Treasury Dept. takes more action to deter inversions cnb.cx/1PQKEEe
Here is a little more detail on what they are doing.
That’s okay. When the Fed sets the interest rates to less than 0, we’ll all, including the Treasury, be able to borrow tons of money without having to pay it all back. Politicians then could promise all the tax cuts they want.
You know the Soviet Union had to put up walls and fences to keep those pesky east European populations home. Looks like the US Treasury is doing the same thing.
The difference is that many american corporations use gimmicks and loopholes to avoid paying taxes. Whether this should be discouraged is a reasonable policy debate to have.
Corporations and people don’t go through expensive and costly accounting & legal structures when tax rates are reasonable. Labeling them “gimmicks and loopholes” is trying to give the impression that they are using illegal means to taxation.
Perhaps it would just be easier to lower tax rates to a sane level and you don’t have to worry about all these actions.
That said, this sounds like the Obama admin is trying to set the narrative for the Panama Papers, which seems to be a Who’s Who of leftist leaders and dictators around the world, who have been siphoning money away. They want to portray it as corporations who are doing this activity, when it is really leftist dictators and leaders around the world.
Private corporations have a fiduciary duty to their shareholders to use all legal means at their disposal to minimize their tax burden.
I never suggested otherwise. The question is, should policy encourage it?
And the countries where these private corporations do business can regulate them any way they see fit. If they don’t like it they don’t have to do business here (or anywhere for all I care).
Your statement sounds fairly antagonistic to free enterprise and markets.
The policy that encourages it is one of the highest corporate tax rates in the world. I would be all in favor of repealing that policy.
I am in favor of corporate tax reform as well.
It is a bit antagonistic but in general, regulation does not equal antagonism.