Posted on 02/17/2016 7:28:42 PM PST by TigerClaws
For most average American’s, who earn around $42,000 per year, paying taxes is something that is done every year. After all, taxes help pay for schools, roads, infrastructure and more. Corporations throughout the country do the same, by not only abiding by the letter of the law, but the intent. This is known as corporate responsibility. However this is not the case with three of the top three U.S. technology companies.
The Double Irish strategy, nicknamed because of the loose corporate tax laws in Ireland, is used by large companies based in the United States but operating all over the world. A loophole in the U.S. tax code allows them to avoid income a tax if that income (profit) was earned by a subsidiary overseas, even though the U.S. based company owns the subsidiary. How Double Irish Works
The Double Irish strategy needs three companies (or more) to work. The U.S. company (company A), licenses its intellectual property to a subsidiary based in Ireland. This first Irish company (B) is legally based offshore, in a tax haven such as the Bahamas or Cayman Islands for instance. This company licenses the patent rights to a second Irish company (company C). The second company receives income from the first Irish company (B), but its taxes are low because of royalties and fees paid to the first Irish company (B). These royalties and fees are deductible expenses, so no taxes are paid on them. The U.S. company doesn’t pay any Federal taxes on the income from the Irish companies because the earnings were not made in the U.S. The Cost of Double Irish
In recent years, three of the top U.S. tech companies have saved over $8 billion dollars in taxes.
(Excerpt) Read more at visualeconomics.creditloan.com ...
Zuckerberg is a big pro refugee invasion guy as well.
Excellent use of offshore companies and tax treaties. Well done.
They are.
Johnson Controls just did this very thing, and a bunch of the top vp’s and above are big Obama donors.
For example, Despite Cruz^s attacks on his party^s donor class and establishment, the Texas senator Ted Cruz^s GOP campaign has received $37 million from just four donors. The Wilks family of Cisco, Texas, New York hedge fund tycoon Bob Mercer, Texas energy investor Toby Neugebauer and Illinois manufacturing moguls Dick and Liz Uihlein.
To be clear, I think every company and person should do everything legally allowed to keep their tax bills as low as possible.
At the same time I will point out the hypocrisy of liberals who vote for those that want to punish business for this, and pass laws that are anti-business. Because they kow the liberals they vote and donage to will not come after them for doing so, but will demonize enemies for it.
This could also be titled:
How Google-Apple-Facebook Obey The Law.
Trump talks about this all the time, and how he’s going to stop it.
Moochie's million dollar vacations, Barack's golf trips, Hillary's 'round the world Good-Bye World tour, free Obamacare for illegals, handouts to Obama's rape-u-gees, the fight against climate change, military arms and weapons to the Islamic Brotherhood and ISIS.....
I agree. In fact every dollar that escapes the government leviathan is a dollar better spent.
Lower corporate taxes. The Swedes have onerous personal rates but they know what fuels the engine. Corporate tax is 15%.
They do this, legally and at tremendous additional expense, to avoid the onerous US corporate tax rate (the highest in the world), and to avoid double-taxation (US is among the few countries that assess taxes on companies’ earnings that occur outside the US).
At the same time, whatever taxes any company does end up remitting to ANY taxing authority, in any form, are always reflected in the prices of the products they sell. They’re an expense, just like a utility bill or worker salary. Said another way, corporations don’t pay taxes - the consumers of their products do. But they do COLLECT taxes - as embedded in the prices of their goods.
Want to fix this supposed problem? Significantly reduce or eliminate corporate taxes.
> Trump talks about this all the time, and how he’s going to stop it.
Yea, by the best method; not punitive but rewarding. Why engage in fancy legal contortions if the US tax rates are lowered to competitive rates?
(from Trump’s site:)
“No business of any size, from a Fortune 500 to a mom and pop shop to a freelancer living job to job, will pay more than 15% of their business income in taxes. This lower rate makes corporate inversions unnecessary by making America’s tax rate one of the best in the world.”
Or better still:
How Google-Apple-Facebook Exploit Loopholes Engineered Specifically to Benefit Big Corporations, and Which "Ordinary" Americans Could Never Use
Regards,
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