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re: Treasury explores moves to block tax inversions

Posted on 8/7/14 at 12:40 pm to
Posted by ocelot4ark
Dallas, TX
Member since Oct 2009
12458 posts
Posted on 8/7/14 at 12:40 pm to
quote:

Probably a good idea not to do that, agenda or not.



Posted by Taxing Authority
Houston
Member since Feb 2010
57216 posts
Posted on 8/7/14 at 12:41 pm to
quote:

I just think one could make the argument that national healthcare would save so much money, in addition to lower taxes,

Posted by ocelot4ark
Dallas, TX
Member since Oct 2009
12458 posts
Posted on 8/7/14 at 12:42 pm to
Directly? For the company? You disagree? That's not a tangible expense each and every quarter?
Posted by C
Houston
Member since Dec 2007
27823 posts
Posted on 8/7/14 at 12:43 pm to
Is public school offered in Louisiana a benefit to companies?
Posted by ocelot4ark
Dallas, TX
Member since Oct 2009
12458 posts
Posted on 8/7/14 at 12:44 pm to
quote:

Is public school offered in Louisiana a benefit to companies?



What rabbit hole are we going down now?
Posted by Taxing Authority
Houston
Member since Feb 2010
57216 posts
Posted on 8/7/14 at 12:45 pm to
quote:

Directly? For the company? You disagree? That's not a tangible expense each and every quarter?
Read my previous post again.
Posted by Semaphore
a former French colony
Member since Jan 2013
275 posts
Posted on 8/7/14 at 12:49 pm to
Since they generally suck, no. They are a detriment.

That's why companies would rather choose Texas.
Posted by C
Houston
Member since Dec 2007
27823 posts
Posted on 8/7/14 at 12:49 pm to
quote:

What rabbit hole are we going down now?


The benefit has to actually be something people want for it to be a benefit. If the free version is shite and just reduces the supply for those who actually would pay for quality, then they will end up paying more. Govt provided health care isn't necessarily a benefit worth the additional tax burden and supplemental costs incurred to provide the quality necessary to entice overseas skilled workers/managers/executives.
Posted by ocelot4ark
Dallas, TX
Member since Oct 2009
12458 posts
Posted on 8/7/14 at 12:54 pm to
Which part?

quote:

It would also reduce demand for their products, increase expenditures for wages to cover the increase in taxes paid by employees and reduce available capital for growth. You are only counting half of the equation.


Why would demand for a company's product suffer? That depends on the elasticity of the product if you're talking about the difference being made up by personal income taxes. But are the differences NOT made up by taxes when inversions take place?

quote:

One, as noted, you cannot look at a single company in isolation. Second, the point here is not to do what benefits the company, but the economy as a whole.



I'm not looking in isolation.

Country A: 20% taxes, national healthcare
Country B: 20% taxes, employer paid or subsidized healthcare

Sooooo...a new company would go to Country B over Country A, because they wouldn't want to be part of the corporate wellfare problem. We see that all of the time. In fact, that's why so many companies are so quick to abandon the inversion strategy. :sarcasm:

Are we trying to attract companies to this country or not? That was the point that's been raised over and over in this thread. If we'd just lower our taxes, more companies would STAY here and more companies would COME here. Those being good things for the economy.
Posted by ocelot4ark
Dallas, TX
Member since Oct 2009
12458 posts
Posted on 8/7/14 at 12:55 pm to
quote:

The benefit has to actually be something people want for it to be a benefit. If the free version is shite and just reduces the supply for those who actually would pay for quality, then they will end up paying more. Govt provided health care isn't necessarily a benefit worth the additional tax burden and supplemental costs incurred to provide the quality necessary to entice overseas skilled workers/managers/executives.


But I'm not trying to appeal to PEOPLE. I'm appealing to a corporation. "We lowered taxes AND now we're just as cheap to do business in as England."
Posted by C
Houston
Member since Dec 2007
27823 posts
Posted on 8/7/14 at 12:58 pm to
quote:

But I'm not trying to appeal to PEOPLE


Not all people have the same abilities. Attracting quality is difficult because they have options. Yes if all you need are low skilled laborers you can offer then shite and they'll take it.
Posted by ocelot4ark
Dallas, TX
Member since Oct 2009
12458 posts
Posted on 8/7/14 at 1:00 pm to
I'm pretty sure the US has enough qualified workers serving up lattes at starbucks. Not sure what you're even trying to say.
Posted by AngryBeavers
Member since Jun 2012
4554 posts
Posted on 8/7/14 at 1:05 pm to
quote:

The loss of tax income has to be made up somewhere else.


Why can't we just spend less?
Posted by BigJim
Baton Rouge
Member since Jan 2010
14491 posts
Posted on 8/7/14 at 1:15 pm to
quote:

Country A: 20% taxes, national healthcare
Country B: 20% taxes, employer paid or subsidized healthcare

Sooooo...a new company would go to Country B over Country A, because they wouldn't want to be part of the corporate wellfare problem. We see that all of the time. In fact, that's why so many companies are so quick to abandon the inversion strategy. :sarcasm:


You do get that the workers are not moving countries, right? They are just moving HQ so that they don't have to pay US taxes on business done OUTSIDE the US. These moves would not decreased their healthcare costs (well, they might to a negligible degree if they move some staff).

So you point might be more effective if applied to manufacturing; but I hardly see a rush of manufacturing jobs to countries with "free"/national healthcare.
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