What Is Tax Deferral?
The Obama Administration is proposing to raise more than $100 billion from American multinational corporations by limiting in some way the ability of U.S. companies to defer tax on profits earned abroad. The premise behind the proposal is that by raising the taxes paid on the foreign profits of U.S. companies earned abroad, the companies will somehow have more incentive to locate their operations here in the United States.
The proposal, however, is flawed and fails to recognize that in the increasingly global economy where capital flows freely across borders, the United States can no longer expect other countries to follow its policies. The proposal will penalize the foreign operations of U.S. companies operating abroad and make it more difficult for them to compete with foreign companies.
Duration : 0:2:6
This is voo-doo …
This is voo-doo economics. Almost no corporation pays 35% tax. About two-thirds of U.S. companies and foreign firms doing business in this country paid no federal income taxes from 1998 to 2005, according to a study by the GAO. The report also said that about 1/4 of large corporations – ones that had more than $250 million in ets or $50 million in gross receipts – paid NO taxes.
Fair trade tariffs PROTECT U.S. workers. Tariffs would make a level playing field, not prevent it.
It doesn’t explain …
It doesn’t explain the tax haven….I agree that lowering the corporate tax rate would be a good idea but having companies with a mail box in Bahamas when they aren’t selling or buying anything there just claiming they are is ridiculous.
Look at the trade …
Look at the trade deficit, Chip. U.S. has the highest trade deficit of all countries. We produce less and consume more than any other country in the world. Its an undeniable fact.
I see a factory in …
I see a factory in china. I see Chinese being employed. So what about the dude in america. How he gains. I see the a dude in germay gets health care and others from govt and the dude in usa does not. So american dude is screwed any how.
Say what?!? What do …
Say what?!? What do you mean we don’t produce anything in the country … ? Haven’t you ever taken an macro economics class?
The US is the worlds largest manufacturer. We produce about 36% of the total value of all the world’s manufactured goods. Our GDP is the largest in the world and is only outpaced by the combination of every European country in the EU.
That first statement is pure nonsense. I mean, where in the world do you even get that kind of an idea?
I hate it when …
I hate it when people are logical. Now what are the Dems going to do?
First, the United …
First, the United States does not produce anything here in this country. Second, lowering taxes overseas for U.S. business will only give more incentive to create jobs overseas not here.
best. video. ever.
best. video. ever.
Because the …
Because the Democrats would melt into a puddle of icky green goo if they (gulp) lowered taxes.
So why not just do …
So why not just do the obvious and eliminate the need entirely for US Companies to go abroad? LOWER THE CORPORATE TAX RATE.
Gee, that was easy. Anything else I can solve for you?