Schnee, the article only mentioned 2 things - Hopscotching and Stripping. The
former simply allows foreign made profits on which local taxes were paid, to be
sent to the US without paying US taxes. It simply avoids double taxation. No
other country taxes their corporations on profits made in other countries.
there is nothing wrong with it.Stripping seems shady, but its impact
would be negligible. If a US subsidiary made $1,000,000 in profits, it would
have to "borrow" about $20,000,000 from the home office where the
interest payments would equal about $1,000,000. This means that the home office
would have to cough up $20,000,000 and have it sit in the US where the home
office couldn't touch it. I doubt Tim Horton's is going to be able to
send BK 20x BK's profits to avoid paying US taxes. It only works where the
US subsidiary is a LOT smaller than the foreign owner.Most people
are basically fair and if the Dems and the IRS were fair, there wouldn't be
a lot of effort into dodging taxes.
So according to conservative only people pay taxes Not corporations because they
pass it on to the people.So would conservatives only tax the
citizens of this country and let the corporations keep all their profits so that
they will let it trickle down to the consumer and employees? Yeah I think
we've been trying that one and corporations have never kept their end of
that disaster st. reagan promised, just a steady decline in the middle class and
a growing gap of wealth.Lost, I'm aware of what I purchase and
whenever possible my dollars go to local businesses that are Not corporate, even
if your unaware that they exist.
@Kevin J. Kirkham"they'll still be paying their taxes on American
profits. "That's why I'm not that annoyed about the
inversion itself, it's all the other loopholes (some of which are noted in
the article) that will surely be exploited so that their American profit driven
tax bill is made as low as possible that I take issue with.
You may recall the young man who asked GOP presidential candidates, "How
much of my money do you think I should be allowed to keep?"That is the
crux here.Has a corrupt government and its collection agency, the IRS,
overstepped its bounds? Is government too big, too expensive and too ineffective
(see VA and immigration enforcement for examples) to have value to the average
taxpayer? As we gas up this holiday and pay high motor fuel taxes to ride on
bumpy roads, are we asking ourselves what government really does?Is it
worth it?Expect more inversion to take place. And expect more individuals
to shelter money and/or cheat on their taxes. People who get gouged by
government are likely to protect their own interests.
HVHmost of those local shops you visit are also corporations - sorry to
burst your bubbleMidwest Mom,unfortunately the personal tax
rates are higher and the health care choices are fewer. I see despite the close
proximity, you remain in WI and have not emmigrated to Canada. yeah, what ARE
you waiting for? no, please do not interpret that to imply I want you to leave.
Wow. Lower corporate taxes and national health care. What are we waiting for?
One thing all of you posters need to realize, is that the only person who pays
taxes is the final consumer. the person who eats that burger is the one who
pays the tax. the person who burns that gasoline is the one who pays the tax.
Everyone else just passes it on. Now all of you who are saying supply side
economics doesn't work; what is your option? would it be socialism,
communism? I don't see droves of people trying to get into Cuba, or China,
or even Russia right now. So, tell me what your fully integrated financial
system would look like, how would you keep the producers producing if they
can't keep what they produce, or can't turn a profit. Socialism may
work, in a beehive or ant hill!
@jsf. So how much will Burger King reduce the cost of a hamburger since they
will certainly pass on the savings to their customers once they invert and start
I hear those on the left complain that BK won't be paying for American
infrastructure via taxes which allowed them to earn those profits in the first
place. That claim is designed for the "low information voter" because
they'll still be paying their taxes on American profits. The libs claim
about BK isn't being loyal Americans or patriotic. Loyalty/patriotism is a
2-way street. The government isn't being loyal the BK by wanting to tax
money not earned in the US. It's abuse. BK is like an abused wife who
discovers that other men (countries) don't abuse their spouses (local
corporations) like BK's does. She is just packing her bags and leaving the
abusive relationship as much as possible. Don't blame the victim. Blame
the abuser in the White House.American citizens are giving up their
citizenship in droves because the IRS requires US citizens to pay US taxes on
the wages they earn overseas as legal residents and even make their non US
spouses pay US taxes. Foreign banks don't even want to deal with US
citizens due to the paperwork hassles. Again, don't blame the victim.
Corporations will destroy America, and the republicans will gladly give it away
for a donation to their campaign.O'well Can't say
I've visited them in years and will continue to shop local whenever
You haven't raised any new money,all you've done is literally out of
thin air, you've created a debt obligation." Sounds a lot like Fiat
Currency where the Fed just prints money to cover their obligation but
doesn't back up the "new money" with hard assets such as gold or
silver.What government doesn't understand is that corporations
are based on the principles of improvise, overcome and adapt. Where as
government is fixed, corporations are fluid and adjust to changes in the
economy, taxes and employment which is why so many universities now hire a large
percentage of instructors as contracted adjuncts. Not a real FT employee so you
don't have to pay benefits such as medial or retirement.
The IRS and tax laws are a complete waste of resources! Private companies would
much rather not have to pay accounting departments to manage their taxes, but
they have to or the IRS will come confiscate its fees at the point of a gun.Private business doesn't even pay taxes anyway, they never have and
they never will. Only people pay taxes. Any tax is a cost of doing business that
must be recovered from its customers.
A truth in advertising. Should apply to discussions about taxes.1) Burger
King is still required to pay U.S. federal tax on all income earned in the
U.S.2) Burger King will not be paying U.S. tax on income it earns out side
the U.S.3) Warren Buffet (One of Obama's financiers) the guy who says
you should pay more taxes is financing the deal.4) Corporations pass all
income tax expense through to their customers. Raise corporate taxes and the
price it sells its products for rises. In the case of Burger King, every
hamburger you by includes the tax costs. If the tax costs cannot be passed on
to the consumer the corporation ceases being in business. Corporate tax is
governments way of hiding the tax they charge the individual by including it in
the cost of everything you buy.
How could this be? The liberals tell me that companies only leave the US to
get cheaper labor, now we find out that BK is escaping high tax rates.I wish the liberals could have a consistent answer for why businesses leave
the US. But there is some home, maybe some of them will realize that it all
come down to the Government becoming overbearing on the businesses.
I think BO was actually on board to reform US tax laws, but harry and the
radical dems in the senate are too busy playing class warfare to actually do
something good.Oh please!Most mom and pops pay taxes at the
personal rates because they operate as sole proprietorships, partnerships, LLCs,
or S-corps. Liberals want them to pay higher taxes anyway because they are so
wealthy, regardless of the benefit they have on our society and the fact that
they already pay the lion’s share of taxes. Call it envy.GaryO,Doesn’t matter if it is historically low, what matters is
how it compares to the rest of the world. If your car now has an automatic
transmission, whereas before it only had a 3 on the tree, your car is better
than it was; but if the neighbor has a 6 speed auto, AC, CD player, 44 MPG
hybrid, and can tow 10,000 pounds, your neighbor’s car is better than
yours!Decreasing the tax rates greatly INCREASED federal revenues in
the 1960s, also in the 1980s. sorry you are so ill-informed.Baron,Individuals can renounce US citizenship and move elsewhere. that
option is not limited to corporations.
As Labor Day draws near, let's think about how American laborers "are
people" and how corporations "are people too" (thanks, Mitt), and
yet, corporations have significantly more rights and privileges than laborers
with the ability to invert abroad (that is, renounce American citizenship), stay
in America to enjoy its quality of life and privileges, but avoid paying taxes
like the rest of us laborers.What bothers me the most is how
corporations have Congress to thank for setting laws that allow them to invert,
but continue to rely on the American government to protect them from copyright
and patent stealing, guarding oil interests in the Mideast, the court system,
subsidies for water, transportation, energy, etc. ... they don't want to
pay for these privileges, but they can still use them because they're here.
Hey DNSubscriber -"Me? I say cut the spending, and reduce the
tax rates which will increase revenue."I know . . . It's
the same UNWORKABLE mantra.Decreasing personal tax rates, especially
for the highest earners, has proven consistently to DECREASE revenues, not
increase them, everything else being the same.Yet, in spite of all
the actual EVIDENCE refuting what they say, "Conservatives" just keep on
making the same unsupportable claims."Conservatives"
inevitably point to the Reagan administration as support for their false
claims.Yes, Reagan reduced taxes for high earners, and yes revenue
increased, but that was due to a completely unrelated phenomenon. The price of
world oil plummeted during the Reagan administration (no thanks to Reagan) to
less than 1/3 of what it had been during the Carter administration. That spurred
the economy, increased profits, and increased tax revenue . . . NOT
Reagan's policies."Conservatives" say trickle-down
economics creates jobs.WHERE are the jobs? And WHERE is the immense
revenue we are supposed to be generating through our relatively low personal
taxes high earners enjoy?Sorry DNSubscriber, but the facts to NOT
support your claims.
The inversion thing is fine, it's all that other stuff mentioned in the
piece describing exploitive loopholes that prevent them from paying much of
their taxes on the US holdings, that's what the problem is.
I want everyone who complains about corporations or individuals not "paying
their fair share" to prove their sincerity.Those folks you are
complaining about are just obeying the (very convoluted) laws on the books and
have lots of people working hard to pay the absolute minimum taxes they must.
Otherwise, the would be thrown in jail.Now, critics, we assume you
likewise obey the law, but claim all your deductions and report all your income
and file for refundable tax credits, exactly the same stuff you are complaining
about the corporations. Since you think they should voluntarily subject
themselves to voluntarily paying more than the law requires, you need to do
likewise. In fact, it is easy, you can send a check to the Bureau of the Fiscal
Service, P. O. Box 2188,Parkersburg, WV 26106.Please report
back how much you paid, and your future comments will be weighed according to
your willingness to do as you say.Me? I say cut the spending, and
reduce the tax rates which will increase revenue.
Hey Mountanman -"Talk about government greed!"The effective corporate tax rate in this nation is very low historically. Look
it up. And NO, not on some lying Right Wing Web site.And its
"government greed" that pays the bills. "Conservatives" keep
complaining about paying down the debt, but the debt will never be paid down
without revenue.And where does revenue come from? It comes from
taxes. "Conservatives" consistently oppose true fiscal Conservatism.Many Democrats believe the tax code should be restructured. The highest
individual tax bracket should be bumped way back up to where it was when the
nation collected enough revenue to pay its debts. And yes, we should look at
corporate tax code.Of course, Republican politicos should just keep
their hands off of it, since they will inevitably see to it that only the
wealthiest in this nation will benefit at the expense of everyone else.It's what they do.
Burger King is just doing what progressives are promoting: Open borders. They
are just economic refugees wanting a better life up North.
With operations moving to Canada, Burger King's federal tax rate will be
cut nearly in half. This means they can open more Burger King and Tim Horton
chains, and create more jobs. Imagine that, lower tax rates incentivize
businesses to hire more people...who would've thunk it?Good for
Burger King...and Tim Hortons!
Mountainman is correct. BK will still pay taxes.The big advantage of
inversion is that BK will no longer have to pay taxes on foreign operations that
have nothing to do with their US operations. Only our IRS is able to get away
with that.Many corporations are parking their money overseas in protest
over our greedy tax laws.Libs won't explain that to you.
Corporations are people. I'm a person (but not a corporation). How can I
"invert" myself offshore while living in the US in my wonderful
neighborhood with great schools, first responders, courts and infrastructure?
Oh, and I'd like to keep collecting welfare from the US government too.
Relax liberals, Burger King will pay taxes in the US even though the US has the
highest corporate taxes in the world! Why would anybody with a brain start a
business in America today? Talk about government greed!
Mega corporations aside...the large tax rate hurts thousands of small
corporations, some are the mom-and-pop variety. Many of these are the
people/families who have/had a multi-generational, positive impact in our cities
and towns. It's sad that the small guys who hire local people are pushed
out of business by federal government tax rates, burdensome paperwork and the
like. Obama and his ilk have had plenty of time to decrease tax rates for all
not just the select few. Interesting that Obama and Democrats would
question the patriotism of corporations seeking to move headquarters outside the
US. Conversely, I would certainly QUESTION THE PATRIOTISM OF OBAMA, his wife,
and his never-worked-a-day-in-the-public-sector (a little exaggeration, but not
We all must realize that it costs money to have the likes of Henry Waxman and
Elizabeth Warren grouse about greed.The most laughable part is that
politicians try to convince us that big government is good and we should all pay
up so it can get bigger.Give me a break!
"GE pays no tax as it is a pal of Obama"Yup before Obama
came into office GE paid loads of taxes and then after he went out of his way to
cut a special deal for that single corporation.In reality big
companies have been getting away with this type of thing for decades.
Romney had a minuscule amount offshore. Miore than $17 trillion of US business
is now overses because we have the highest corporate tax rate. 40% vs 25% of
socialist EU nations. GE pays no tax as it is a pal of Obama. Crony capitalism
is the name. We also have excessive red tape. Business needs to be monitored,
but bureaucrats keep adding rules and regulations, it's what they do. So
unless you put in sunset laws regulations just keep adding up.
The US has a lot of leverage with corporations. This is the richest market in
the world and all corporations want to sell their goods and services to us. In
addition, we're still providing a safe haven for them to operate in. Time
for our leaders to devise tax policies that leverage our markets and capital.
If you have the choice of paying higher taxes or lower taxes, which would you
choose.The downside of globalism is that you have choices. Do you pay
workers $50 a day or $50 a month? Factor in quality and transportation costs and
you make a logical decision.The Romneys and the Kennedys both kept money
off-shore to avoid taxes. I seem to recall an old economics book that explained
how people act in their self-interest.It never mentioned the unseen heavy
hand of a corrupt IRS though.
It wouldn't matter how low the tax rates are. US companies are filled with
accountant/lawyers who will forever come up with more and more ingenious ways to
dodge any tax obligation.GE pays no income tax at all. No need to invert.
They're just smarter and less willing to pay their way than any other