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Good watch there, basically every single fortune 500 company shifts their income offshore to various tax havens. In a global economy a 35% tax rate simply cant compete against a 0% tax haven. With business, your business can be located anywhere in the world more or less (for tax purposes). If you don't like 35% business tax in USA, simple, you move off shore to Bermuda, caymans dubai etc. So easy to do in todays economy.
It is corporate welfare because for individuals no matter where you earn your money you have to pay US income tax, why isn't it the same for US corporations? US companies must pay the 35% rate no matter where they move the money.
It is corporate welfare because for individuals no matter where you earn your money you have to pay US income tax
Nope.
You have to file a tax return but there is an exclusion (I think about $90K right now) on foreign earned income, so most people working overseas don't have to pay income tax.
It is corporate welfare because for individuals no matter where you earn your money you have to pay US income tax, why isn't it the same for US corporations? US companies must pay the 35% rate no matter where they move the money.
Well if we did force companies to pay 35% tax then they would just relocate out of the united states entirely.
and you can get out of us income taxes, you just have to renounce your us citizenship, which can be very difficult to do especially if you have money.
You have to file a tax return but there is an exclusion (I think about $90K right now) on foreign earned income, so most people working overseas don't have to pay income tax.
Only if you qualify to a rigorous "residency requirement". I lived overseas for over 7 months and still did not qualify for the exclusion. Also, keep in mind any income over $90K is still taxed in the U.S. although they do take into consideration foreign taxes.
It seems that corporations are not paying their fair share and these loopholes need to be cut off.
It's not even that simple. I;m a american who works for a foreign company. I live in the US and work from a US location for foreign flights but we are considered foreign employees because we are paid in another country under their currency and my work address is overseas. I must file US taxes each year. What i pay in US taxes depends on many things including taxes paid on wages to another country. It also depends on the contract being american or foreign controlled. I have to us an accountant to figure out what taxes I owe and to whom. Our company bought several small US operations over the last 20 years and shifted all operations to overseas based.
Just like a employee of a foreign company who comes to the US to assist with some operation change or instruction, they don't pay us taxes on the money they made when here. Just like if your company sends you overseas for a few days to teach something to vendors over there, you don't pay taxes on those days to that country.
But on a big scale, a US company actaully are given incentives to move jobs overseas. What a company gets and what you get are not the same and the company really doen't care. If they move your job overseas and make you hire as a foreign worker in that country, if taxres are low, why not do it. What you the individual taxpayer ends up having to do as a US citiizen is not a concern of the company. So long as they can make money shifting work overseas, why not.
It's not even that simple. I;m a american who works for a foreign company. I live in the US and work from a US location for foreign flights but we are considered foreign employees because we are paid in another country under their currency and my work address is overseas. I must file US taxes each year. What i pay in US taxes depends on many things including taxes paid on wages to another country. It also depends on the contract being american or foreign controlled. I have to us an accountant to figure out what taxes I owe and to whom. Our company bought several small US operations over the last 20 years and shifted all operations to overseas based.
Just like a employee of a foreign company who comes to the US to assist with some operation change or instruction, they don't pay us taxes on the money they made when here. Just like if your company sends you overseas for a few days to teach something to vendors over there, you don't pay taxes on those days to that country.
But on a big scale, a US company actaully are given incentives to move jobs overseas. What a company gets and what you get are not the same and the company really doen't care. If they move your job overseas and make you hire as a foreign worker in that country, if taxres are low, why not do it. What you the individual taxpayer ends up having to do as a US citiizen is not a concern of the company. So long as they can make money shifting work overseas, why not.
Very true which is why the US has to have a competitive business climate. I am sorry, but 35% is probably bottom of the barrel. Ireland has 12.5% and other countries like dubai have 0% tax. If we tax businesses then they say, "hey, nice doing business with you, we are going to dubai now. Bye bye." Its better to have 0% taxes, have those businesses in the USA where they hire domestic workers. There is a reason unemployment is at a sustained 10%.
It is corporate welfare because for individuals no matter where you earn your money you have to pay US income tax, why isn't it the same for US corporations? US companies must pay the 35% rate no matter where they move the money.
Ultimately, all corporate taxes paid are passed on to the citizens. To think otherwise is delusional.
One word -- Tariffs -- would end all this nonsense.
Tariffs are specifically called out to be applied under the US Constitution.
Worked for 200 years of US history, still works for China and most of the rest prosperous parts of the world.
This is not rocket science and the top end bankers and transnationals understand exactly what they are doing. We are being sold out and undermined by the top end for a quick buck.
I'm not in favor of tariffs. I'm in favor of applying the concept that, if a corporation doesn't pay taxes here, it doesn't have constitutional rights here, like free speech. Why should a corporation who chooses to do these things be able to exercise its free speech "rights" with election and lobbying contributions?
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