Looking forward to seeing the fallout from this:
https://www.icij.org/investigations/paradise-papers/
Looking forward to seeing the fallout from this:
https://www.icij.org/investigations/paradise-papers/
"One day, we shall die. All the other days, we shall live."
US secretary of trade dealing with Venezuelan state oil company and Russia is a nice touch, too.
Keep on keepin' the beat alive!
He has recused himself from all matters involving shipping
"One day, we shall die. All the other days, we shall live."
If anyone had any sense, this revelation would shut down the argument for trickle down and corporate tax cuts. These companies are already sitting on more cash than ever before. They can already afford to create new jobs and unemployment is already rather low. Any tax cuts are simply going to be hoarded with the rest of their money.
Last edited by Ominous Gamer; 11-07-2017 at 12:17 PM.
"In a field where an overlooked bug could cost millions, you want people who will speak their minds, even if they’re sometimes obnoxious about it."
OG, while I'm not convinced that tax cuts are the solution, you do realize that this actually is supportive of that thesis. Because companies can't repatriate money without paying high marginal rates, they stash it offshore instead if investing it in the US. There's plenty of reason to argue in favor of having a similar overall tax burden on companies but to reduce marginal rates by eliminating deductions (on eg debt) and switching to a territorial system.
"When I meet God, I am going to ask him two questions: Why relativity? And why turbulence? I really believe he will have an answer for the first." - Werner Heisenberg (maybe)
Last edited by Ominous Gamer; 11-07-2017 at 02:28 PM.
"In a field where an overlooked bug could cost millions, you want people who will speak their minds, even if they’re sometimes obnoxious about it."
Not really. Assets in offshore accounts often are quite low yielding; but if you're hit with a 35% tax on anything you repatriate, you really need to be sure it's a good investment you're making domestically. If the rate is, say, 20%, the bar for repatriating money to invest is much lower - and the increased yield from the domestic investment may pay off.
Widespread use of offshore domiciles is not evidence that companies refuse to invest; it's instead evidence that they refuse to repatriate money at high marginal rates. A much better critique would focus on the way that taxes are avoided by housing IP in low tax jurisdictions, even though the IP might have been developed in the US. The rules generally allow this at the moment, but going after these rules - rather than quibbling about marginal rates - would be far more effective at addressing a real issue.
Yes, as happens in most of the world. I recognize that determining where profit is made can be quite challenging in a multinational, especially one that sells tech services rather than physical products, but if rules could be fairly harmonized, I think it would greatly benefit the global tax system.
"When I meet God, I am going to ask him two questions: Why relativity? And why turbulence? I really believe he will have an answer for the first." - Werner Heisenberg (maybe)