minoridiot: It is not so much of "ripping off the US Treasury" as much as it is avoiding double taxation of income earned in a foreign jurisdiction.
ltdanman44: As long as the greedy few know that they can loot the coffers at the expense of the lower and middle classes
Galloping Galoshes: That government redistribution BS works so well; can youpoint me to a successful example that didn't involve revolution, thousands of deaths, and greater poverty?
Galloping Galoshes: That government redistribution BS works so well; can you point me to a successful example that didn't involve revolution, thousands of deaths, and greater poverty?
ltdanman44: "Our aim is not to do away with corporations but endeavoring to do away with any evil in them. We are not hostile to them; we are merely determined that they shall be so handled as to subserve the public good. We draw the line against misconduct, not against wealth."-T. Roosevelt
un4gvn666: Galloping Galoshes: That government redistribution BS works so well; can you point me to a successful example that didn't involve revolution, thousands of deaths, and greater poverty?Progressive Income tax.
midigod: minoridiot: It is not so much of "ripping off the US Treasury" as much as it is avoiding double taxation of income earned in a foreign jurisdiction.Those poor companies. How will they ever survive the onslaught of Uncle Sam?"The tech sector has led the way on this, moving their patents and other intellectual property to low-tax countries to give the appearance that their profits have been earned offshore. "Oh.
Galloping Galoshes: ltdanman44: As long as the greedy few know that they can loot the coffers at the expense of the lower and middle classesNot clear here if you are speaking of the corporations, which are following tax law, or the government, which is practicing tax policies that encourage corporations to keep overseas profits offshore. And please, your diatribe works better if you don't wear that Che Guevara t-shirt.That government redistribution BS works so well; can you point me to a successful example that didn't involve revolution, thousands of deaths, and greater poverty?
paswa17: I'm used to pundits telling me that China or Japan or whomever is the bad guy today are holding our debt and are putting us at a great risk of losing everything.
Dr Dreidel: I'll keep saying it - if companies worked half as hard making sure their employees got the same advantages as they do for themselves, we could pay off the national debt.That they don't is all the reason I need to support taxing them more.
Nicholas Urfe: The interest earned on the U.S. Treasuries is immediately taxable to the parent companies in the U.S., whether it is repatriated or not.The article writer somewhat misunderstands the deferral system. Taxation on the profits isn't deferred until the money is brought to the U.S.; it's generally deferred until a foreign corporation distributes (pays a dividend of) the earnings to a U.S. company. When a foreign company loans money to the U.S. government, it isn't effectively distributing the earnings to its U.S. parent. They're still tied up in the foreign company. The U.S. parent doesn't gain access to them through the Treasuries. If the U.S. parent does gain access to the earnings (e.g., because they are loaned to the U.S. parent), there are rules to treat that as a taxable distribution.As for why deferral exists in the first place: it's a feature, not a bug. If there is no deferral, a U.S. company which owns an Irish company operating in Ireland pays 35% tax (15% Irish plus 35% U.S. minus a credit for the Irish tax) on the Irish operations. A U.K. company doing the same thing pays just the Irish tax: 15%. If a given post-tax rate of return is required for that type of Irish operation, the U.S. company is going to be at a competitive disadvantage vs. the U.K. co. When it plows its Irish earnings back into the Irish company (say, to expand operations), it has less to invest in Ireland than a similarly situated Irish company owned by a U.K. company. Deferral makes the NPV of that 20% residual U.S. tax much lower.The main issue with what the tech companies are doing isn't that deferral exists. The problem is that companies which primarily make their money from intangible property have a much greater ability to choose which jurisdictions they are treated as earnings their profits in than other companies. The OECD and the U.S. government have been focused on trying to fix that issue for a few years now, but it's not an easy thing to do without breaking th ...
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