Posted on 08/25/2014 8:43:05 AM PDT by BenLurkin
This has to do with two elements of the American tax system.
For one, the U.S. has the highest statutory corporate tax rate in the OECD, a combined rate of about 39 percent when taking into account federal and state taxes. Effective tax rates are harder to come by, but a report from the Tax Foundation found that the U.S. had the highest marginal effective corporate tax rate among developed country groups. It can be profitable then for U.S. firms to move offshore to reduce tax liabilities.
But there is another factor at play here as well. Most developed economies use what’s known as a “territorial” tax system. Under such an approach, income is only taxed when it’s earned domestically. So a U.K.-headquartered company will only pay U.K. taxes on its British income. The United States, however, employs a hybrid between a territorial and worldwide system. U.S. citizens and corporations are required to pay U.S. taxes on all income – even if that income is earned outside of the country. (The tax system provides credits for foreign taxes paid, which reduce or eliminate double taxation of income.) But foreign income is only taxed upon repatriation – when it is brought back to American shores. At this point the incentives should be fairly clear – companies have every reason to avoid bringing their earnings back to the U.S. if they were earned in a lower corporate tax rate country....
Simply put, a worldwide tax system puts American firms at a significant competitive disadvantage
(Excerpt) Read more at forbes.com ...
My concern is BK taking over Tim Horton. TH serves a lot of healthy choices; BK serves slop. I hope BK doesn't trash TH's food.
When you put money before country, it’s unpatriotic. Take a trip through Arlington and get the feel of what it takes to be an American.
That's the thing a lot of Americans don't understand. They think that the US is some low-tax, free market country. The reality is that in many ways, we are just as bad or worse than European countries.
In several ways, our tax system is the highest and most progressive. And yet Obama, the Dems and the media blabber on about "the rich" paying "their fair share" or "a little more to help those in need" as if the rich aren't paying anything. Its one of many reasons why this country is swirling down the toilet.
If a person chooses to leave behind their American citizenship and move to another country. They have to pay a exit fee. A corporation who chooses to do they same thing, should pay a similar theme.
Equal treatment of each.
You obviously don't understand the tax system. If you were to end taxing corporations, forming a personal corporation would not prevent you from paying taxes. The corporation would not pay taxes, but as soon as you took any money out of the corporation as salary or other income, you would pay the taxes. Right now, if you form a corporation, both you AND the corporation pay the taxes.
I agree that there shouldn’t be taxes on corporate profits. The corporations also shouldn’t be allowed to lobby any level of government, take any government aid or spend any money influencing elections and stockholders should be taxed at regular income tax rates on profits.
Why is a company required to pay the US taxes on income earned elsewhere in the world? That is not patriotic, it is just dumb. As Samuel Johnson said "(False) patriotism is the last refuge of the scoundrel."
So they should have all of the rights of person hood, but play by a different set of rules?
I’d also add that we should send a bill for defending their interests globally with our military to their new host country. Better yet, let the citizens of the new host country do the fighting and dying. I’m sure their militaries are up to the task.
I think we should just nationalize all corporations. They didn’t build that. Somebody else built that.
Coorporations are not citizens... and if a coorporation wants to decide it no longer wishes to based in the United States, that’s fine it should be treated as a foreign entity.
It shouldn’t be free to effectively “renounce its citizenship” and at the same time expect all the perks and privileges of being a “US Citizen”.. if you will.
Hahahaa BK isn’t desperate because of taxes, its desperate because its a poorly run fustercluck.
So, let me understand you... If I make a product in the US, use the nations infrastructure, resources both private and public to create that resource, the national laws and institutions to protect my company and product, but then ship it overseas to sell it, I should not owe any tax at all on the profit that sale generates to my host country?
Yea, good luck with that working out for you.
hahahahaahaha
Stock price and profits are not remotely related....
I can run a company making $10 Billion a year in profits, yet have a stock price that doesn’t move a dime... or vice versa.. have stock that goes up 10 times, but have a company that is actually making no profits.
Your attempt to equate dividends/stock price to profits as double taxation is laughable.
They didn't build that! Somebody else built that!
Try it, and tell us how that works out for you.
Not really that hard... Playing with a P&L Statement is simple as pie..
You really are naive if you think profit and stock price are highly linked... they are a loose association at best.
There are companies out there that are losing money yet their stocks go up, and companies out there with solid profits and revenues that have seen their stocks clobbered. Fear and Greed drive the stock market, not profits and losses.
Trying to argue a 1 to 1 correlation is flat out ignorant.
Not sure how you go from corporations should pay taxes to nationalize them... kind of going way beyond hyperbole with that exaggeration.
Corporations pay taxes on earnings.
A portion of those earnings are paid out as dividends.
Shareholders pay taxes on that portion.
Why isn't that double taxation?
So it doesn't minimize the correlation at all (not arguing that it is 1 to 1, by the way), but reinforces it.
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