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Hot Secretary, Get the President on the Phone. I Just Got Tired of Paying Taxes

i'm still not sure why millhouse was so riled up
 
DeaconCav06 said:
The US has the highest rate of corporate taxation in the developed world and paying US taxes on international income is a huge disadvantage.

There is a reason that all of these inversions are happening.
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While true, this makes for a horrible fact for the Dem narrative. Let's try not to repeat it in the future, kthanksbye?
 
As always is the case, BIG GAAP beats down BIG CONSULTING
 
jhmd2000 said:
While true, this makes for a horrible fact for the Dem narrative. Let's try not to repeat it in the future, kthanksbye?
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the rate is high but the rules and enforcement are both incredibly dumb
 
Doesn't matter, have to pay auditors to look at uncertain tax positions anyway.
 
ChrisL68 said:
Particularly to a country like Canada
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ChrisL and the several other posters who know this subject very well, Isn't the "highest corporate tax rate in the OECD" the statutory tax rate which is different from the effective tax rate?

"The federal corporate tax rate stands at 35%, and jumps to 39.2% when state rates are taken into account. But thanks to things like tax credits, exemptions and offshore tax havens, the actual tax burden of American companies is much lower.

In a report commissioned by Senators Carl Levin (D-Mich.) and Tom Coburn (R.-Okla.), the GAO looked at taxes paid by profitable U.S. corporations with at least $10 million in assets.

Even when foreign, state and local taxes were taken into account, the companies paid only 16.9% of their worldwide income in taxes in 2010."


I know it's dated, but I assume the figures are still similar. Can you all summarize what I'm missing, seriously, and please leave politics out of it." I'm trying to learn here not be combative.
 
Why the fuck can't we just get a person/party who wants to control spending but also says fuck off to religious zealots and others who want to pry into everyone's lives
 
ONW said:
ChrisL and the several other posters who know this subject very well, Isn't the "highest corporate tax rate in the OECD" the statutory tax rate which is different from the effective tax rate?

"The federal corporate tax rate stands at 35%, and jumps to 39.2% when state rates are taken into account. But thanks to things like tax credits, exemptions and offshore tax havens, the actual tax burden of American companies is much lower.

In a report commissioned by Senators Carl Levin (D-Mich.) and Tom Coburn (R.-Okla.), the GAO looked at taxes paid by profitable U.S. corporations with at least $10 million in assets.

Even when foreign, state and local taxes were taken into account, the companies paid only 16.9% of their worldwide income in taxes in 2010."


I know it's dated, but I assume the figures are still similar. Can you all summarize what I'm missing, seriously, and please leave politics out of it." I'm trying to learn here not be combative.
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All of the reasons have been discussed in this thread. Looking at financial reporting levels of income and comparing that to taxes paid is not a good reflection, because financial reporting income can include things like unrealized gain, deferred costs and stock compensation expense that doesn't really properly reflect the economic deduction amounts (which generally should be the amount of wage income that an employee recognizes on the transaction). 2010 was a terrible time to look at corporate taxes since 08 and 09 were terrible years for corporate profits and many companies generated net operating losses that they could use to offset profits.

Finally, many companies were expanding internationally in lower tax jurisdictions than the US and will be taxed at lower rates on income earnings overseas that aren't repatriated.
 
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ONW said:
ChrisL and the several other posters who know this subject very well, Isn't the "highest corporate tax rate in the OECD" the statutory tax rate which is different from the effective tax rate?

"The federal corporate tax rate stands at 35%, and jumps to 39.2% when state rates are taken into account. But thanks to things like tax credits, exemptions and offshore tax havens, the actual tax burden of American companies is much lower.

In a report commissioned by Senators Carl Levin (D-Mich.) and Tom Coburn (R.-Okla.), the GAO looked at taxes paid by profitable U.S. corporations with at least $10 million in assets.

Even when foreign, state and local taxes were taken into account, the companies paid only 16.9% of their worldwide income in taxes in 2010."


I know it's dated, but I assume the figures are still similar. Can you all summarize what I'm missing, seriously, and please leave politics out of it." I'm trying to learn here not be combative.
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1. There aren't a lot of "exemptions" for most US corporations. The primary one is the one for manufacturing in the US, which can cut the US rate from 35% to 32%
2. Tax credits (in my experience) may reduce the rate by at most 3%. There will be outliers, but not a lot.
3. The "effective tax rate" is the rate that a company has to pay globally on its global income. If you have a subsidiary in Ireland that makes a lot of money, you pay Irish taxes on that profit, rather than US taxes. You only pay US taxes when and if you pay a dividend back to the US. (You also are not allowed to use that money in the US very easily - there are a LOT of rules to shut down things like "loaning the Irish profits back to the US parent company."

Finally, I don't think they are talking about the effective tax rate; the wording leads me to believe it's the "cash" tax rate in question. Essentially: how much cash was paid in taxes divided by worldwide income. If you have lost money for years and built up large NOLs, you are allowed to use those losses when you finally are profitable.

http://ctj.org/ctjreports/2015/04/f...we_need_corporate_tax_reform.php#.VvKeduIrLRa

15corp2015.jpg


Here's another example - it's focused on CASH payments, not the effective rate. They cherry picked 2010-2014, when almost every company lost money in 2007-2009, thus building up large NOLs.
 
Cool. Thanks guys. So, is it misleading/dishonest to state the US has the highest corporate tax rate in the wrold?
 
No. Over the life of a company, their profits will be taxed at a higher rate than the exact same business outside the us. The rate in the us IS the highest.
 
Posted just to anger 06deacs and say it looks like a good show.

Panama Papers: Mossack Fonseca leak reveals elite's tax havens

http://www.bbc.com/news/world-35918844?post_id=932058093498951_1101614109876681#_=_

"Eleven million documents were leaked from one of the world's most secretive companies, Panamanian law firm Mossack Fonseca.

They show how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax."
 
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ONW said:
Posted just to anger 06deacs and say it looks like a good show.

Panama Papers: Mossack Fonseca leak reveals elite's tax havens

http://www.bbc.com/news/world-35918844?post_id=932058093498951_1101614109876681#_=_

"Eleven million documents were leaked from one of the world's most secretive companies, Panamanian law firm Mossack Fonseca.

They show how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax."
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What do the board accountants think of this developing story?
 
Strickland33 said:
What do the board accountants think of this developing story?
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I am happy they are being exposed. Money laundering and tax evasion are both immoral and illegal, as well as providing support for dictators, terriorists and international drug cartels. Pretty disgusting stuff.
 
Had you heard of this company before Chris?
 
ONW said:
Posted just to anger 06deacs and say it looks like a good show.

Panama Papers: Mossack Fonseca leak reveals elite's tax havens

http://www.bbc.com/news/world-35918844?post_id=932058093498951_1101614109876681#_=_

"Eleven million documents were leaked from one of the world's most secretive companies, Panamanian law firm Mossack Fonseca.

They show how Mossack Fonseca has helped clients launder money, dodge sanctions and evade tax."
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Who'd a thought Putin would be involved?

This should be a great story.
 
ChrisL68 said:
I am happy they are being exposed. Money laundering and tax evasion are both immoral and illegal, as well as providing support for dictators, terriorists and international drug cartels. Pretty disgusting stuff.
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Tax evasion is illegal.... But immoral?
 
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