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Thread: Paradise papers

  1. #1
    SEÑOR Member Aimless's Avatar
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    Default Paradise papers

    Looking forward to seeing the fallout from this:

    https://www.icij.org/investigations/paradise-papers/
    “Humanity's greatest advances are not in its discoveries, but in how those discoveries are applied to reduce inequity.”
    — Bill Gates

  2. #2
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    Quote Originally Posted by Aimless View Post
    Looking forward to seeing the fallout from this:

    https://www.icij.org/investigations/paradise-papers/
    I found the investment of mrs Windsor in what is essentially a loan shark mildly amusing.
    Greece shows us that there is a kind of politician worse than the ones that break their election promises; the ones that keep their election promises.

  3. #3
    Senior Member Flixy's Avatar
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    US secretary of trade dealing with Venezuelan state oil company and Russia is a nice touch, too.
    Keep on keepin' the beat alive!

  4. #4
    SEÑOR Member Aimless's Avatar
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    He has recused himself from all matters involving shipping
    “Humanity's greatest advances are not in its discoveries, but in how those discoveries are applied to reduce inequity.”
    — Bill Gates

  5. #5
    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 01:17 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."

  6. #6
    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)

  7. #7
    Quote Originally Posted by wiggin View Post
    Because companies can't repatriate money without paying high marginal rates, they stash it offshore instead if investing it in the US.
    Considering the popularity of this tax haven "high" here literally means anything above zero.
    Last edited by Ominous Gamer; 11-07-2017 at 03:28 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."

  8. #8
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    Quote Originally Posted by wiggin View Post
    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.
    With territorial system you mean taxing where the profit is actually made?
    Greece shows us that there is a kind of politician worse than the ones that break their election promises; the ones that keep their election promises.

  9. #9
    Quote Originally Posted by Ominous Gamer View Post
    Considering the popularity of this tax haven "high" here literally means anything above zero.
    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.

    Quote Originally Posted by Hazir View Post
    With territorial system you mean taxing where the profit is actually made?
    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)

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