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Corporations seek tax break to bring profits home

Discussion in 'Political Discussion' started by Gainzo, Jun 20, 2011.

  1. Gainzo

    Gainzo In the Starting Line-Up

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    #11 Jersey

    On one hand this will at least bring back money we would never see. On the other hand they tried this before and all it did was pad shareholder value and Corporations bottom lines.

    Corporations seek tax break to bring profits home - The Boston Globe
     
  2. mcgraw_wv

    mcgraw_wv In the Starting Line-Up

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    I see no problem with this... They aren't breaking any laws by not bringing back money, and they aren't "hiding it" overseas illegally, they simply aren't bringing it back, if the sheer fact of bringing it back costs money.

    Would you transfer money from Account A to Account B if it was going to cost you a 35% fee to do so?
     
    Last edited: Jun 20, 2011
  3. Gainzo

    Gainzo In the Starting Line-Up

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    #11 Jersey

    My problem with this is that Corporations will get a 5.25% tax rate for a year. All that will do is make Wall Street more money. Unless you have a lot of stocks this will do nothing for the economy.

    You know Republicans talk about Main Street and Democrats talk about the middle class? Neither group will benefit from this.
     
  4. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    Wall st makes money off charging fees for trading shares and fee for acq/mergers. Profits coming back to the US doesn't make Wall st any more money.

    Lowering corp taxes (and expensive regulations) makes America a more attractive place to do business which creates jobs for Americans. Being hostile to business and demonizing businesses as evil causes people to take their business and jobs elsewhere.
     
  5. JackBauer

    JackBauer Pro Bowl Player

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    LOL, yeah. America's hostile business climate surely explains why our corporations are doing so poorly, doesn't it.
     
  6. mcgraw_wv

    mcgraw_wv In the Starting Line-Up

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    Just overall, nothing about who benifits or who prospers...

    If you have 1,000.00 overseas, and you would lose 350.00 simply bringing it home, would you?

    So this isn't a GOP vs DEM debate, or corporate vs middle class, this is common sense. No one is going to volunteer to hand over 35% without anything in return.
     
  7. Gainzo

    Gainzo In the Starting Line-Up

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    #11 Jersey

    You do know that America is still the biggest economy in the World right? Deregulation and lower taxes will magically create jobs?

    Do you know why American Corporations outsource? It has nothing to do with taxes it has everything to do with paying a decent wage to American workers.

    Germany, Australia and plenty of other Country's do just fine when paying their workers a decent wage.
     
  8. Real World

    Real World Moderator Staff Member

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    5%? Sorry, but keep your money overseas. There is a reason why this money is overseas to begin with, and that is because it was cheaper for them to collect it there. Sheesh, I pay more in MA sales tax than that 5%. We could really use a revamp in this department. Lower rates, lessen the breaks, rip up the free trade agreements and start over.
     
  9. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    No it explains why they aren't hiring workers in the country see the 15% unemployed (the 9.1% + the 6%+ whose benefits have run out.

    But Obama has gotten 70+ rounds of golf in.

    Michelle in a recent campaign trip:

     
  10. patsfan13

    patsfan13 Hall of Fame Poster PatsFans.com Supporter

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    China will be passing us very soon now.


    You do know 15%+ of Americans are unemployed don't you?

    You OK with that?
     
  11. PatsFanInVa

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    I just quoted this article over in the other thread on a "tax cut everyone can like" or whatever I called it.

    The true believers are out in force. To me this is a prime example of where you could grant part of what they want (but not down to 5%,) but condition it on only those moneys earmarked for payroll. I could also say "or capital improvements using U.S. manufactured equipment" or somesuch.... but no reflagging equipment made elsewhere just because the corporate HQ is in the US.

    By the way this assinine argument that they should just not pay it because they don't have to?

    Yeah, just close that loophole. Jesus christ.

    PFnV
     
  12. chicowalker

    chicowalker Pro Bowl Player

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    Here's my question re. the fairness of our tax system w/regard to this issue: if an individual earns money oversees, can he keep that money in an account overseas or is he supposed to pay US taxes on the income? (in other words, are corporations and individual treated the same in this regard? I suspect they're not.)
     
  13. wistahpatsfan

    wistahpatsfan Pro Bowl Player

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    #75 Jersey

    No, but that's because corporations don't enjoy First Ammendment protections like people ...oh wait...never mind...:cool:
     
  14. IcyPatriot

    IcyPatriot ------------- PatsFans.com Supporter

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    #87 Jersey


    So what would you do that would be better?

    What would you do to get them to invest that money here?

    I still say tax breaks for corporations who manufacture here based on # of added employees employed here.

    That by the way was an Obama campaign promise - help for companies who produce here.
     
    Last edited: Jun 20, 2011
  15. wistahpatsfan

    wistahpatsfan Pro Bowl Player

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    #75 Jersey

    Appeal to their sense of patriotism?

    [​IMG]
     
  16. BSR

    BSR In the Starting Line-Up

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    No they can't but neither can a U.S. Corporation. Both you and a U.S. corporation can create a foreign corporation that can then be used to earn the income and hold the money.
     
  17. PatsFanInVa

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    Big difference between an actual individual and a corporation: a "multinational individual" may owe back taxes on everything he ever made abroad, but that individual, in most cases, will have a reason to want to live back in the U.S. An individual can get homesick. An individual can have a relative in distress or a wife back home. An individual can miss his season tix at foxboro or some specific gala or regatta or derby that happens in the U.S., or his old family home. An individual can want his children to grow up in America with American neighbors. Now granted those ties are different for different people, and I dare say for different socioeconomic classes. But the thing is, a real live person can't be in two places at one time, and has personal reasons to consider himself American.

    A Corporation has no loyalty other than to profits, and a Corporation can be many places at one time. So if the taxes are owed at the U.S., it's not like you as a person involved in Apple, for instance, can never live in the U.S. again until your taxes are paid. You can never leave the U.S., for that matter, and "your" money can never enter the U.S., and it's no-harm, no-foul.

    The "multinational individual" is a very different case from the "multinational corporation."

    Likewise, this appeal for a "tax holiday" looks like multinationals with titular U.S. headquarters saying "you know what? In theory the tax is owed in the U.S. Hell, that's what I'll tell this other country anyway. Now, in practice, I have this fielder's choice arrangement where I pay if and when I feel like it. If I move the money over and you've got me dead to rights, then I guess I'll pay. Otherwise, I'll continue to invest the money over in this other country, do it all tax free, and just never move the money from the offshore account to the U.S. account, to evade the taxes I owe."

    Hmmm. If I owe taxes in the U.S., I'm pretty sure they can attach my assets. Of course you don't owe the money until the profits are repatriated, but over in the other country where this money is made, the idea is that it's not taxed (or not fully taxed) because that money will be taxed over here in the U.S.

    The result seems to be a great big "screw you" to all governments on the part of the corporation in question. Harumph.

    PFnV
     
  18. BSR

    BSR In the Starting Line-Up

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    I don't think that is correct PFIV. I believe that a U.S. corporation, like an individual, needs to pay tax on its income worldwide. Those taxes may or may not be deductible against the foreign countries taxes but that is dependent on the tax treaty between the U.S. and that foreign government. Where, I believe, tax is sheltered is when a foreign subsidiary is created to earn the profits but that is an entity domiciled in that country and thus needs to pay that country's tax.
     
  19. PatsFanInVa

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    BSR, makes sense until you read that these corporations are proposing a "repatriation holiday".

    They're floating this idea that they'll pay their taxes, if they get the right deal. Otherwise, they won't.

    I guess there exists the possibility that their intent is to pay taxes on them in the host country unless they get their tax break. I think I remember reading that we're one of the few countries that doesn't demand profits be repatriated.

    The smoking gun is that they're saying, in effect, "if X, then I pay my taxes."

    See I don't get to do that.

    PFnV
     
  20. mcgraw_wv

    mcgraw_wv In the Starting Line-Up

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    This past year, I owed 4500 in taxes to the federal government. I mention this becuase just recently I had to call the IRS. Last year was my first full year running my business without my partner which I bought out the previous year. We previously were filed as a corporation, however since I am now a sole proprietor all the income of the business flows into my personal income for taxes reasons.

    Well I called the IRS to get clarification on some employee withholding notice I received and the agent informed me that I needed to file a Corporate return, and they are waiting on it.

    I called my CPA, and informed them of the information told to me, so were re-filing and now I get 7500 back!

    I know this will most likely piss some of you off, but as an individual, I owed, as a corporate, I get money back! Hey if you can't beat em, Join em! ;)
     

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