Posted on 07/27/2014 7:59:58 AM PDT by Sean_Anthony
Obama has called “for an end to a corporate loophole that allows companies to avoid federal taxes by shifting their tax domiciles overseas in deals known as “inversions.” Such as statement shows the utter ineptitude that Obama has for understanding a) what inversion actually is and b) how his policies are the cause.
(Excerpt) Read more at canadafreepress.com ...
Bad news for the Feinsteins and the Pelosis
I’m not for onerous taxes...but it is a perverted scheme to allow a tax break making it more attractive to move one’s business off shore and fire domestic workers.
All Obama has to do is lower the taxes to 20% and get rid of half of the Federal Employees. That would probably save more cost than anything else.
“I’m not for onerous taxes...but it is a perverted scheme to allow a tax break making it more attractive to move one’s business off shore and fire domestic workers.”
Why should a non US company pay the US taxes on its income?
The question involves US based corporations being offered tax breaks to move its manufacturing overseas(and lose American jobs) while still remaining US based.
Let’s face it, what the POS and these Leftist pukes want is de facto nationalization of US businesses. So if US retailers were prohibited from “inverting”, would foreign companies with retail outlets in the US be treated in the same punitive way by paying a US corporate tax rate? Either foreign companies would gain a competitive advantage or all companies would have to pay the US corporate tax rate for doing business in the US. Whatever the outcome, consumers would face higher prices and economic activity would slow down, along with tax collection.
The way the U.S. tax code is currently set up, companies that do business in multiple countries have a huge incentive to domicile outside the U.S. There’s no getting around that, though I wouldn’t expect a guy whose resume only included two items of note before he entered the White House (exchange student from Kenya and community organizer) to understand this.
while still remaining US based.
Is Toyots a US based corporation?
American companies are not being offered tax breaks to move overseas. They are exercising a choice between having more of their profits extorted by a regressive and punitive tax code and being able to keep their money by being offshore. There is estimated to be almost $1 trillion in overseas profits that will never come to the US because of its business-unfriendly environment. If I owned a company, I would like to keep more of my money. If that meant I went abroad, so be it. No other major country in the world taxes the way that the US does. All these leftist politicians whine over corporations doing this, yet it is their own laws and regulations that have driven the companies away.
In New York, a corporation can expect a federal tax rate of 35% and a state tax rate of 10.25%. Then there are the FICA and Medicare employer match taxes of 7.45%, federal and state unemployment, workers’ compensation insurance, and a little gem in NY called the MTA payroll tax which costs $.34 per $100 of payroll. This tax is a confiscatory kickback to the MTA and even companies whose employees do not use MTA have to pay it. The MTA is corrupt, broken and bankrupt and can only survive by the state legislature confiscating wealth from the producers to pay for it.
American companies who have shifted operations to overseas will never return with those jobs as long as the bloated federal leviathan continues its communist practices. Remember that the ten planks of communism include a heavy or regressive or graduated income tax.
I honestly believe that the bureaucrats wanted all of those jobs to go overseas so that they could result in what we have today—a lousy, stagnant economy with an eroding manufacturing base and record numbers of unemployed Americans who have no choice sometimes than to become dependent upon the state for their existence (in the form of unemployment, food stamps, Section 8, SSDI disability social security, etc.
“Such as statement shows the utter ineptitude that Obama has for understanding a) what inversion actually is...”
I disagree. Barry has been performing the time honored “Cranio-Rectal Inversion” for the last several years. He is engaged all right.
When I asked about the tax advantages, I was told the savings were "more money than you can ever imagine"
“Capital goes where it is welcome and stays where it is well treated.” Walter Wriston.
The logical follow through here would be to tax the total profits of any company on earth whose products are sold, or hell- given away or smuggled, in the United States and on any company that has ever been an American company or that employs anyone that was ever an American citizen or resident. I believe that some or all of that is coming.
The first step in Obama’s Berlin Wall. I computer wall to keep business in.
He won’t build a fence to keep aliens out, but a wall to keep business from fleeing his taxation is just the ticket.
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