Quote:
Originally Posted by saden1
Tax Reform - I'd like to see the elimination of tax havens for corporations and wealthy individuals. No, you can't do business in the states and have you HQ in the Cayman Islands.
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Saden, this is an interesting comment, one that I’ve heard many times as an example of outrage over corporations looking to escape tax liabilities. But did you know that the United States is the only industrialized country in the world which imposes taxes on American based companies on products sold outside the United States? Every other industrialized nation will charge a tax on products sold in their own country, but not on what they sell overseas. The U.S. is the only country that does it.
Can you blame a corporation from moving its headquarters to a place that offers the best opportunity to do business? Let’s say you personally had the choice to work or start a business in two of our 50 states – one imposes a state income tax, and one does not. Which state would you choose? Is it wrong to look out for your own best interests and locate your business in the state which provides the best incentives to work there? Of course not! So why should it be any different for any other business?
Aside from all that, how exactly do we stop businesses from headquartering in another country? Do we stop them at the border or an airport at gunpoint? Or once they do relocate, do we stop allowing them to sell their product here, in an effort to punish them for not ‘doing the right thing’ by taking it up the butt in taxes?