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US Companies Parking Profits Offshore Indefinitely

I'm just impressed that this thread lasted a full 2 pages before it went to shit.
 
RJKarl said:
What part makes no sense?

Part 1 - There should be a penalty set up for companies that move HQs to avoid US taxes. It's pretty simple.

Part 2 - If taxes are paid by consumers, so are all other costs. One way to help consumers would be across the board pay cuts.
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RJKarl said:
Not at all, if a company tries to evade US taxes they should be penalized.

Using the logic that all corporate taxes are paid by higher prices, then we should cut salaries because they are also paid by the consumer.
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I don't post in the Tunnels much at all, but this post. Holy shit.

Facepalm
 
RJKarl said:
Nothing I said had anything to do with communism. Your post makes no sense.
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It sounded a bit like you want to build a "wall" of penalties to keep them in. That sounds a lot like the way major communist countries have done business with their citizens.
 
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That's a BS extrapolation. We've used our tax code to incentivize and penalize people or businesses for decades. What I proposed is not a new concept on in any way communistic.

It's bizarre and very telling that anyone would strain themselves so much to invent something that was never there.

It does show laziness and a total lack of awareness of what I have posted over the years. The last thing anyone who actually reads what I post could ever think is I am anything remotely resembling a communist economically. But it is easier to just make things up about me then it is to pay attention.
 
Why anyone acknowledges the local idiot is beyond me.
 
PhDeac said:
I'm sure it's fun to mock somebody for coming up with more penalties, but nobody is talking about the benefits we can offer to encourage companies to stay.
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I've mentioned it on here before, but eliminate the COGS expense deduction for any labor or component not wholly sourced within the US. It would definitely have some isolationist consequences in terms of inflation, but IMO those would be offset by the dramatic increase in domestic jobs and production.

We could also eliminate the concept of depreciation as a whole, and just allow first-year expensing of all domestic business expenditures (basically like unlimited bonus depreciation for domestic expenses). I know the accounting purists will likely argue that it detaches financial reporting from taxation too much and does not accurately reflect economic life (both of which are true), but it is just a timing adjustment and again it would jumpstart domestic investment which I think outweighs the negatives.
 
Detaching financial reporting from taxation makes a lot of sense for corporate taxation.

I know absolutely nothing about corporate taxes but it seems like it would save corporations a lot of headache if there a flat fee based on the size of the corporation that wasn't connected to profits. Let them save money by firing pencil pushers rather than by avoiding taxes.
 
There are some states that have taxed based on net worth and/or business activity either as a replacement or addition to a net income tax. Some scraped it when they were losing businesses to other states during recessionary times as they were taxing the hell out of businesses that were losing money.

Michigan used to have a taxing scheme like this and they moved to a corporate income tax.

Not a very friendly tax strategy for start ups where you want tax policy to encourage investment.

NC taxes you on one of three NC net worth bases and apportioned income.
 
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What about import tariffs on companies relocating overseas? X amount of operations, employees, etc. must be located in the US, or you pay Y to sell your goods in the US. I'm sure it's a stupid idea somehow, just brainstorming.
 
ONW said:
What about import tariffs on companies relocating overseas? X amount of operations, employees, etc. must be located in the US, or you pay Y to sell your goods in the US. I'm sure it's a stupid idea somehow, just brainstorming.
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You have to pass World Trade Organization muster, but setting up a VAT (which taxes imports on their value and exempts exports) to replace a portion of your corporate income taxes would do so and is certainly accepted.

Taxing foreign entities that sell into the US is certainly a problem with our current tax structure.
 
ChrisL68 said:
There are some states that have taxed based on net worth and/or business activity either as a replacement or addition to a net income tax. Some scraped it when they were losing businesses to other states during recessionary times as they were taxing the hell out of businesses that were losing money.

Michigan used to have a taxing scheme like this and they moved to a corporate income tax.

Not a very friendly tax strategy for start ups where you want tax policy to encourage investment.

NC taxes you on one of three NC net worth bases and apportioned income.
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Thanks. So here's another radical idea. Get rid of corporate taxes for US based companies and dramatically increase tax rates starting at $250K, increase capital gains taxes, and get rid of many deductions and loopholes that benefit high income Americans.
 
ChrisL68 said:
You have to pass World Trade Organization muster, but setting up a VAT (which taxes imports on their value and exempts exports) to replace a portion of your corporate income taxes would do so and is certainly accepted.

Taxing foreign entities that sell into the US is certainly a problem with our current tax structure.
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Thx Chris, and tell me where I'm wrong here, but we have the consumer market that everyone wants access to. If we tell, for example IKEA, that they are paying a X% import tax unless they build a plant that produces Y% of their goods in the U.S., would that be acceptable by the WTO?
 
PhDeac said:
Thanks. So here's another radical idea. Get rid of corporate taxes for US based companies and dramatically increase tax rates starting at $250K, increase capital gains taxes, and get rid of many deductions and loopholes that benefit high income Americans.
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Actually like that. If the true goal is to strengthen our business community something along this lines could have a very positive effect without costing too much money to the government.
 
ONW said:
Thx Chris, and tell me where I'm wrong here, but we have the consumer market that everyone wants access to. If we tell, for example IKEA, that they are paying a X% import tax unless they build a plant that produces Y% of their goods in the U.S., would that be acceptable by the WTO?
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Also on board with this concept. We are the market everyone wants. It's time we start taking advantage of that for our own benefit and not China's (or swedens) benefit.
 
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