[4Freedom]

"...federal authorities by the early 1990s were estimating that the "revenue costs" of Section 936 to the U.S. Treasury were reaching $4 billion plus a year."

Time to close all of these Certified Foreign Corporation, tax scam, loopholes and offer all of these pharmaceutical companies tax incentives to relocate their operations back to the poorest areas of the mainland United States.

[4Freedom]

'PING!'

[ikka]

By contrast, if a mainland company established manufacturing operations in Ireland, Singapore, Malaysia, or anyplace else in the world outside the United States and its possessions, the income generated could not be brought home tax-free but would be subject to a 35 percent corporate tax rate if repatriated to the mainland. Paying the tax could only be avoided (deferred) if the income generated from the controlled foreign corporation was kept offshore.

Just a note... last year (maybe the last few years), there was a tax amnesty in place - companies could repatriate their offshore dollars at only 5% tax rate. Companies like Dell and others having large overseas earnings, brought home BILLIONS of dollars.

[Ebenezer]

ping

I agree Section 936 is a liability. If Puerto Rico were ever to become a state, this cozy arrangement would have to go.