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So far he wanted to end tax credits for companies that ship jobs overseas, provide credits for companies that bring jobs back, reduce the mfg tax rate to 25%, and lower the top corporate tax rate to 28%.
None of these measures passed Congress though, so I don't know why he is still talking when he knows that anything he proposes isn't going to pass.
And all that effects multinationals.
That did nothing to help small/medium business that operate in the US.
The credits wouldn't compensate for bringing any job back.
PhD programmer in India makes $45K/year USD.
PhD programmer here commands $200K year USD (plus add US labor costs).
I don't have to ask, I did so because I had an ulterior motive (should have just skipped it and gotten to the point): What if you don't want to be a burger flipper manager and you can't afford education?
Most people understand that there are grants an/or loans for education.
Thanks, didn't a famous person say that? Sounds like a great quotable. One thing I've noticed is that I am rarely at a loss for ideas, but the execution is hard to get right. I can grasp things intellectually but am not good at appropriating them personally and making them work for me.
And if your corporation is overseas, then the foreign nation sets those rules, once again, the discussion is how does one subject themself to USA credits, not foreign ones
I already answered that. If you do not have US source income and have no ties to the USA you obviously won't owe US taxes, but you asked about US citizens and they are already subject to US taxes.
The taxation of foreign income earned by U.S. controlled foreign corporation drastically changed with the introduction of Subpart F into the Internal Revenue Code in 1962. Subpart F deals with the U.S. taxation of amounts earned by controlled foreign corporations (CFCs). It provides that certain types of income of CFCs, though undistributed, must be included in the gross income of the U.S. shareholder in the year the income is earned by the CFC.
U.S. Shareholder Defined. A U.S. shareholder is a U.S person (defined in IRC section 957(c)) who owns directly, indirectly, or constructively 10 percent or more of the total combined voting power of all classes of stock entitled to vote in a foreign corporation.
Controlled Foreign Corporation Defined. A controlled foreign corporation is any foreign corporation in which more than 50 percent of the total combined voting power of all classes of stock entitled to vote is owned directly, indirectly, or constructively by U.S. shareholders on any day during the taxable year of such foreign corporation or more than 50% of the total value of the stock is owned directly, indirectly or constructively by U.S. shareholders on any day during the taxable year of the corporation.
Quote:
Originally Posted by pghquest
If you are large enough to offshore jobs overseas, then anyone with 1/2 a brain knows that you establish a new corporation overseas and thus this removes any US tax liabilities..
Only if you stop doing business in the USA and only if we are not talking about a controlled foreign corporation. However, if you are not doing business in the USA, do not have US employees, and are not a CFC then your tax liability is ZERO - even if you manage the company from the USA. Special rules apply for this exemption.
Quote:
Originally Posted by pghquest
You get a credit for moving costs, regardless where you move your factory to, but anyone once again with 1/2 a brain knows that you wouldnt subject yourself to taxes, just to get a reduction when a business has the opportunity to just create a sub corporation overseas and thus avoid US taxes all together..
Once again, setting up a subsidiary doesn't alleviate your tax burden. A subsidiary makes it easier to engage in money laundering and if you are a multinational then you can use a subsidiary to defer taxes, but you asked about an individual. The multinationals can never bring the foreign money back, ever; not without paying US tax anyway.
Quote:
Originally Posted by pghquest
Democrats object to giving corporations tax cuts, but the tax credit you discussed is bogus and full of ****. Once again anyone with 1/2 a brain knows one wouldnt volunteer to pay taxes they arent subject to, just to get a deduction.
Please explain to me why we should have the highest corporate tax rate in the world and why we should help companies move jobs overseas.
And all that effects multinationals.
That did nothing to help small/medium business that operate in the US.
The credits wouldn't compensate for bringing any job back.
PhD programmer in India makes $45K/year USD.
PhD programmer here commands $200K year USD (plus add US labor costs).
Lowered tax rates doesn't help small/medium US companies? You can't be serious. If you borrow $1 million to start a company you can write off the interest, but you have to pay tax on the repayment of principal. 40% vs. 28%. Not a tough decision there.
Lowered tax rates doesn't help small/medium US companies? You can't be serious. If you borrow $1 million to start a company you can write off the interest, but you have to pay tax on the repayment of principal. 40% vs. 28%. Not a tough decision there.
Only if they are C Corps. Doesn't help them if they are LLC or S Corps.
Only if they are C Corps. Doesn't help them if they are LLC or S Corps.
People elect pass thru taxation to either:
A. pass losses onto their personal return, or
B. Because the individual tax rates are lower than the corporate rates.
Only if they are C Corps. Doesn't help them if they are LLC or S Corps.
HappyTexan, you are correct, it will not help the small/medium corps.
Lycos, I can understand your frustration with the large corporations, and you are correct for feeling that way. But, corporations have an army of lobbyists in Washington that will always see that their best interests are served no matter what party is in office. This is a consumer driven economy, and the power to correct this economy and grow low wage incomes and increase the middle class wealth is in the hands of the people. Consumers are lazy, and choose to shop and buy products from the big corporations, when they should be buying from local shops, or at minimum pay attention to who/where the product they are buying is made. Pay a few cents more for a product made by a small company in your area. I have never been able to find a source that knows who exactly made the following quote, but it really sums up our economic situation.
"I see in the near future a crisis approaching that unnerves me and causes me to tremble for the safety of my country. Corporations have been enthroned, an era of corruption in high places will follow, and the money-power of the country will endeavor to prolong it's reign by working upon the prejudices of the people until the wealth is aggregated in a few hands and the Republic is destroyed." - Author Unknown
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Not a tough decision there.
