- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
re: Continuing theme of U.S. firms reincorporating overseas for tax purposes
Posted on 7/16/14 at 9:49 am to I B Freeman
Posted on 7/16/14 at 9:49 am to I B Freeman
quote:
While the rate is high I think the bigger objection is the US wanting to tax foreign earnings of US corporations.
Well, it is taxed as a dividend income when it is paid out. That does make some sense.
US corporation receives dividend or interest payment from wherever, it pays tax on it. Don't really see the big problem here.
1
Posted on 7/16/14 at 9:53 am to Tiger n Miami AU83
quote:
US corporation receives dividend or interest payment from wherever, it pays tax on it. Don't really see the big problem here.
Do other countries do the same? Do U.S. companies complain about this method and try to avoid it? What are the benefits and detriments of doing it this way as opposed to another way?
Posted on 7/16/14 at 10:01 am to NC_Tigah
quote:
Remedy is to cut corporate taxrates -- dramatically!
Obviously. I'm probably more liberal than 90% of this board and I clearly see the high corporate tax rate is nothing but counterproductive. We live in a world where you can do business practically anywhere and get very similar results. The US doesn't have the competitive advantage to have such high tax rates.
Posted on 7/16/14 at 10:03 am to GumboPot
quote:These idiots STILL seem to think you can govern a nation as if it has a damned fence around it. In a world as globalized as ours, the dumb fricks are chasing their tails.
These tax-lowering overseas deals, which are called inversions, have raised concerns among some U.S. lawmakers over the potential for lost tax revenue.
Posted on 7/16/14 at 10:03 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.
There will always be somewhere else cheaper to do business.
So Mr Boucher what is your solution? Suppose you force Google to move to Bermuda. Will that make you happy?
Posted on 7/16/14 at 10:04 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.
It's a pretty good rule of thumb that when a nation has to use the power of the government to keep people IN, that the problem isn't the people.
This Wyden guy would've fit in well in the Soviet Union or East Germany.
Posted on 7/16/14 at 10:06 am to Bayou Sam
quote:Because greed is bad?
Why shouldn't a sovereign nation try to stop this?
Posted on 7/16/14 at 10:09 am to ShortyRob
I love how it's called a "loophole."
Posted on 7/16/14 at 10:10 am to Taxing Authority
quote:
Why shouldn't a sovereign nation try to stop this? Because greed is bad?
Sheesh. These idiots are amazing. How do they not comprehend just how f'n shitty policy has to be to make a company want to up and leave the USA?
It's the rough equivalent of an OT 10 having a personality so damned shitty that you dump her for an IRL 3.
There is a history of nations with such shitty policy, successful people left in droves or tried to leave. The list is long and NOT very illustrious. It is sad that somehow, we appear to be adding the USA to that list.
Posted on 7/16/14 at 10:13 am to Enfuego
quote:
The Obama administration joined the growing debate over U.S. companies reincorporating overseas for tax purposes, urging lawmakers to pass legislation to limit the moves.
Why not fix the problem that causes them to leave?
This type of stuff is so stupid and to the outsider the solution doesn't seem to be " let's stop them from having the ability to leave" but rather "let's make them want to stay".
Posted on 7/16/14 at 10:26 am to Mo Jeaux
quote:
Do other countries do the same?
For the most part, yes. Tax Havens don't of course, but yes the UK and all the EU countries do the same (tax dividend income of their corps).
quote:
Do U.S. companies complain about this method and try to avoid it?
Not really. U.S. companies know it is actually a pretty favorable treatment, the deferral of tax on their foreign earnings until it is paid to them as a dividend. Sure they ask for a tax holiday so they pay zero tax on the dividend, but I think most like the deferral treatment (which is favorable compared to normal treatment of earnings, which is taxation in the year earned).
quote:
What are the benefits and detriments of doing it this way as opposed to another way?
Well, benefit is deferral. Companies can use the pretax money to do whatever they want with offshore for as long as they like since it isn't taxed until paid out as a dividend. Detriments I guess would be it would be nice to never get taxed on it at all I guess, but that isn't going to happen.
Posted on 7/16/14 at 10:36 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?
Several links in this link.
Posted on 7/16/14 at 10:44 am to JEAUXBLEAUX
quote:
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
If these companies were guaranteed that this is what the money woulld be used for, I'm sure they would think twice about moving, but they know that once the money leaves their hands it will immediately get pissed away by those dipshits in Washington. Of course the Feds are going to try to keep those companies in the US. It's that tax money that allows politicians to buy votes and stay in power. So stop giving everyone the stars and bars, apple pie bullshite.
Posted on 7/16/14 at 10:52 am to Duke
The corporate tax rate should be zero. The benefit to the economy and the people would be massive.
Page 3 of 3
Back to top
Follow TigerDroppings for LSU Football News