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USA Berates Cayman
Cayman Net News ^ | Friday, July 2, 2004

Posted on 07/05/2004 2:49:03 PM PDT by phil_will1

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This is sooooo disgusting! The legislators who write our ridiculous tax laws demonize the businessmen who take advantage of the financial incentives to save their shareholders tax expense.

Reminds me of Claude Rains in "Casablanca" who said he was "shocked" that there was gambling going on in the casino.

1 posted on 07/05/2004 2:49:03 PM PDT by phil_will1
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To: ancient_geezer

Tax reform bump


2 posted on 07/05/2004 2:49:57 PM PDT by phil_will1
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To: phil_will1

Maybe if there were no corporate tax, they wouldn't leave.

Oh wait, that defeats the purpose of having them here.


3 posted on 07/05/2004 2:52:30 PM PDT by Guillermo (France Sucks)
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To: phil_will1

Those corporations should be declared as 100% foreign and IMPORT TAXES levied against them and all their products.

We don't need to provide welfare for ILLEGAL aliens - this includes alien corps!


4 posted on 07/05/2004 2:55:25 PM PDT by steplock ( www.spadata.com)
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To: phil_will1

Apparently these guys never heard of FISCS, foriegn sales corporations that must be set up off shore to facilitate use of US government law promoting tax savings on foreign sales.

The Cayman Islands are a favored location because they are close. There are many others, all are for compliance with IRS regulations. These FISCS have been under fire for years because other countries, most notably the French think they are unfair trade practices.


5 posted on 07/05/2004 3:00:57 PM PDT by bert (Don't Panic !)
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To: phil_will1
Can't blame them for this. Any business that does not take full advantage of every legal thing they can is not being run correctly.

With that said, corporations should not pay income taxes in the first place. Nor should they collect any for the gov't.

6 posted on 07/05/2004 3:01:41 PM PDT by isthisnickcool (Strategery - "W" plays poker with one hand and chess with the other.)
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To: phil_will1
The legislators who write our ridiculous tax laws demonize the businessmen who take advantage of the financial incentives to save their shareholders tax expense.

I wouldn't be too quick to condemn these companies. There's lots of European money invested in the US precisely because the US has lower tax rates.

7 posted on 07/05/2004 3:05:36 PM PDT by Paleo Conservative (Do not remove this tag under penalty of law.)
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To: Guillermo

Maybe if there were no corporate tax, they wouldn't leave.

Heck change how the federal government taxes to a retail sales tax only and half the world's businesses are likely to show up in our backyard, can't let that happen:

 

Chairman of the House Ways and Means Committee,
Rep. Bill Archer (R-TX)
August 12, 1996

 

And here we still sit. Disgusting.

8 posted on 07/05/2004 3:14:47 PM PDT by ancient_geezer (Equality, the French disease: Everyone is equal beneath the guillotine.)
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To: *Taxreform; Taxman; Principled; Bigun; EternalVigilance; kevkrom; n-tres-ted; Poohbah; CliffC; ...

"The IRS has created more liars than fishing and golf combined."
--Will Rogers

A Taxreform bump for you all.

If you would like to be added to this ping list let me know.

John Linder in the House & Saxby Chambliss Senate, offer a comprehensive bill to kill all income and payroll taxes outright, and provide a IRS free replacement in the form of a retail sales tax:

H.R.25, S.1493
A bill to promote freedom, fairness, and economic opportunity by repealing the income tax and other taxes, abolishing the Internal Revenue Service, and enacting a national retail sales tax to be administered primarily by the States.

Refer for additional information: http://www.fairtax.org & http://www.salestax.org


9 posted on 07/05/2004 3:18:14 PM PDT by ancient_geezer (Equality, the French disease: Everyone is equal beneath the guillotine.)
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To: Paleo Conservative

"I wouldn't be too quick to condemn these companies. There's lots of European money invested in the US precisely because the US has lower tax rates."

I'm NOT condemning the companies; I'm condemning the legislators who write the laws that provide the incentives for companies to do this and then criticize them for taking advantage of the system that THEY set up!

THe issue isn't the rate of corporate taxation, as I understand it. The US is one of a very few countries around the world that insists on taxing US based corporations on their world-wide income. I read the other day that the only other country that does that is Uganda, or something like that.


10 posted on 07/05/2004 3:18:14 PM PDT by phil_will1
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To: Guillermo
Maybe if there were no corporate tax, they wouldn't leave. Oh wait, that defeats the purpose of having them here.

The purpose of having corporations here is for them to pay tax?! Ehhhh???

I think their purpose is to make a profit. As a by product of profit, they employ people.

No, the purpose of having business in America isn't to collect tax. Business doesn't pay tax anyway... business only recovers tax costs, like any other cost, by increasing prices, reducing wages, or lowering ROI.

It is the goal of business to mazimize profit- and that goal is obviously served by reducing expenses of all kinds - including tax expenses to include income tax, payroll tax, and compliance costs.

I try to take all my legal deductions when I file...why shouldn't business do the same??

The problem is the tax system. Plain and simple.

11 posted on 07/05/2004 3:48:42 PM PDT by Principled
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To: Principled

I was speaking from their point of view.

Liberals think Corprorations exist to pay taxes and provide jobs.

Conservatives understand that Corporations exist to make a profit for its owners.


12 posted on 07/05/2004 4:01:45 PM PDT by Guillermo (France Sucks)
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To: steplock

Corporations are associations of shareholders. They are all ultimately owned by individuals, with the exception of shares owned by foundations and governments.

The only things to tax are you and me. Increase taxes on any legal entity, and you and me pay.


13 posted on 07/05/2004 4:05:40 PM PDT by eno_ (Freedom Lite, it's almost worth defending.)
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To: steplock

How 'bout if Congress didn't tax them so much and they come back here on their own. You know, the old honey and vinegar story. They are outside the US because the financial climate is better somewhere else for them, the same reason I don't live in Hawaii.


14 posted on 07/05/2004 4:07:59 PM PDT by HighWheeler ("Would I turn on the gas if my pal Mugsy were in there?" "Ye might rabbit, ye might." Bugs, 1954)
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To: Guillermo

Phew! I thought you were, well, socialist!


15 posted on 07/05/2004 4:09:42 PM PDT by Principled
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To: HighWheeler

I would agree ONLY if they totally removed the illegal citizens' income tax. It only serves to enslave.

If they want to tax - tax EVERYBODY - that includes Kerry, Kennedy, Bush, etc for spending! That means a sales tax. They can't hide behind their tax shelters etc that way. No more exemptions either - they only go to those that pay the criminal lawyers, politicians, and judges.

The corporations though, merit the income tax. They are not exempt anywhere in the world except here on the USA.

If they have an exemption from a different country, then that "corporation" actually belongs to that country (communist china for example).


16 posted on 07/05/2004 4:22:34 PM PDT by steplock ( www.spadata.com)
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To: phil_will1
Sure nit wit. As if a US small businessmen can compete against such tax cheats. I have to go with the Democrats on this one. Such off shore wise guys should be penalized. Should be a clampdown if they want to do business here. Evey tax dollar they cheat on, is one you and I have yo pay.
17 posted on 07/05/2004 4:25:53 PM PDT by dennisw (http://www.prophetofdoom.net/)
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To: dennisw
Sure nit wit. As if a US small businessmen can compete against such tax cheats. I have to go with the Democrats on this one. Such off shore wise guys should be penalized. Should be a clampdown if they want to do business here. Evey tax dollar they cheat on, is one you and I have yo pay.

I don't think you realize that we, individual taxpayers, already pay for every tax dollar levied from corporations. The tax is simply another expense that is passed on to the consumer. If a corporation finds a legal way around those taxes, they can reduce expenses, sell for less, and gain marketshare. If you tax the hell out of them, they will be at a disadvantage to those companies who suffer from less of a tax burden.

Another thing to consider is that taxing corporations is a double-taxation of sorts. All coporate employees pay income tax already, and all shareholders have to report their dividends as income, to be taxed. So, profits made by the corporation are taxed, then the remainder that goes to dividends is taxed again as individual income. That is my understanding. If any tax lawyers out there want to correct me, lease do.

If these guys can figure out a way to get past these business-killing taxes, I say more power to them.
18 posted on 07/05/2004 4:34:41 PM PDT by fr_freak
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To: dennisw

Evey tax dollar they cheat on, is one you and I have yo pay.

I've got news for you, every tax dollar they pay, you pay them first so the government can collect it from them. Furthermore it costs that business, and ultimately you through the stuff you buy, another 65cents for every dollar of tax collected through those businesses.

Ain't it nice to know, that they got you at the backend while you are filing to pay at front end too?

DO YOU PAY YOUR INCOME TAX
AT THE SUPERMARKET?

by D. Sherman Cox J.D. L.L.M. Taxation

19 posted on 07/05/2004 4:36:14 PM PDT by ancient_geezer (Equality, the French disease: Everyone is equal beneath the guillotine.)
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To: dennisw

Don't jump to the conclusion that these guys are "unfair tax evaders".

Remember, these companies are ALREADY paying taxes on all their income that they make in foreign countries. What they are avoiding is paying income taxes AGAIN to the US government on that income -- something that no other country requires of their corporations.

The law is broken. That's why these companies have to jump through hoops to just get back to a level playing field with other countries. Fix the law and these subsidiaries would close up instantly.

By the way, I suspect that if they DIDN'T do this, they would also be subject to criminal prosecution under Sarbanes-Oxley because they are not looking out for their shareholders' investments to the greatest degree possible.


20 posted on 07/05/2004 4:49:28 PM PDT by mhx
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