales. Should this sort of behavior be legal? That is a very reasonable question.

fortune.com/2012/04/29/apples-tax-strategies-double-irish-with-a-dutch-sandwich/

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