Tax avoidance scheme sounds like menu item at "tony" coffee house
Comment: This is complex and not completely understood by me. Related articles.
- Overseas Profits: When a 95% Tax Cut Doesn't Cut It (specifically mentions “double Irish” and “Dutch sandwich.”)
- WIKI Double Irish arrangement
- Dilbert cartoon strip
- ‘Double Irish With a Dutch Sandwich’ NYTimes graphic
- Google 2.4% Rate Shows How $60 Billion Lost to Tax Loopholes
- How Google's Refusal To Pay US Taxes Means US Taxpayers Fund Its Innovation, Resulting In A Benefit Of $100/Share (Scroll down for Bloomberg graphic)
- Tax avoidance: how big business cuts its bills: Double dips and Dutch sandwiches are two of the many strategies that big companies use to pay less tax
- U.S. Companies Dodge $60 Billion in Taxes With Global Odyssey
- Apple cash staying overseas because of taxes, company says
- Overseas Cash and the Tax Games Multinationals Play
- Companies Push for Tax Break on Foreign Cash
- Top U.S. Firms Are Cash-Rich Abroad, Cash-Poor at Home
- I confess ... I don't completely understand how the tax avoidance schemes work. The graphics help.
- It angers me!
- My naive and probably overly simplistic solution .... reduce or eliminiate US corporate income taxes (not property taxes!). My reasoning:
- All corporate taxes are ultimately paid by the end consumer. These articles suggest that it is more complex than that: Who Pays the Corporate Income Tax? and Who Ultimately Pays the Corporate Income Tax?
- If there were no corporate income taxes there would be no need to scheme to avoid them
Related: Articles on the 2004 "Tax Holiday":
ReplyDeleteDodging Repatriation Tax Lets U.S. Companies Bring Home Cash
FLASHBACK: Corporations Used 2004 Tax Holiday To Repatriate Billions, Then Laid Off Thousands Of Workers
Just the Facts: The Costs of a Repatriation Tax Holiday (w quote by President Obama ... below)
[O]ver the years, a parade of lobbyists has rigged the tax code to benefit particular companies and industries. Those with accountants or lawyers to work the system can end up paying no taxes at all. But all the rest are hit with one of the highest corporate tax rates in the world. It makes no sense, and it has to change.
So tonight, I’m asking Democrats and Republicans to simplify the system. Get rid of the loopholes. Level the playing field. And use the savings to lower the corporate tax rate for the first time in 25 years – without adding to our deficit. It can be done.
12/4: Example of using overseas cash: Baxter to buy Sweden's Gambol for about $4 billion
ReplyDelete"Companies like Baxter can unlock a fair amount of value when they find strategic use for their overseas cash," said Piper Jaffray analyst Matt Miksic.
Indeed, Baxter said it planned to finance the deal with cash overseas. Multinational companies that have large international sales often have difficulties moving that cash back to the United States where they can put it to use.
12/4: Corporate Taxes: Notably Absent from the Fiscal Cliff Discussions
ReplyDeleteThe more I see of the income tax--corporate or personal--the wiser the Founders, who explicitly banned direct taxes like this, seem to me. What about cutting government spending by about 80% and reinstituting a 15% tariff or small VAT?
ReplyDelete