"Yes they would. The FairTax requires all income earned in the US by foreign corporations and non-resident aliens to be taxed at the FairTax rate."
Can you show this to me? I have a hard time believing that a bill eliminating income tax (personal and corporate) being able to enforce an income tax.
Can you show this to me? I have a hard time believing that a bill eliminating income tax (personal and corporate) being able to enforce an income tax.From the bill:
`SEC. 905. WITHHOLDING OF TAX ON NONRESIDENT ALIENS AND FOREIGN CORPORATIONS.
`(a) In General- All persons, in whatever capacity acting (including lessees or mortgagors or real or personal property, fiduciaries, employers, and all officers and employees of the United States) having control, receipt, custody, disposal, or payment of any income to the extent such income constitutes gross income from sources within the United States of any nonresident alien individual, foreign partnership, or foreign corporation shall deduct and withhold from that income a tax equal to 23 percent thereof.
`(b) Exception- No tax shall be required to be deducted from interest on portfolio debt investments.
`(c) Treaty Countries- In the case of payments to nonresident alien individuals, foreign partnerships, or foreign corporations that have a residence in (or the nationality of a country) that has entered into a tax treaty with the United States, then the rate of withholding tax prescribed by the treaty shall govern.'.