So, Pfizer has dropped their tax dodge scam. It was clear what the shame deal was all about but that it was actually stopped honestly surprised me. Here are a couple of links with different perspectives
http://www.cnbc.com/2016/04/06/schiff-obamas-tax-inversion-rules-will-backfire.html
http://www.theguardian.com/business/2016/apr/06/pfizer-allergan-merger-collapse-reveals-real-motivation
I'm not sure I totally understood the Schiff comment. If American companies are buying foreign companies to escape America taxation, why would a foreign company buy an American company and pay high American taxes? Meh, it's the same ol same ol, people with money don't want to pay any fucking taxes. They endlessly cite our corporate tax rate, and negate to ever mention how many loopholes there are. Then we have this territorial plan that Lou talks about which will accomplish one thing and one thing only, it will allow for a ton of money to come back to America to be promptly distributed up the food chain rather than down. It wont' increase investment. It won't improve our economy and it won't change anything. Nonetheless, I support it. Then I can hear what empty argument is brought up next for why we need to end all corporate taxes.
Max.
ReplyDeleteHow do you address this issue.
Foreign companies bring money into the US and invest in building the infrastructure buying US businesses in the US with foreign profits which are not taxed under US law. We have a brand new toll lane built by a foreign company and they collect the tolls. They paid no tax on the money from overseas to build the toll lane.
US companies cannot bring foreign profits into the US without paying a 35% tax.
How is that competitive?
p.s. If a business brings profits back to the US and distributes it to shareholders, 401K, IRA investors (the little people) as well as investors, and they spend (now or in retirement) the money, how is that bad?
How is it good that Microsoft bought Skype a foreign company with untaxed overseas profits? How is that good for America?
How is it good that companies would leave 2 trillion overseas to be invested overseas than on the US? Even if they invested 1/4 of the money in growth in the US, isn't it better than nothing?
If the company distributes the profits in dividends, the government taxes the dividends, how is that bad?
The evil corporation will never lose the tax game Max. The always pass the tax to the consumer. Government acts, business reacts.
"The evil corporation will never lose the tax game Max. The always pass the tax to the consumer. Government acts, business reacts."
DeleteYeah, you are committed to that. Like I said Lou, I support the plan, but refuse to drink the kool aide believing it's about competition and that it's going to benefit American workers or consumers. It's just fucking greed. Your belief that every single last stinking penny of tax is passed on to the consumer is something I continue to disagree with, but your point about corporations never losing the tax game is 100% true. Through lobbying efforts, and tax dodge scams, they avoid plenty of tax. For a CEO making tens of millions, does he really give a damn about whether that money can come back? It's not affecting him. So yes, corporations will always find ways to maintain the ridiculous status of being a citizen without being held to any rules the rest of us go through.
Your belief that every single last stinking penny of tax is passed on to the consumer is something I continue to disagree with.
DeleteI am living proof as I passed every dime in Federal/state/local taxes to the companies I do business with even today.
oreign companies bring money into the US and invest in building the infrastructure buying US businesses in the US with foreign profits which are not taxed under US law. We have a brand new toll lane built by a foreign company and they collect the tolls. They paid no tax on the money from overseas to build the toll lane.
US companies cannot bring foreign profits into the US without paying a 35% tax.
How is that competitive?
Doesn't our current tax policy favor foreign investment over US investment?
If our corporations are really so bad, why is it that Bama refuses to let them go?
If a business brings profits back to the US and distributes it to shareholders, 401K, IRA investors (the little people) as well as investors, and they spend (now or in retirement) the money, how is that bad?
How is it good that Microsoft bought Skype a foreign company with untaxed overseas profits? How is that good for America?
How is it good that companies would leave 2 trillion overseas to be invested overseas than on the US? Even if they invested 1/4 of the money in growth in the US, isn't it better than nothing?
If the company distributes the profits in dividends, the government taxes the dividends, how is that bad?