DesideriScuri
Posts: 12225
Joined: 1/18/2012
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ORIGINAL: vincentML
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ORIGINAL: DesideriScuri
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ORIGINAL: vincentML
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ORIGINAL: DesideriScuri
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ORIGINAL: vincentML
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Don't be obtuse, Vincent. It's the same fucking idea.
What you're bitching about isn't just "earnings stripping" (something I'd bet we'd agree about), but US corporations not bringing profits made oversease (which they paid taxes on overseas) back to the US to get taxed again. While Corporations can deduct the amount of taxes paid overseas from their US tax bill on repatriated money, why would a company want to do that? Drop the Corporate tax rate and the tax bill for repatriated money is greatly reduced (especially after foreign income tax credits).
Why do you think the US should get tax money from profits made outside the US, anyway?
The answer is really quite simple. The United States tax code is based upon RESIDENCY. If you reside here and enjoy the liberties available to you, you pay taxes.
What do you mean by "reside here?"
If you mean "have their world HQ's here," you'll have to be prepared for a large exodus of companies' world HQ's. Clear incentive for them to do so.
If you mean "have a US presence of any sort," best of luck collecting taxes on corporations like Toyota on sales outside the US.
Really? Have you just awakened to the fact that people who live here are required to pay taxes for the privilege? Breaking news: residency taxation has been a reality for more than one hundred years. Where is the mass exodus?
Don't be a fucktard. It's a valid question.
Every company pays taxes to the US on their US profits. You know that. You know I know that. But, that wasn't the question, now was it?
You're floundering, DS. You very well know that a corporation registered in the United States is required to pay federal taxes on their income wherever that income is earned in the world, less credits for foreign taxes paid. So, given that, wtf are you pratting on about?
I'm not floundering at all, Vincent. I asked a perfectly legitimate question, and your 'given' above isn't really correct.
So, to escape the excess taxation (excessive in their viewpoint, anyway), corporations can keep money outside the US, in foreign subsidiaries. That money can't be used in the US without having to pay taxes on it (US tax rate less any credits for taxes paid to the country where it was earned).
Your solution gives an incentive to corporations to register outside the US. What happens after that? At that point, the only taxes owed to the Feds would be on income in the US, regardless of how much a (now foreign) corporation invests foreign-earned money in the US.
Read a CBO article from the late 00's, that stated the US credits corporations foreign-paid taxes and caps tax liabilities to what would be paid in the US. So, if a corporation was taxed at a higher rate than it would have been by the US, the US tax credit is for more than what it would have owed to the US. Those "excess" tax credits can be applied to any other tax liabilities in the US. I would have no problem agreeing to getting rid of that.
What is the benefit of being registered in the US, rather than being registered in a foreign country with a more favorable tax structure?
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What I support:
- A Conservative interpretation of the US Constitution
- Personal Responsibility
- Help for the truly needy
- Limited Government
- Consumption Tax (non-profit charities and food exempt)
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RE: War on the Poor? - 
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