Buy Blackberry and move Apple headquarter to Canada where they have lower corporate taxes. If the government won't change tax laws to be able to compete with other countries, Billions of dollars in savings are billions of reasons to move out of the U.S.
The U.S. shouldn't benefit on income earned overseas. That's just crazy proposing this. No other country on earth does this. As it is, we have the highest corporate tax rate in the world. How would this even create jobs? All this does is provide more money for our government, who's spending is out of control.
"All this does is provide more money for our government, who's spending is out of control." Anyone who starts with that argument has already given up on solving anything. Don't give the government money, because they will just spend it! They won't spend less because you give them less - they will just keep borrowing. Perhaps if the Republicans stopped protecting the rich and promoting useless wars there would be a bit more money in the coffers, but hey they are all about "God and family" so you gotta vote for them.
No other country taxes its corporations (or citizens) on income earned outside that country. So the deferred 35% US tax on overseas income is nothing more than a strong incentive for US companies to avoid investment in the US. Which is terrible. Obama's "solution" is to remove the ability to defer the tax, while reducing the rate to teen digits. The currently competing bill reduces this to around 6%, essentially reversing the incentive to encourage US companies that are profitable overseas to reinvest their profits in US investment.
If you are already paying a stiff tax in the country of origin, even a 6% tax on top of what has already been paid is pretty stiff. I really don't think people understand just how frustrating it is for corporations as Washington tries to imply companies are avoiding taxes which they aren't. Taxes have already been paid on earnings.
However, keep in mind that South Korea only charges Samsung an effective tax rate of <5%. When Samsung sells a Note 4 in the US, those profits are essentially not taxed by South Korea. When Apple sells an iPhone 6 in Korea, it pays Korean income tax (higher than Samsung's) and then is expected to pay the difference up to 35% to the US.
Yep. If more people truly understood what was going on here I think there would be far stronger support for corporations and their struggle against this nonsense. Basically it is taxing people with no representation in the US government.
A huge windfall of corporate holdings tax would certainly make it more attractive to start a new war, if 2016 ushered in a war-hawk president.
Come on now oBama has more crap going on than the guy before him. We had Libya, Iraq again, the failure in Afghanistan, the secret on going war in Somolia, the secret war agains Boko Haram and the list goes on. The failure of the popular and very leftist media to report these as war efforts on the presidents part doesn't make him any less of a war monger. Beyond that the tilt towards Iran in the Middle East is absolutely stupid and can be likened to hooking up with Hitler in 1940.
So would the next president be considered a war hawk if he has to finish off some of the crap oBama started. By the way I use the word crow in place of war on purpose here because it is fitting for something not executed well.
Also noteworthy that Apple has set aside most the money to pay (apparently) the full 35% taxes on its cash, so if that % were reduced in half it wouldn't even need to restate how much cash it has, because it has already accounted for payment.
Well they have made an estimate, I really doubt that they can zero in on the exact number.
What Tim Cook actually asked for was a comprehensive simplification of the US tax code to make it fair, even if it would result in higher taxes for Apple. What's being proposed by Congress and the President is a short term bandaid to supply some money for the highway fund before it RUNS OUT this summer.
It is one big bank account. The request by Tim is rational as the tax code is far to complex for everybody corporate and non corporate alike. However the problem here is that by asking for a simplification Tim gives the government an opening to grab far more, thus the grab for money repatriated or not. There is certianly some youthful and thus delusional thinking here about the way government, especially government run by an uninformed democrat works.
Meanwhile, China is rapidly building infrastructure that will enable growth and prosperity, while the US is inventing new controversy about whether bridges should be allowed to fall down and whether vaccines should be required in public schools.
It is shocking that any of these would even be news.
Another ten years of Fox News and the USA will be a dust bowl with a flammable water table ringed by coastal cities that generate all the remaining economic activity.
Now you are being a complete ass. The people at Fox News aren't smart enough to generate the artificial controversies about vaccines and bridges. In fact I see more leftist media supporting oBamas lack of leadership on these issues than taking him to task for things like slippage in public health.
"All this does is provide more money for our government, who's spending is out of control." Anyone who starts with that argument has already given up on solving anything. Don't give the government money, because they will just spend it! They won't spend less because you give them less - they will just keep borrowing. Perhaps if the Republicans stopped protecting the rich and promoting useless wars there would be a bit more money in the coffers, but hey they are all about "God and family" so you gotta vote for them.
I think you've been brainwashed by MSNBC. Obama has outspent the last 5 presidents combined.
No, I'm Australian so we get news outside the biased hate filled rubbish the US describes as news, but really is just misinformed propoganda the rich (e.g. Murdoch - formerly Australian, but not any more thank God) show the poor to convince them the be afraid rather than pissed off.
This is the first reasonable proposal I've seen to address US corporations sheltering profits from taxes overseas. Unfortunately Obama waited until achieving lame duck status with both houses of Congress under Republican control to do so, making this a non-starter.
No, I'm Australian so we get news outside the biased hate filled rubbish the US describes as news, but really is just misinformed propoganda the rich (e.g. Murdoch - formerly Australian, but not any more thank God) show the poor to convince them the be afraid rather than pissed off.
Unfortunately most of the news channels here are biased. I rarely watch the news. I stick to reading articles online.
This is the first reasonable proposal I've seen to address US corporations sheltering profits from taxes overseas. Unfortunately Obama waited until achieving lame duck status with both houses of Congress under Republican control to do so, making this a non-starter.
I don't understand your thinking. How is taxing income on an overseas corporation with U.S. taxes reasonable? No other country on earth does that.
I don't understand your thinking. How is taxing income on an overseas corporation with U.S. taxes reasonable? No other country on earth does that.
Because corporations are being offered ridiculously low tax rates in order to lure them to countries that want their business. There's no reason a multi-billion dollar company should be paying a lower tax rate than citizens who are struggling just to get by. There needs to be an international reversal of this calamitous trend to bring sanity back to corporate tax collection.
Corporate tax shelters are a key reason behind US and global wealth redistribution to the top 1%.
Because corporations are being offered ridiculously low tax rates in order to lure them to countries that want their business. There's no reason a multi-billion dollar company should be paying a lower tax rate than citizens who are struggling just to get by. There needs to be an international reversal of this calamitous trend to bring sanity back to corporate tax collection.
So...when the corporations go away, who employs the people?
So...when the corporations go away, who employs the people?
Corporations employ people so long as they are needed to run the business. Their tax liability has no impact on this. If Apple (or any other company) were given a huge tax break to bring their offshore funds back into the US do you honestly think they would spend it to hire more people? Apple employs precisely the number of people they feel necessary to run their business. Any tax haven would simply funnel the money into stock buybacks and executive bonuses.
This is not a novel idea. It's been done before and the results have been exactly as I just described.
Because corporations are being offered ridiculously low tax rates in order to lure them to countries that want their business. There's no reason a multi-billion dollar company should be paying a lower tax rate than citizens who are struggling just to get by. There needs to be an international reversal of this calamitous trend to bring sanity back to corporate tax collection.
Corporate tax shelters are a key reason behind US and global wealth redistribution to the top 1%.
Those corporations like Apple are creating jobs and paying taxes in overseas countries. Why should Apple have to pay U.S. taxes on profits it made in those countries? That makes no sense.
So...when the corporations go away, who employs the people?
You'd be silly to think that corporations will go away because, dear me, they had to pay tax. Where there's a profit to be made, it will be made. Don't kid yourself.
Those corporations like Apple are creating jobs and paying taxes in overseas countries. Why should Apple have to pay U.S. taxes on profits it made in those countries? That makes no sense.
They are paying ridiculously low tax rates in countries that they would otherwise have little or no presence in, like Ireland. If the laws were changed so they had to pay US taxes, then they would move their fake operations out of countries like Ireland and back into the US to avoid the pointless double taxation you refer to.
It's ludicrous to suggest Apple would instead merely move entirely out of the US. Lotsa luck finding the same caliber of talent willing to live elsewhere.
The U.S. shouldn't benefit on income earned overseas. That's just crazy proposing this. No other country on earth does this. As it is, we have the highest corporate tax rate in the world. How would this even create jobs? All this does is provide more money for our government, who's spending is out of control.
Highest tax rate in the world? HAHAHA! You actually believe companies pay this? Are you freaking kidding me?
Obama's plan sounds great. All that money sitting offshore is not working for anyone. A public works plan would bring employment to hundreds of thousands of workers and improve the quality of life for everyone.
The curent reality in Washington is significantly different, a "public works project" would create a few highly paid government managerial jobs and very few hands on jobs. All one has to do is take a snap shot of the population in the Washington DC area to see how true this is. The problem with the government collecting more taxes is that nothing changes in Washington and very little of our money ends up being used constructively.
Beyond that public works programs are often destructive of the natural environment. The last thing we need to do is to develop more natural spaces which turns those spaces into unnatural theme parks.
Some of the other projects supported recently such as high speed rail just boggle ones mind with their stupidity. Inter city travel isn't a problem in this country, intra city travel is. Sometimes I just see to much effort put into grandiose plans that apparently are designed to elicit public support but have no real payoff for the public.
The increasing wealth divide in Western countries is not only bad for the poor, it's bad for the rich too.
It isn't bad for the rich. Beyond that massive rich people are the direct result of having massive populations into which to sell your product. If that product is built with few hands and has massive adoption massive profits follow. IPhone and Apple are a perfect example of this happening in real time.
The wealth and power of corporations is totally out of hand.
Not at all. It is people choosing to follow the herd that makes successes like iPhone happen. Apples wealth is a direct result of them making something you want to buy that you really don't need. The same thing applies to many other technologies out there. You are directly responsible for where your wealth goes.
Take for example furniture (just to get away from the focus on technology) when was the last time you purchased a piece of furniture with a focus on where it was made? How about by whom it was made, a local builder for example. In most cases people don't focus on the small businessman trying to make a living instead going to Ikea or another massive company for their furniture. Massive company XYZ benefits from mass production and thus low prices and high profits which feeds upon itself. Most people seem to value low prices vs craftsmanship and profits going to a small business. Sad really, though at times I can understand that some furniture just needs to be cheap. However the rush to mass production has whipped out much of the professional craftsmanship that was once common in this country and in this regard you can blame no one but the consumer.
I bring up furniture only because I have made some or refinished pieces for myself over the years. Doing so is a hobby of sorts in this case. It isn't something one can justify on economic grounds for ones pocket book. However it does keep money out of the hands of the mass producers. I've even thought about turning a hobby into a business but the obsticals inplace to do so are massive from a legal perspective and then you have to deal with a tiny customer space willing to pay for something that isn't mass produced. What I'm trying to say here is that massive corporations are the result of consumers flocking to the low cost and often low quality product these companies offer. Or rather it is our own damn fault.
$921 billion on Medicare, $859 billion on Social Security, $310 billion on welfare, $249 billion on pensions.
None of those are enumerated in the Constitution. Defense is, and that's only $595 billion. Is there waste there? Certainly! But people seem to be sticking to this Bush-era concept about defense being the budget hog, and it's not even close anymore.
Did we not just pass a budget with defense almost 1 trillion? Thinking so.
We are trillions in debt from useless wars and tax cuts for the super rich. Time to pay up like the rest of us.
Comments
Meanwhile, Government Electric has a negative tax rate, thanks to the cozy relationship they enjoy with the White House.
People claim capitalism is a failure; I say to them that they've never lived under true capitalism. Crony capitalism is not capitalism.
General Dynamics competitor Boeing paid a tax rate of -1% over the same period. Here is another one. Time Warner paid 3.9% while Comcast paid 24%.
The U.S. shouldn't benefit on income earned overseas. That's just crazy proposing this. No other country on earth does this. As it is, we have the highest corporate tax rate in the world. How would this even create jobs? All this does is provide more money for our government, who's spending is out of control.
"All this does is provide more money for our government, who's spending is out of control." Anyone who starts with that argument has already given up on solving anything. Don't give the government money, because they will just spend it! They won't spend less because you give them less - they will just keep borrowing. Perhaps if the Republicans stopped protecting the rich and promoting useless wars there would be a bit more money in the coffers, but hey they are all about "God and family" so you gotta vote for them.
So would the next president be considered a war hawk if he has to finish off some of the crap oBama started. By the way I use the word crow in place of war on purpose here because it is fitting for something not executed well. Well they have made an estimate, I really doubt that they can zero in on the exact number. It is one big bank account. The request by Tim is rational as the tax code is far to complex for everybody corporate and non corporate alike. However the problem here is that by asking for a simplification Tim gives the government an opening to grab far more, thus the grab for money repatriated or not. There is certianly some youthful and thus delusional thinking here about the way government, especially government run by an uninformed democrat works. It is shocking that any of these would even be news. Now you are being a complete ass. The people at Fox News aren't smart enough to generate the artificial controversies about vaccines and bridges. In fact I see more leftist media supporting oBamas lack of leadership on these issues than taking him to task for things like slippage in public health.
"All this does is provide more money for our government, who's spending is out of control." Anyone who starts with that argument has already given up on solving anything. Don't give the government money, because they will just spend it! They won't spend less because you give them less - they will just keep borrowing. Perhaps if the Republicans stopped protecting the rich and promoting useless wars there would be a bit more money in the coffers, but hey they are all about "God and family" so you gotta vote for them.
I think you've been brainwashed by MSNBC. Obama has outspent the last 5 presidents combined.
I think you've been brainwashed by MSNBC.
No, I'm Australian so we get news outside the biased hate filled rubbish the US describes as news, but really is just misinformed propoganda the rich (e.g. Murdoch - formerly Australian, but not any more thank God) show the poor to convince them the be afraid rather than pissed off.
No, I'm Australian so we get news outside the biased hate filled rubbish the US describes as news, but really is just misinformed propoganda the rich (e.g. Murdoch - formerly Australian, but not any more thank God) show the poor to convince them the be afraid rather than pissed off.
Unfortunately most of the news channels here are biased. I rarely watch the news. I stick to reading articles online.
This is the first reasonable proposal I've seen to address US corporations sheltering profits from taxes overseas. Unfortunately Obama waited until achieving lame duck status with both houses of Congress under Republican control to do so, making this a non-starter.
I don't understand your thinking. How is taxing income on an overseas corporation with U.S. taxes reasonable? No other country on earth does that.
I don't understand your thinking. How is taxing income on an overseas corporation with U.S. taxes reasonable? No other country on earth does that.
Because corporations are being offered ridiculously low tax rates in order to lure them to countries that want their business. There's no reason a multi-billion dollar company should be paying a lower tax rate than citizens who are struggling just to get by. There needs to be an international reversal of this calamitous trend to bring sanity back to corporate tax collection.
Corporate tax shelters are a key reason behind US and global wealth redistribution to the top 1%.
Because corporations are being offered ridiculously low tax rates in order to lure them to countries that want their business. There's no reason a multi-billion dollar company should be paying a lower tax rate than citizens who are struggling just to get by. There needs to be an international reversal of this calamitous trend to bring sanity back to corporate tax collection.
So...when the corporations go away, who employs the people?
So...when the corporations go away, who employs the people?
Corporations employ people so long as they are needed to run the business. Their tax liability has no impact on this. If Apple (or any other company) were given a huge tax break to bring their offshore funds back into the US do you honestly think they would spend it to hire more people? Apple employs precisely the number of people they feel necessary to run their business. Any tax haven would simply funnel the money into stock buybacks and executive bonuses.
This is not a novel idea. It's been done before and the results have been exactly as I just described.
Because corporations are being offered ridiculously low tax rates in order to lure them to countries that want their business. There's no reason a multi-billion dollar company should be paying a lower tax rate than citizens who are struggling just to get by. There needs to be an international reversal of this calamitous trend to bring sanity back to corporate tax collection.
Corporate tax shelters are a key reason behind US and global wealth redistribution to the top 1%.
Those corporations like Apple are creating jobs and paying taxes in overseas countries. Why should Apple have to pay U.S. taxes on profits it made in those countries? That makes no sense.
You'd be silly to think that corporations will go away because, dear me, they had to pay tax. Where there's a profit to be made, it will be made. Don't kid yourself.
Those corporations like Apple are creating jobs and paying taxes in overseas countries. Why should Apple have to pay U.S. taxes on profits it made in those countries? That makes no sense.
They are paying ridiculously low tax rates in countries that they would otherwise have little or no presence in, like Ireland. If the laws were changed so they had to pay US taxes, then they would move their fake operations out of countries like Ireland and back into the US to avoid the pointless double taxation you refer to.
It's ludicrous to suggest Apple would instead merely move entirely out of the US. Lotsa luck finding the same caliber of talent willing to live elsewhere.
The U.S. shouldn't benefit on income earned overseas. That's just crazy proposing this. No other country on earth does this. As it is, we have the highest corporate tax rate in the world. How would this even create jobs? All this does is provide more money for our government, who's spending is out of control.
Highest tax rate in the world? HAHAHA! You actually believe companies pay this? Are you freaking kidding me?
Beyond that public works programs are often destructive of the natural environment. The last thing we need to do is to develop more natural spaces which turns those spaces into unnatural theme parks.
Some of the other projects supported recently such as high speed rail just boggle ones mind with their stupidity. Inter city travel isn't a problem in this country, intra city travel is. Sometimes I just see to much effort put into grandiose plans that apparently are designed to elicit public support but have no real payoff for the public. It isn't bad for the rich. Beyond that massive rich people are the direct result of having massive populations into which to sell your product. If that product is built with few hands and has massive adoption massive profits follow. IPhone and Apple are a perfect example of this happening in real time. Not at all. It is people choosing to follow the herd that makes successes like iPhone happen. Apples wealth is a direct result of them making something you want to buy that you really don't need. The same thing applies to many other technologies out there. You are directly responsible for where your wealth goes.
Take for example furniture (just to get away from the focus on technology) when was the last time you purchased a piece of furniture with a focus on where it was made? How about by whom it was made, a local builder for example. In most cases people don't focus on the small businessman trying to make a living instead going to Ikea or another massive company for their furniture. Massive company XYZ benefits from mass production and thus low prices and high profits which feeds upon itself. Most people seem to value low prices vs craftsmanship and profits going to a small business. Sad really, though at times I can understand that some furniture just needs to be cheap. However the rush to mass production has whipped out much of the professional craftsmanship that was once common in this country and in this regard you can blame no one but the consumer.
I bring up furniture only because I have made some or refinished pieces for myself over the years. Doing so is a hobby of sorts in this case. It isn't something one can justify on economic grounds for ones pocket book. However it does keep money out of the hands of the mass producers. I've even thought about turning a hobby into a business but the obsticals inplace to do so are massive from a legal perspective and then you have to deal with a tiny customer space willing to pay for something that isn't mass produced. What I'm trying to say here is that massive corporations are the result of consumers flocking to the low cost and often low quality product these companies offer. Or rather it is our own damn fault.
Highest tax rate in the world? HAHAHA! You actually believe companies pay this? Are you freaking kidding me?
Did you read my other post? Some companies do pay a lot. Do a little research.
Education time: http://usdebtclock.org/
$921 billion on Medicare, $859 billion on Social Security, $310 billion on welfare, $249 billion on pensions.
None of those are enumerated in the Constitution. Defense is, and that's only $595 billion. Is there waste there? Certainly! But people seem to be sticking to this Bush-era concept about defense being the budget hog, and it's not even close anymore.
Did we not just pass a budget with defense almost 1 trillion? Thinking so.
We are trillions in debt from useless wars and tax cuts for the super rich. Time to pay up like the rest of us.