SGG's What's Your Issue Poll

[saden1]

Originally Posted by Beemnseven

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?

Internation law works such that a corporation pays taxes in the country it is based out of. Whether you make the money in the sates or not is irrelevant. You have to pay taxes to somebody and if you're not paying any taxes, well, you're cheating the system. You and I will have to pick up their load, and that doesn't sit well with me.

As for the states, they really have to compete for business to move to their states and create jobs. Most corporations are based out of Delaware, Nevada or New Jersey nowadays to avoid paying state taxes. I would like to see life made simple for the corporations. Them having to deal with so many states tax laws is unfair and inefficient.

How would a stop a corporation from cheating the system? Tax them more. Place tariff on their goods.

[Beemnseven]

Originally Posted by saden1

Internation law works such that a corporation pays taxes in the country it is based out of. Whether you make the money in the sates or not is irrelevant. You have to pay taxes to somebody and if you're not paying any taxes, well, you're cheating the system. You and I will have to pick up their load, and that doesn't sit well with me.

Right -- businesses and corporations will always pay taxes to the country that they are based in, but only the United States imposes taxes on products sold in their country and products sold in other countries. That's why it makes good business sense to move your headquarters out of the country that has a bad tax policy and into a country that has a better tax policy. You still think that's a bad thing?

Unless you're rich, because I'm certainly not, you and I are likely not "picking up the load." Most of the tax revenue in this country comes from top earners thanks to our progressive tax system. Politicians love it that way -- they can stay in power by appealing to the larger mass of voters by sticking it to the rich who are far fewer in numbers.

[saden1]

Originally Posted by Beemnseven

Right -- businesses and corporations will always pay taxes to the country that they are based in, but only the United States imposes taxes on products sold in their country and products sold in other countries. That's why it makes good business sense to move your headquarters out of the country that has a bad tax policy and into a country that has a better tax policy. You still think that's a bad thing?

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.

Originally Posted by Beemnseven

Unless you're rich, because I'm certainly not, you and I are likely not "picking up the load." Most of the tax revenue in this country comes from top earners thanks to our progressive tax system. Politicians love it that way -- they can stay in power by appealing to the larger mass of voters by sticking it to the rich who are far fewer in numbers.

It don't think it should matter whether I am rich or not. I'm still paying taxes and the corporations are setting up shell companies outside the states to shelter them from taxes. On the account of principle I protest.

[Beemnseven]

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.

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?

[saden1]

Originally Posted by Beemnseven

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?

That is a blatant lie the talking heads on TV are spewing. Straight from the horses mouth:

Corporate entities whose registered or administrative office is located in Germany are subject to corporate income tax on their global income. The corporation tax law makes extensive use of the principles and provisions of income tax law, especially in respect to the determination of profits and the assessment and payment of tax.

No developed nation would allow a system in which companies don't pay taxes on certain earnings/profits. If the United States did as you suggested we would be fucked! We would lose half the taxes Blue Chip companies like Boeing, GE, and IBM pay.

[Beemnseven]

Originally Posted by saden1

How would a stop a corporation from cheating the system? Tax them more. Place tariff on their goods.

And who pays the tab for that greater tax burden?

Answer? The consumers. The businesses and corporations will simply pass the expense on to the people who buy their products. So the cost is simply diverted. In the end, the consumers get stuck with the tab.

[saden1]

Originally Posted by Beemnseven

And who pays the tab for that greater tax burden?

Answer? The consumers. The businesses and corporations will simply pass the expense on to the people who buy their products. So the cost is simply diverted. In the end, the consumers get stuck with the tab.

Tariffs are designed to make market entry costly and prohibitive. At some point these companies will figure out that it's much cheaper to just pay their share and move on. If they don't their shareholders will be up in arms and no company wants that.