Posted on 07/27/2014 2:50:07 AM PDT by markomalley
When companies are heading for the door as fast as they decently can, you have to ask yourself why? President Obama's approach is a rather different one; let's just lock the door and stop them from leaving.
On both sides of the US political divide, America's apparent corporate exodus via so-called "inversion takeovers" is a source of growing concern. However, their response to the problem could hardly be more different. Broadly, Republicans want to deal with the issue by lowering corporate tax rates; but Democrats want to stop the outflow by changing the rules. As things stand, these allow companies to redomicile to lower tax regimes by increasing their foreign ownership. Takeover a foreign company in a shares transaction, and hey presto, job done. Quite a few of these deals have already been done, and many more are being considered. In any case, what with approaching mid-terms and the administration's faintly protectionist appeal to "economic patriotism", this somewhat arcane tax policy issue has suddenly gone mainstream
“These companies are cherry-picking the rules, and it damages the country’s finances,” Mr. Obama said yesterday. “It adds to the deficit. It sticks you with the tab to make up for what they are stashing offshore. I don’t care if it’s legal — it’s wrong".
Now of course, inversion would not be an issue at all if US corporate tax rates were internationally competitive. They are not. In fact US corporate tax rates are some of the highest in the world. Unsurprisingly, companies have been trying to escape this fiscal prison by redomiciling elsewhere.
(Excerpt) Read more at blogs.telegraph.co.uk ...
“These companies are cherry-picking the rules, and it damages the country’s finances,”
From the cherry’ picker in-chief!!! Lol
.
The Democrat solution would trap large companies in the US and make them noncompetitive. Small companies will look to be taken over by foreign outfits (then it’s a purchase, not an inversion).
The correct solution economically is to lower spending, and shortly thereafter, taxes.
Yep.
“Why can’t I just eat my waffle?”
All by King Baraq’s design.
No it doesn't. What you owe to the gov is set by a formula (the 1040 form). Whether U.S. companies paid a 100 billion in taxes or zero, the amount you or I pay would not change by a single penny. Only way you or I pay more is if Obama increases taxes, which he's done.
The IRS/Lois Lerner scheme represents merely a tip of the iceberg in the mammoth government intimidation scheme. The current government regime is punishing dissent harshly and using multiple government agencies to inflict maximum incursion and extortion.
Free market is free market.
“Capital goes where it is welcome and stays where it is well treated.” Walter Wriston
...the EPA, SEC, OSHA, Patents & Trademarks, Anti-trust, etc.
Obama’s ass is made of sand?
Obama’s ass is made of sand?
I guess it's all a fait accompli...and like Big Business, we peons should accept the common fate and do nothing, or flee the country like Walgreens is threatening to do.
And, also......pre-season football is upon us.....and maybe a new season of the Kardashians....so many new spectacles and entertainments to see and do......
Leni
(See my #38)
Why don't these "captains of industry and commerce" dig their damn heels in and actively campaign to replace the socialists and commies and Obama's thugs in the House and particularly the Senate. OPENLY contribute brains, power, influence and money to elect conservatives and tea partiers...and to throw the anti-business bums OUT of both houses!
How to launch such a campaign? Socialists get free advertising from the mass media, so any money paid into such a campaign is diluted immediately. There is a lot more of Them then there are of You (I have a different dog in this fight) so the probabilities do not look good for such a bloodless coup to succeed. Foreign company purchases are more of a Sure Thing, and can reap benefits in months and a ROI of two or three years; fighting for sensible taxation would take quite a few years, if not decades.
Look up "Prisoner's dilemma" for a discussion of the game theory behind the decision that business would make.
What the socialists don't want the low-information voters to figure out: high corporate profits go right to the price we all pay for goods and services. The higher the taxes, the higher the prices we all pay. Have you considered that "taxes" are tax-deductable? "They" would like you to believe that taxes on corportions are "free money", to be spent on the people. If the taxes were never collected from the corporations, the people would have more of it because less tax has to be built into the price one pays at the cash register...and the people would probably have to pay higher taxes directly to make the whole thing revenue-neutral. It's a shell game, and very few people can follow the ball that well. The alternative view has "bad optics" for the Socialists, because the Lo-fo voter would see just what is happeneing. The Magician doesn't want you to see how the ball moves from the cup to his hand...
There is another consideration against fighting the good fight: business would have to assume that any activist campaign would be made on a level playing field. Not so. Never mind the MSN's large heavy thumb on the scales of public opinion, consider the amount of fraud that would be brought to bear on the altercation. ACORN was just the tip of the iceberg.
Sir or Madame, what you call "lily-livered" is in fact recognition of hard reality. We have a hypocrite for a pResident, who thinks that cherry-picking law is "great for mine but not for thine," who holds his breath until he gets want he wants (and not what's good for the entire country), who cries "Racist!" at the drop of a hat but loves playing the race card when it suits him.
Leaving, in part, the United States (at least for tax purposes) is indeed a sane, rational reaction to the insanity that has invaded Washington DC. It's called "getting out from under" while you can. Not hope that in November and in January 2017 things will get "better". Ever hear of "coppering your bets?" That's what tax inversion is, an insurance bet against things getting worse. And it's working. Consider how little actual money is involved (for now) in tax inversion, and how loudly the stuck pigs Secretary Lew and Chief Executive BObama are squealing. If they could figure a way to get into the game...
“You don’t think that the New World
Order is going to allow a Representative republic to
exist? “
Prolly not:
http://www.youtube.com/watch?v=YfRtbIQ1kTw
I wonder about how many articles are posted here from Britain. Are they permitted to speak about other nations but not their own?
A few observations:
Historically known for exorbitent tax rates, Great Britain is now welcoming U.S. companies fleeing the more egregious U.S. corporate tax code.
British media outlets are addressing U.S. newsworthy stories that U.S. media will not.
The members of this forum are usually more interested in stories affecting the U.S. than Great Britain.
Are the individual businessmen fighting as citizens? I understand what you said (and noticed no other responses) and can understand the competitive spirit in business preservation, but were not the founding fathers also businessmen? What would happen if everyone who believes in this nation were willing to give it all to the fight?
Answer: Eric Holder
Of course you are 100% on-t@rget beyond a doubt... they are driven by threat of loss of profit so they cave in to DOJ, EPA, DOE, DHS... etc. ... another symptom of a society in decline. sigh
Many have decided to simply move the whole kit-and-kaboodle off-shore.
“... I don’t care if it’s legal — it’s wrong”. - Obama “
One could say the same about abortion...
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