Quote:
Originally Posted by saden1
What does that mean? Corporate profits are taxed. Are you saying that profits made on products sold outside the country shouldn't be taxed?
Almost every country in the world has a sales tax of sort and that's the kind of money foreign nations generate from American companies doing business in their nation. If, say, Microsoft does business in Italy, it's not paying corporate tax to the Italian goverment.
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If I start a business making widgets in Germany, I will pay taxes on what I earn in Germany. If my German-based business really takes off, and I start selling my products to Switzerland, the German government will not tax me on my sales in Switzerland. Every other industrialized country in the world has that policy except the United States. If I base a company in America making widgets, not only will I pay taxes on my sales in the United States, the U.S. Government will also tax me on the sales of my product if start selling it in Mexico. Again, we're the only industialized country in the world which has that form of double taxation. What some corporations are doing, is basing their headquarters outside the United States in countries that do not have that oppressive tax policy.
It simply comes down to what makes the good business sense. Is it therefore wrong for an American to base his company's headquarters in the Cayman Islands in an effort to avoid greater costs of operating his business? Is that immoral to you?