12.03.2012

Tax avoidance scheme sounds like menu item at "tony" coffee house

Comment: This is complex and not completely understood by me. Related articles.

Comments:
  • 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:

4 comments:

  1. Related: Articles on the 2004 "Tax Holiday":

    Dodging 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.

    ReplyDelete
  2. 12/4: Example of using overseas cash: Baxter to buy Sweden's Gambol for about $4 billion

    "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.

    ReplyDelete
  3. The 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

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