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Showing Original Post only (View all)An Easy Way to Squeeze a Lot of Taxes from Corporations That Try to Hide Their Profits Offshore [View all]
http://www.alternet.org/economy/easy-way-squeeze-lot-taxes-corporations-try-hide-their-profits-offshoreHere is one thing Congress could do that would create more jobs, boost the economy and reduce both the budget deficit and the trade deficit. This one thing would not only provide a big boost now, but would provide an ongoing boost from now on. Congress should modify the deferral tax loophole that lets companies dodge their taxes by moving and keeping profits out of the country.
The top corporate tax rate is currently 35%. But corporations are allowed to defer paying taxes on profits earned outside of the country until they repatriate those profits, which means bringing the money back into the country. (Any taxes paid elsewhere are deducted from the amount owed.) There are solid reasons to allow corporations to do this. Simply put, they might need to put that money to good use, which will benefit the company, which in theory will later benefit our country.
But this tax deferral has turned into a huge loophole that is draining our country of jobs, tax revenue, investment, manufacturing infrastructure and other good things We the People are supposed to receive in return for allowing these corporations to operate. Companies not only are keeping profits out of the country, the loophole gives them an incentive to engage in schemes that shift more and more jobs, production and profit centers out of the country. (One well-known example: Apple transferred ownership of its crown jewels intellectual property to Ireland.)
A Ton Of Cash That We The People Could Really Put To Use
The amount now being held outside of the country is astounding. Some estimates say that it is as much as $1.5 to 2 trillion, or even more. If the full amount were brought back and the tax rate applied that would bring a $525-700 billion windfall that the government could use to hire people to get things done that really, really need to get done like modernizing our infrastructure, hiring teachers, building high-speed rail, retrofitting homes and buildings to be energy-efficient so manythings (Of course it would be less because of taxes paid elsewhere, etc., but were still talking hundreds of billions.)
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An Easy Way to Squeeze a Lot of Taxes from Corporations That Try to Hide Their Profits Offshore [View all]
xchrom
Sep 2013
OP
Of course the congresscritters' corporate owners would never let them pass this.
hobbit709
Sep 2013
#2
And two years later the owners buy MORE tax breaks from Congress.........
socialist_n_TN
Sep 2013
#15
Easiest thing would be to prohibit the corporation as a business organization.
mbperrin
Sep 2013
#12
Yes. Let business owners operate as partners in the same manner as Lloyd's of London.
AnotherMcIntosh
Sep 2013
#21
Yes, in their pre-1994 mode, where "Names" faced unlimited personal liability for their decisions.
mbperrin
Sep 2013
#23
Until we push (hard) and achieve campaign finance reform and publicly funded elections,
Dustlawyer
Sep 2013
#9