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BillBrasky Memorial Political Chat Thread

"NYT: How Delaware thrives as a Corporate Tax Haven"
https://www.nytimes.com/2012/07/01/business/how-delaware-thrives-as-a-corporate-tax-haven.html#:~:text=Delaware%20today%20regularly%20tops%20lists,in%20Delaware%2C%20where%20they%20are
"...Officials in other states complain that Delaware’s cozy corporate setup robs their states of billions of tax dollars. Officials in the Cayman Islands, a favorite Caribbean haunt of secretive hedge funds, say Delaware is today playing faster and looser than the offshore jurisdictions that raise hackles in Washington.

And international bodies, most recently the World Bank, are increasingly pointing fingers at the state..."

Hey ChrisL, maybe you should tell the people of Delaware that there state isnt a tax shelter, because they seem to believe it is:
https://www.wsj.com/articles/delaware-backs-overhaul-of-shell-company-rules-1529946813
 
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I can keep going, should I keep going? If you're going to obfuscate and bullshit, best not to do it about a fact thats so easily verifiable.
 
"NYT: How Delaware thrives as a Corporate Tax Haven"
http://How Delaware Thrives as a Corporate Tax Haven https://nyti.ms/QD9kUW
"...Officials in other states complain that Delaware’s cozy corporate setup robs their states of billions of tax dollars. Officials in the Cayman Islands, a favorite Caribbean haunt of secretive hedge funds, say Delaware is today playing faster and looser than the offshore jurisdictions that raise hackles in Washington.

And international bodies, most recently the World Bank, are increasingly pointing fingers at the state..."

Hey ChrisL, maybe you should tell the people of Delaware that there state isnt a tax shelter, because they seem to believe it is:
https://www.wsj.com/articles/delaware-backs-overhaul-of-shell-company-rules-1529946813

I hate to break it to you, but ChrisL is more correct than you are
I'm pretty sure he's an accountant, so right there, his opinion has some sway on the subject matter (don't know your profession, but by your posting, I'm confident you're not an accountant)
I don't know specifically what the rules are in Delaware(and your links don't work), and maybe there are some tax loopholes, but by and large, incorporating in Delaware isn't some "magic elixir" for not paying taxes.
Maybe if you're brand holding company and get most of your income on trademarks/royalties or whatever (and as your link suggest, Delaware doesn't require income tax on those things) then you have a good deal with Delaware, but that's the exception rather than the rule.
If that weren't the rule you'd have a lot of S Corps/LLCs going out of their way to incorporate in states with no personal income tax (which I'm sure happens, to an extent, but because taxes are due in the state of transaction, it's not "worth it" to most companies)
For example My company is part of a JV that is incorporated in Delaware and that's because it's a JV between two companies incorporated in different states and Delaware is a good neutral ground. The JV doesn't pay any less taxes than any of the other entities (technically I think all the state taxes pass through proportionately to the principle members and are based on the state of transaction, but that is immaterial.)
 
I hate to break it to you, but ChrisL is more correct than you are
I'm pretty sure he's an accountant, so right there, his opinion has some sway on the subject matter

http://https://www.bctv.org/2020/02/04/senate-committee-focuses-on-corporate-tax-fairness-targets-delaware-loophole/

I respect your opinions, but it's called the "Delaware Loophole" for a reason. I can find and post hundreds of sources referring to Delaware as a corporate tax haven or shelter, and explaining how so. The Senate Democratic Policy Committee was working on the "Delaware Loophole" just as recently as February. It's a little ridiculous for either of you to dispute this with me, when i'm simply relying on the opinions and journalism of professionals much more familiar with corporate tax accounting than I am.
“Tens of thousands of companies are avoiding Pennsylvania state taxes because their home office is a file drawer in an office building somewhere in Delaware,” the report states. “And those that are paying are paying less. In 1994, 75 percent of corporations paid $1,000 or less in corporate income taxes. By 2003, 84 percent of all corporations were paying that much – less than a Pennsylvania family earning $36,000 a year pays in annual income taxes.”

"Calling it a very rough estimate, Department of Revenue Deputy Secretary of Tax Policy Amy Gill predicted that (using an average combined reporting rate) Pennsylvania could reap an additional 29 percent ($677 million) in corporate tax revenue."

No disrespect, but if Democrats in Senate thinks it's a problem, i'm going to take their word for it over a single accountant whom I almost always disagree with.
 
There, links fixed. Now go argue with: The New York Times, Wall Street Journal, The Atlantic, Investopedia, Mentalfloss, and a Senate Policy Committee
 
Corporate tax is like covid medicine in that the real answers are pretty nuanced, wonky, hedgey and gray. Aka boring. As complicated things are. But the corresponding hot takes are easily loud, black/white and outragey. And so therefore everyone believes corporations pay no taxes and that covid is the fake flu.
 
http://https://www.bctv.org/2020/02/04/senate-committee-focuses-on-corporate-tax-fairness-targets-delaware-loophole/

I respect your opinions, but it's called the "Delaware Loophole" for a reason. I can find and post hundreds of sources referring to Delaware as a corporate tax haven or shelter, and explaining how so. The Senate Democratic Policy Committee was working on the "Delaware Loophole" just as recently as February. It's a little ridiculous for either of you to dispute this with me, when i'm simply relying on the opinions and journalism of professionals much more familiar with corporate tax accounting than I am.
“Tens of thousands of companies are avoiding Pennsylvania state taxes because their home office is a file drawer in an office building somewhere in Delaware,” the report states. “And those that are paying are paying less. In 1994, 75 percent of corporations paid $1,000 or less in corporate income taxes. By 2003, 84 percent of all corporations were paying that much – less than a Pennsylvania family earning $36,000 a year pays in annual income taxes.”

"Calling it a very rough estimate, Department of Revenue Deputy Secretary of Tax Policy Amy Gill predicted that (using an average combined reporting rate) Pennsylvania could reap an additional 29 percent ($677 million) in corporate tax revenue."

No disrespect, but if Democrats in Senate thinks it's a problem, i'm going to take their word for it over a single accountant whom I almost always disagree with.

fair enough, but as Chris mentioned, it used to be more of a loophole. It's harder (I've noticed this over the last 10 years or so, but i'm sure it's been going on longer) to get away with that as states have been very aggressive about getting tax dollars. (there are a few instances I can recall where we've been double billed by states, i.e two states going after revenue for one transaction).
There is a "statistic" that is nonsense in there and that is "“Tens of thousands of companies are avoiding Pennsylvania state taxes because their home office is a file drawer in an office building somewhere in Delaware,” the report states"
That doesn't really mean anything. It doesn't describe specific companies, it doesn't describe anything...it's a buzz-statement to get people riled up.
There are lots of companies that are formed that aren't operating companies, that are largely formed in Delaware, there are JVs, like the one my company is in that is formed in Delaware. PA probably has some ridiculous franchise tax or something that you have to pay (even on a non-operational corporation), so of course they'll be paying less than $1000/year in corporate income taxes....because they may not make money, or the taxes are paid by a different operating corporation
 
Regarding PA, that senate report is talking about Delaware intangible holding or financing entities. Incorporating a legal entity in DE that has significant operations in PA would have no impact on the PA tax of that legal entity on a standalone basis.

PA does have a related party addback statute, but there are specific exceptions that are allowed under that law. If you meet one of those exceptions, then it really isn't a loophole as you are complying with the law as it was specifically written. A loophole is an unwritten or unintended consequence of a law.

States are free to go to combined reporting. Some however, look at the numbers and determine it will be a net unfavorable to do so. And many situations do occur where income is double taxed in states and loss companies are excluded from the tax base in states.

PA used to have a franchise tax (which ended up double taxing the same net worth in some instances) but repealed it in 2016.
 
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White people mispronouncing “ethnic” names that are pronounced phonetically is one of my pet peeves.
 
White people mispronouncing “ethnic” names that are pronounced phonetically is one of my pet peeves.

English is a ridiculous language though. Every vowel can have more than one phonic.
 
it's not the vowel pronunciation as much as it is questions around which syllable to emphasize

it's comma-la
 
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