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Started By
Message
re: Continuing theme of U.S. firms reincorporating overseas for tax purposes
Posted on 7/16/14 at 8:41 am to Enfuego
Posted on 7/16/14 at 8:41 am to Enfuego
quote:
Finance Committee Chairman Ron Wyden (D., Ore.) also hasn't pushed for a quick fix. In a Wall Street Journal op-ed in May, he said that "this loophole must be plugged." But he indicated that he is still hopeful for a comprehensive tax rewrite that would limit inversions on a retroactive basis.
So they would prefer these companies completely move their base of operations out of the country? Are we going to stop allowing foreign-based companies to operate here in the US?
Morons.
Posted on 7/16/14 at 8:42 am to Bayou Sam
quote:
Why shouldn't a sovereign nation try to stop this?
Because businesses will leave (or go out of business)?
Posted on 7/16/14 at 8:42 am to JEAUXBLEAUX
quote:
so let's see instead of finding fault with either these unpatriotic companies or finding with a system that allows it, we blame the government? The corps skate away with their profits to avoid taxes and its someone Else's fault.
Our government shouldn't be actively trying to run businesses off.
Posted on 7/16/14 at 8:43 am to JEAUXBLEAUX
quote:
keep America's money in America
At what point should we address the fact that our tax rates are not competitive with the rest of the world?
Posted on 7/16/14 at 8:45 am to JEAUXBLEAUX
Process is called inversion and several months ago it was stated they would probably raise the ownership % threshold required. They can pretty much nix the entire inversion process just by changing the required US/Foreign ownership and they warned US companies to expect this and plan accordingly early in 2014.
Posted on 7/16/14 at 8:45 am to Tiger n Miami AU83
Fair Tax
/problem.
/problem.
Posted on 7/16/14 at 8:47 am to Tiger n Miami AU83
quote:
Process is called inversion and several months ago it was stated they would probably raise the ownership % threshold required. They can pretty much nix the entire inversion process just by changing the required US/Foreign ownership and they warned US companies to expect this and plan accordingly early in 2014.
Businesses will easily get around this.
Posted on 7/16/14 at 8:49 am to imjustafatkid
quote:
Finance Committee Chairman Ron Wyden (D., Ore.) also hasn't pushed for a quick fix. In a Wall Street Journal op-ed in May, he said that "this loophole must be plugged." But he indicated that he is still hopeful for a comprehensive tax rewrite that would limit inversions on a retroactive basis.
So they would prefer these companies completely move their base of operations out of the country? Are we going to stop allowing foreign-based companies to operate here in the US?
No, he is saying instead of the quick fix, which is just changing the ownership percentage required for an inversion going forward, he wants to change it with retroactive treatment so that the US corps that bought foreign entities to increase their foreign % and get the favorable treatment, would have to go back and back pay US taxes that would have applied had the higher % existed however far back they want to go.
I could see some retroactive treatment as they have been warning US companies not to expect the current inversion laws to remain the same for a while now.
Posted on 7/16/14 at 8:50 am to JEAUXBLEAUX
quote:
so let's see instead of finding fault with either these unpatriotic companies or finding with a system that allows it, we blame the government? The corps skate away with their profits to avoid taxes and its someone Else's fault.
keep America's money in America and get rid of these tax havens and shelters. These legitimate taxes could pay for education, lunches for kids et
Many countries have better education systems, cheaper healthcare, etc. than us yet ALL have lower corporate tax rates? Hmmmm.
This post was edited on 7/16/14 at 8:51 am
Posted on 7/16/14 at 8:51 am to Lsut81
quote:
As in, if they lowered it, how many of these companies would quit parking money overseas and actually bring it here?
I have a theory on the reason the federal government is enjoying keeping these corporate dollars parked overseas and it has to do with monetary policy.
As it stands now, the Federal Reserve is in total control of interest rates with it's ZIRP, zero interest rate policy (which includes QE). These near zero interest rates affords the federal government to borrow very cheaply and borrow a lot which translates into more sending and thus more power and control.
If these corporate dollars were repatriated, that's well over a trillion in some of the publications I've read, these dollars would flood the economy and the Federal Reserve would potentially lose control of ZIRP. If the FR loses control of ZIRP then the federal government's spending spree is over.
Posted on 7/16/14 at 8:51 am to imjustafatkid
quote:
Businesses will easily get around this.
No. They won't. At all. Ownership is ownership. The whole inversion equation and process is really a simple one that compares foreign to US ownership. They will raise the foreign percentage required for an inversion and that will be that.
Posted on 7/16/14 at 8:51 am to JEAUXBLEAUX
quote:Good God Almighty!
so let's see instead of finding fault with either these unpatriotic companies
Are you familiar with the term fiduciary duty?
Please do discuss "patriotism" of an international corporation when said patriotism offers nothing but a diminished return for shareholders.
quote:Will never happen. Push it, and corporations will only increase ownership transfers to foreign companies. Remedy is to cut corporate taxrates -- dramatically! do everything we can to bring, not just the money, but the business back to the US. Corporations are not the bad guy here. Government stupidity is the bad guy.
America and get rid of these tax havens and shelters. These legitimate taxes could pay for education, lunches for kids et
Posted on 7/16/14 at 8:53 am to JEAUXBLEAUX
quote:
so let's see instead of finding fault with either these unpatriotic companies or finding with a system that allows it, we blame the government?
You really think businesses are "patriotic" or "unpatriotic"?
Posted on 7/16/14 at 8:57 am to Tiger n Miami AU83
quote:In other words he grandstanding?
he wants to change it with retroactive treatment so that the US corps that bought foreign entities to increase their foreign % and get the favorable treatment, would have to go back and back pay US taxes that would have applied had the higher % existed however far back they want to go.
Posted on 7/16/14 at 9:02 am to Lsut81
quote:
Are there any stats as to what impact lowering the US corporate tax would have?
As in, if they lowered it, how many of these companies would quit parking money overseas and actually bring it here?
I'd imagine it's close to a wash?
While the rate is high I think the bigger objection is the US wanting to tax foreign earnings of US corporations.
In a stupid move under the guise of stopping jobs from going offshore Congress passed a law taxing all foreign earnings of US corporations if the earnings came back to the US. What happened? the companies simply left the money in their foreign subsidiaries. There is over $1 trillon in cash on the balance sheet of US multinationals that could be invested in the US but the government insists on taxing it if it comes back to the parent US company.
Posted on 7/16/14 at 9:12 am to NC_Tigah
There is a fundamental problem with companies taking their money overseas while still taking advantage of the higher standard of living (skilled labor, infrastructure, health, education, etc) that the US has to offer.
There will always be somewhere else cheaper to do business.
There will always be somewhere else cheaper to do business.
Posted on 7/16/14 at 9:20 am to BobBoucher
quote:
There is a fundamental problem with companies taking their money overseas while still taking advantage of the higher standard of living (skilled labor, infrastructure, health, education, etc) that the US has to offer.
Are you just making that up? I constantly hear on this board from the left about the advanced healthcare, infrastructure, education, etc. of said foreign countries. Your claim makes no sense.
Posted on 7/16/14 at 9:28 am to GumboPot
quote:
Your claim makes no sense.
Those are some of the things that typically factor in to standard of living calculations, no?
We're #3 in the world.
Posted on 7/16/14 at 9:45 am to Enfuego
quote:
Mr. Lew wrote. "We should not be providing support for corporations that seek to shift their profits overseas to avoid paying their fair share of taxes."
I wonder what tax breaks Mr. Lew and others in this administration take to avoid paying their fare share of taxes?
Posted on 7/16/14 at 9:45 am to Enfuego
quote:
The move could help Walgreen lower its U.S. tax bill saving the company hundreds of millions of dollars a year—money that wouldn't flow into the U.S. Treasury
If I own shares of Walgreens and they distribute those savings out in the form of dividends, that gets taxed. Or if the don't distribute those dividends and instead the value of the shares I own go up and I decide to sell, that gets taxed.
They still get their money.
Walgreens is not beholden to act in the benefit of the government. They're beholden to act in the benefit of their shareholders. Them moving operations is good for business.
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