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MrRodgers -> RE: $21 trillion hidden in offshore accounts (7/27/2012 5:55:23 AM)
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quote:
ORIGINAL: tj444
As I understand it, one of the big problems is that corps that have international holdings are majorly taxed on any money they earn outside the US if they bring that money into the US.. so it is simply kept outside the US.. Imo, if the money is earned outside the US then the US should have no right to tax it (especially since it would have been taxed in the country that money was made).. But then I come from a country that does not tax based on citizenship as the US greedily does.. so I believe taxing based solely on residence is the only right way for a country to tax.. The US way of taxing is a major reason why I would never become an American citizen...
If the US changed that and instead of grabbing 35% of corp money (brought back to the US) and took say 10%, then imo you would see a lot of that offshore corp profits come into the US and create more jobs here.. and some corps have stated that publicly in various articles I have read, they want to bring at least some of that money and create US jobs but it makes no financial sense to do so.. So the US essentially shoots itself in its foot..
As far as people with offshore accounts, where do they live? If they live outside the US, then again, imo that money should not be taxed by the US.. People with enough money can buy a second citizenship and then renounce their American citizenship, which they are doing in greater numbers. In 2008, only about 200 Americans gave up their citizenship, in the last year that number has jumped to over 1,800.. Its a global world, the US has competition..
I know nothing of how the UK or Australia taxes so my opinion is only about the US tax system which tends to be draconian imo.. as this article of IRS revising its rules shows..
"The Internal Revenue Service today issued new rules granting a penalty break to some U.S. expats and dual citizens who have been unfairly caught up in the harsh U.S. crackdown on secret foreign bank accounts and offshore tax evasion. The relief will help middle class folks who have been living for years in high tax foreign countries such as the United Kingdom, and particularly the estimated one million Americans living in Canada."
JMO
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The US has the 3rd lowest...yes, lowest overall tax regime of the entire western, industrialized world.
As for jobs, taxes have no influence on job creation. Jobs are created where the cost to do so is least, i.e., China, Vietnam etc. where labor can be had for a song.
The result is that the fortune 500 for sure maybe the '1000' has not created a single net new job in the US in over 50 years. Over those 50 years we have seen an approx. 2/3 reduction in business and corporate taxes.
Furthermore, the west taxes labor at 2 to 2 1/2 times that of capital which also compounds the borrowing necessary to pay for bailouts, guns and corporate welfare.
The US is currently enjoying the lowest tax regime in 60 years while 'enjoying' the largest spending in 60 years.
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