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The government is unlikely to interfere in 401K funds because the giant financial firms don't want them to. The stock markets rely on increasing the amount of money in the system to generate profits these days, even more so than dividends form companies listed on the exchange. And this is an area where what Big Finance wants- incentives for even the 'little guy' to invest their retirement funs in the markets- Big Finance gets.
Especially since the President-elect is a guy from Delaware of all places. You know Delaware? State best known for being a tax haven for all kinds of financial services companies registered there. The hard core lefties often have a good amount of suspicion of Biden because they feel like you don't get a high political office in Delaware, such that it is, without playing nice with the Big Finance industries who are technically registered as headquartered in the state.
The government is unlikely to interfere in 401K funds because the giant financial firms don't want them to. The stock markets rely on increasing the amount of money in the system to generate profits these days, even more so than dividends form companies listed on the exchange. And this is an area where what Big Finance wants- incentives for even the 'little guy' to invest their retirement funs in the markets- Big Finance gets.
Especially since the President-elect is a guy from Delaware of all places. You know Delaware? State best known for being a tax haven for all kinds of financial services companies registered there. The hard core lefties often have a good amount of suspicion of Biden because they feel like you don't get a high political office in Delaware, such that it is, without playing nice with the Big Finance industries who are technically registered as headquartered in the state.
A company sets up a subsidiary in Delaware, and transfers an intangible part of its business there—say, its trademark or naming rights.
Then its other locations outside of Delaware pay money to the subsidiary in order to use that trademark.
Since intangible assets are not taxed in Delaware, the company doesn’t have to pay taxes on the money that was transferred to the subsidiary.
The company can deduct the cost of the royalties on its state returns in other states where it operates, and thus avoid a large share of the state income taxes it would have otherwise owed. It is the laws of states other than Delaware that allow this system to work.
A little over 2/3rds (67.8%) of fortune 500 companies and more than 50% of all firms (over 1.5M other LLCs/Corporations/etc.) in the US are incorporated in Delaware, including nearly 90% of IPOs.
Delaware is very business friendly for taxes. The state does not have a corporate tax on interest or other investment income that a company earns (good for financial firms especially). Additionally, there is no state corporate income tax on Delaware corporations. They also have low cost of fees for continued incorporation. Delaware also has a separate court system called the Court of Chancery that is used only to adjudicate corporate litigation.
BTW - There is only 1 fortune 500 company actually headquartered in Delaware (Chemours) that was a spinoff of DuPont founded in 2015.
go ahead forgive trillions without congress... this will just be the first of many demands the far left demands from "their president".
Folks they will be coming after your assets to fund their SJW festivities it's only a matter of time.
so give them all away and have nothing if you feel that way .
many with the glass is always half empty and the world is ending views failed financially or did poorly from just believing their own bull so they dont have much to give away or be taken anyway
A little over 2/3rds (67.8%) of fortune 500 companies and more than 50% of all firms (over 1.5M other LLCs/Corporations/etc.) in the US are incorporated in Delaware, including nearly 90% of IPOs.
Delaware is very business friendly for taxes. The state does not have a corporate tax on interest or other investment income that a company earns (good for financial firms especially). Additionally, there is no state corporate income tax on Delaware corporations. They also have low cost of fees for continued incorporation. Delaware also has a separate court system called the Court of Chancery that is used only to adjudicate corporate litigation.
BTW - There is only 1 fortune 500 company actually headquartered in Delaware (Chemours) that was a spinoff of DuPont founded in 2015.
The exemption for interest or other intangible property income is only for Intangible Holding Companies. Those whose business is limited to the maintenance and management of intangible property. It does not apply to active financing businesses, like banks.
Delaware does have a corporate income tax whether incorporated in DE or anywhere else. Delaware also has a personal income tax. Delaware does not have a sales tax, however it does have a gross receipts tax that acts similar to a sales tax but is imposed on the seller, not the buyer.
The annual franchise tax for incorporating in DE for the large corporations is $250k, I wouldn't exactly consider that low cost. Chancery court is what makes it worth it. There is a large body of law associated with corporate actions and shareholder/director/corporate management roles and responsibilities that can be used when making decisions to understand what the outcome is likely to be if challenged.
The exemption for interest or other intangible property income is only for Intangible Holding Companies. Those whose business is limited to the maintenance and management of intangible property. It does not apply to active financing businesses, like banks.
Delaware does have a corporate income tax whether incorporated in DE or anywhere else. Delaware also has a personal income tax. Delaware does not have a sales tax, however it does have a gross receipts tax that acts similar to a sales tax but is imposed on the seller, not the buyer.
The annual franchise tax for incorporating in DE for the large corporations is $250k, I wouldn't exactly consider that low cost. Chancery court is what makes it worth it. There is a large body of law associated with corporate actions and shareholder/director/corporate management roles and responsibilities that can be used when making decisions to understand what the outcome is likely to be if challenged.
This^^
There are many reasons why one might incorporate in DE, but taxes are unlikely to be at the top of the list. DE is hardly a “Tax Haven.”
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