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Where's the evidence that companies are reinvesting the money overseas?
Not who you were talking to, but read my previous post. Apple is choosing to borrow $$$ despite having a massive fortune over seas. Why bring that money into the US to get heavily taxed?
43% of the S&P 500 business is from overseas...much of this money isn't coming into the country.
If a corporation's profits are because of it foreign explots, and we [the American people] shovel billions in taxpayer's money to prop up these nation's economies, then would'nt the natural progression be that we tax some of those overseas profits to put some of our money back into the foreign aid coffers?
If a corporation's profits are because of it foreign explots, and we [the American people] shovel billions in taxpayer's money to prop up these nation's economies, then would'nt the natural progression be that we tax some of those overseas profits to put some of our money back into the foreign aid coffers?
We do.. The reunification tax rate in the USA is the highest in the world, at 36%. Thats why corporations create new corporations overseas, and dont return the money back to the states.
If a corporation's profits are because of it foreign explots, and we [the American people] shovel billions in taxpayer's money to prop up these nation's economies, then would'nt the natural progression be that we tax some of those overseas profits to put some of our money back into the foreign aid coffers?
These companies tend to pay taxes and get tax breaks in the foreign countries too.
What about allowing companies to bring their foreign profits home during a one time holiday of a flat 15% rate? It could raise tens of billions of dollars in immediate taxes and perhaps give a shot of juice to the economy.
Where's the evidence that companies are reinvesting the money overseas?
"Microsoft has saved nearly $7 billion off its U.S. tax bill since 2009 by using loopholes to shift profits offshore, a Senate panel said in a report released in September of 2012.
The Senate investigation, which included subpoenas and voluntary correspondence with the companies, provided an in-depth look into how the companies set up and use overseas tax shelters, as well as the impact on government coffers.
In the case of Hewlett-Packard, the investigation found the computer maker whittles down its cash kept in the United States by tapping a series of loans made from subsidiaries in Belgium and the Cayman Islands.
For example, in 2009, Hewlett-Packard held $12.5 billion in foreign cash, but only $800 million in the United States. It only pays taxes on the U.S. portion, while tapping a series of ongoing "short-term" loans that, taken together, stretched for 30 straight months, according to the panel."
I believe most large corporations exploit legal loopholes to shelter billions of dollars in profit in tax havens like Bermuda and the Cayman Islands. There is one small building in the Cayman Islands that houses ~18,000 corporations, primarily in the form of post office boxes, which are used as the corporate addresses for profits.
These companies tend to pay taxes and get tax breaks in the foreign countries too.
What about allowing companies to bring their foreign profits home during a one time holiday of a flat 15% rate? It could raise tens of billions of dollars in immediate taxes and perhaps give a shot of juice to the economy.
Bush did this for one year. The tax rate was 5.25 %. Microsoft alone brought back something like $32 billion (which shows how much they are sheltering.) But it's a one-time fix, not a solution.
We do.. The reunification tax rate in the USA is the highest in the world, at 36%. Thats why corporations create new corporations overseas, and dont return the money back to the states.
But in reality, corporations in the U.S. pay an average rate of around 19.9 %, and many large corporations like Exxon and GE pay zero federal taxes because of loopholes.
But in reality, corporations in the U.S. pay an average rate of around 19.9 %, and many large corporations like Exxon and GE pay zero federal taxes because of loopholes.
GE? Really? GE paid 29% in 2010, has that changed?
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