"... and the corporations sit there in their... in their corporation buildings, and... and, and see, they're all corporation-y... and they make money."
Posted on 08/27/2014 9:39:10 AM PDT by Para-Ord.45
" The purpose of an inversion has never been, and never could be, and never will be, "ooh, Canada has a 15 percent tax rate, and the U.S. has a 35 percent tax rate, so we can save 20 points of taxes on all our income by moving." Instead the main purpose is always: "If we're incorporated in the U.S., we'll pay 35 percent taxes on our income in the U.S. and Canada and Mexico and Ireland and Bermuda and the Cayman Islands, but if we're incorporated in Canada, we'll pay 35 percent on our income in the U.S. but 15 percent in Canada and 30 percent in Mexico and 12.5 percent in Ireland and zero percent in Bermuda and zero percent in the Cayman Islands."
What is he talking about? The U.S., unlike most developed-world governments, insists on taxing the global income of its citizens and corporations that have U.S. headquarters. And because the U.S. has some of the highest tax rates in the world, especially on corporate income, this amounts to demanding that everyone who got their start here owes us taxes, forever, on anything they earn abroad.
This is a great deal for the U.S. government, which gets to collect income tax even though it’s not providing the companies sewers or roads or courts or no-knock raids on their abodes. On the other hand, it’s not a very good deal for said citizens and corporations...
(Excerpt) Read more at bloombergview.com ...
Yet NONE of our “esteemed /s” Main Stream Media will bother to explain that, will they?
Everything must be reported so as to put the AMERICAN company in the most extreme bad light.
I’ve seen not even a mention of the fact that Buffet, up to his nose in this, is the Billionaire that want us ALL to pay higher taxes.
The drum beat will continue to be the false claim that Burger King is acting only to avoid the taxes due to THIS country.
Frankly, I visualize the beginning of a parade. The band will be playing “The Inversion March”.
The Left and their cheerleaders, the MSM, will not garner much sympathy from most Americans. EVERYBODY understands taxes, and instinctively know that you do whatever you must do to pay as little as legally possible, even corporations.................
Even if it were, so what? Real people with real jobs have to compete on price. The government certainly shouldn't be treated any better than we are who produce wealth. I can't even imagine why they should be treated AS WELL as we are, given that we create wealth and they do not.
1. U.S. companies pay the U.S. Internal Revenue Service a tax rate of 35 percent on income they earn in the U.S.
2. U.S. companies pay the IRS a tax rate of 35 percent on income they earn abroad, but they can credit the amount of foreign tax they pay against that liability. So for instance if you earn $1,000 in Canada, you owe $350 of taxes in the U.S., but you can reduce that by the $150 that you paid to Canada (which has a 15 percent corporate tax rate), so you only end up paying the IRS $200. But still your effective rate is 35 percent — 15 percent to Canada, 20 percent to the U.S. — though you can defer those U.S. taxes for a long time if you just invest the money offshore.1 And because basically no countries have a higher corporate tax rate than the U.S. — and plenty have lower or zero rates2 — that means that U.S. companies owe the IRS taxes on pretty much all the income they earn anywhere in the world.
3.Foreign companies pay a tax rate of 35 percent on the income they earn in the U.S. And, for the most part, that’s it: Their home tax authorities rarely charge them tax on income that they earn in the U.S.
4.Foreign companies mostly just pay whatever the tax rate is in the country where they earn their income, and don’t bother writing extra checks to the U.S. tax authorities.
http://www.bloombergview.com/articles/2014-08-25/burger-king-may-move-to-canada-for-the-donuts
It’s yet another in a seemingly infinite series of things that liberals have a bumper-sticker generated (or Dear Leader generated) opinion about but about which they know absolutely nothing whatsoever.
And the irony of calling out someone elses’ actions as being “unpatriotic” when these people hate every aspect of America and think we are the most rotten, vicious, bigoted bunch of pasty-faced white people that has ever existed is not just palpable, it’s a firehose of irony that should be shoved down their very throats.
They want millions of people here who have entered illegally (this means trashing our laws for those of you in Rio Linda) who send money out of the US in the form of remittances, to the extent of 2% of Mexico but nominally 15% of El Salvador & Honduras GDP and 10% of Guatemala, etc; but these corporate demons who want to do what is in large effect the same thing are monsters who probably should be compared to Hitler but they’re just being nice for now.
There is no retribution short of seeing these people cry on the floor in a fetal position that will satisfy me.
So, do corporate tax rates affect economic growth? Consider the fastest growing economy (as of 2013): 1) it cut corporate taxes from 37% to 24% with the 5 year goal of 15%, 2) it cut personal income taxes by approximately the same percentages, 3) it’s reduced gov’t share of GDP from about a third to 22%, with the long run goal of a single-digit share...some say 5%. The country: Chile.
The last time we even attempted to reduce gov’t share of the economic pie was under Reagan, and those tax and program cuts fueled an economic boom not seen since post WWII. Alas, today’s politicians pass programs purely to get reelected...one is hard pressed to explain free cell phones otherwise. They don’t have the stones to cut spending. With over half the country on some form of gov’t subsidy, this Republic is doomed.
Good explanation.
MOVE!!!!!
I do live in a blessedly Conservative area.
Gulf Coast of Florida, Eglin AFB right here, Ft. Walton Beach...........
Burger King is a Brazilian Company
Cant Holder throw the BK execs in federal prison to make an example of them?
That boom was also fueled with debt. We dramatically increased the national debt under Pres. Reagan. It was not hard to grow a economy under a preglobalized standing. It is a different world to today.
Cutting taxes is one thing. We haven't cut debt and .Gov in decades.
How long ago?.................
The know-nothing drooling Leftists that hate corporations, even though they probably couldn't make change for a dime, have bumper stickers showing their hatred of what they don't understand.
They hate the corporations, but are glad to apply for job at one, or buy necessary items from them, or live off the taxes paid by corporations.
"... and the corporations sit there in their... in their corporation buildings, and... and, and see, they're all corporation-y... and they make money."
I am a stock holder..
MOVE!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
That statement without context is meaningless. During the 8 years Reagan was President, he added $1.86 trillion to the national debt. In just 5 years, Obozo has added $5.081 trillion in debt and has 3 more years left. He also criticized Bush saying the deficit was "an indication of failure" of the Bush policies and he promised "to cut the deficit in half by the end of his first term." Just like everything else he's promised, he failed miserably. I think the current President is the worst leader this Republic has ever seen...and that includes Carter.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.