Awash In Record Profits, Corporations Shift Even More To Offshore Tax Havens

[TruthOut10]

Even as American corporations are raking in record profits, the largest among them are shifting larger amounts of money away from the United States and into offshore tax havens that allow them to pad their bottom lines even more, according to multiple analyses of legal filings made since the beginning of 2013.

The Wall Street Journal found that the 60 largest companies moved $166 billion offshore in 2012, shielding 40 percent of their earnings from American taxes and costing the U.S. billions in lost revenue:


The amount of money at stake is significant, particularly when the U.S. budget deficit is high on the political agenda. Just 19 of the 60 companies in the Journal’s survey disclose the tax hit they could face if they brought the money back to their U.S. parent. Those companies say they might have to pay $98 billion in additional tax—more than the $85 billion in automatic-spending cuts triggered this month after the White House and Congress couldn’t agree on an alternative.

Awash In Record Profits, Corporations Shift Even More To Offshore Tax Havens | ThinkProgress

 

[Toddsterpatriot]

Even as American corporations are raking in record profits, the largest among them are shifting larger amounts of money away from the United States and into offshore tax havens that allow them to pad their bottom lines even more, according to multiple analyses of legal filings made since the beginning of 2013.

The Wall Street Journal found that the 60 largest companies moved $166 billion offshore in 2012, shielding 40 percent of their earnings from American taxes and costing the U.S. billions in lost revenue:


The amount of money at stake is significant, particularly when the U.S. budget deficit is high on the political agenda. Just 19 of the 60 companies in the Journal’s survey disclose the tax hit they could face if they brought the money back to their U.S. parent. Those companies say they might have to pay $98 billion in additional tax—more than the $85 billion in automatic-spending cuts triggered this month after the White House and Congress couldn’t agree on an alternative.

Awash In Record Profits, Corporations Shift Even More To Offshore Tax Havens | ThinkProgress

They earned the money "offshore", they didn't move it there.

 

[realinvestment]

Many decisions on location are based mainly on tax as opposed to other things.

Why in heck would Apple produce its IPhone 5 in China?

 

[alan1]

Even as American corporations are raking in record profits, the largest among them are shifting larger amounts of money away from the United States and into offshore tax havens that allow them to pad their bottom lines even more, according to multiple analyses of legal filings made since the beginning of 2013.

The Wall Street Journal found that the 60 largest companies moved $166 billion offshore in 2012, shielding 40 percent of their earnings from American taxes and costing the U.S. billions in lost revenue:


The amount of money at stake is significant, particularly when the U.S. budget deficit is high on the political agenda. Just 19 of the 60 companies in the Journal’s survey disclose the tax hit they could face if they brought the money back to their U.S. parent. Those companies say they might have to pay $98 billion in additional tax—more than the $85 billion in automatic-spending cuts triggered this month after the White House and Congress couldn’t agree on an alternative.

Awash In Record Profits, Corporations Shift Even More To Offshore Tax Havens | ThinkProgress

What's yer point?

 

[realinvestment]

His point is that our tax code gives multinationals an incentive to move jobs offshore.

 

[SteadyMercury]

Many decisions on location are based mainly on tax as opposed to other things.

Why in heck would Apple produce its IPhone 5 in China?

You pay Mike Smith $18/hour at the high-tech manufacturing plant in Arizona, or you pay Xiao Lin $18/day for the same work in Shenzhen.

This practice with holding money overseas has mainly to do with profits, not the direct costs of labor. US tax rules are such that profits generated by overseas subsidiaries are not taxed if the money isn't brought back to the US.

 

[realinvestment]

<<<This practice with holding money overseas has mainly to do with profits, not the direct costs of labor. US tax rules are such that profits generated by overseas subsidiaries are not taxed if the money isn't brought back to the US.>>>

You haven't begun to grasp the issue of our tax code. For starters, Apple's assembly cost in China was miniscule compared to the overall cost. The money was in components, not Chinese assembly. Plus the company took a risk building things in China that were designed in the US. Without the tax consequence, it wouldn't have made sense to build the IPhone in China.

The point is that the minor value added in China ended up with a huge transfer value when reported to the IRS. It basically eliminated US profts.

Check out Apple's 10K and you will see an extraordinary low income tax expense. Factor out the change in deferred tax liability, and you will see Apple didn't pay much income tax to any country.

 

[TruthOut10]

<<<This practice with holding money overseas has mainly to do with profits, not the direct costs of labor. US tax rules are such that profits generated by overseas subsidiaries are not taxed if the money isn't brought back to the US.>>>

You haven't begun to grasp the issue of our tax code. For starters, Apple's assembly cost in China was miniscule compared to the overall cost. The money was in components, not Chinese assembly. Plus the company took a risk building things in China that were designed in the US. Without the tax consequence, it wouldn't have made sense to build the IPhone in China.

The point is that the minor value added in China ended up with a huge transfer value when reported to the IRS. It basically eliminated US profts.

Check out Apple's 10K and you will see an extraordinary low income tax expense. Factor out the change in deferred tax liability, and you will see Apple didn't pay much income tax to any country.

It blows my mind on how they deny the obvious, they live in an alternative universe produced and sold by Faux Fake News. They defend these corporations who aren't paying their fair share of taxes with this STUPIDITIY of "I Built This" bullshit motto.

 

[Toddsterpatriot]

<<<This practice with holding money overseas has mainly to do with profits, not the direct costs of labor. US tax rules are such that profits generated by overseas subsidiaries are not taxed if the money isn't brought back to the US.>>>

You haven't begun to grasp the issue of our tax code. For starters, Apple's assembly cost in China was miniscule compared to the overall cost. The money was in components, not Chinese assembly. Plus the company took a risk building things in China that were designed in the US. Without the tax consequence, it wouldn't have made sense to build the IPhone in China.

The point is that the minor value added in China ended up with a huge transfer value when reported to the IRS. It basically eliminated US profts.

Check out Apple's 10K and you will see an extraordinary low income tax expense. Factor out the change in deferred tax liability, and you will see Apple didn't pay much income tax to any country.

It blows my mind on how they deny the obvious, they live in an alternative universe produced and sold by Faux Fake News. They defend these corporations who aren't paying their fair share of taxes with this STUPIDITIY of "I Built This" bullshit motto.

Fair share? LOL!
What is the fair share a US company should pay for profit earned in Europe? For profit earned in Asia?
Spell it out. Use logic.

 

[Mad Scientist]

His point is that our tax code gives multinationals an incentive to move jobs offshore.

America used to charge foreign companies a fee for access to American Market, it was called Tariff. Bring in lots of money and was and no Income Tax.

Now Glorious Bankers capture America and Money Supply and write Tax Laws.

This is common knowledge but Americans only care about what is on TV.

 

[william the wie]

<<<This practice with holding money overseas has mainly to do with profits, not the direct costs of labor. US tax rules are such that profits generated by overseas subsidiaries are not taxed if the money isn't brought back to the US.>>>

You haven't begun to grasp the issue of our tax code. For starters, Apple's assembly cost in China was miniscule compared to the overall cost. The money was in components, not Chinese assembly. Plus the company took a risk building things in China that were designed in the US. Without the tax consequence, it wouldn't have made sense to build the IPhone in China.

The point is that the minor value added in China ended up with a huge transfer value when reported to the IRS. It basically eliminated US profts.

Check out Apple's 10K and you will see an extraordinary low income tax expense. Factor out the change in deferred tax liability, and you will see Apple didn't pay much income tax to any country.

It blows my mind on how they deny the obvious, they live in an alternative universe produced and sold by Faux Fake News. They defend these corporations who aren't paying their fair share of taxes with this STUPIDITIY of "I Built This" bullshit motto.

Fair share? LOL!
What is the fair share a US company should pay for profit earned in Europe? For profit earned in Asia?
Spell it out. Use logic.

Another factor behind these laws has to do the speed of technological obsolescense. In the last 40 years in recorded music we went from vynyl to 8-track to cassette to CDs to pod. Shifting real economy booms and busts on to someone else reduces disruption in careers. We used up Japan doing that and now we are using up China. As a political and economic strategy I have my problems with it but it is what we are doing.

 

[Stephanie]

<<<This practice with holding money overseas has mainly to do with profits, not the direct costs of labor. US tax rules are such that profits generated by overseas subsidiaries are not taxed if the money isn't brought back to the US.>>>

You haven't begun to grasp the issue of our tax code. For starters, Apple's assembly cost in China was miniscule compared to the overall cost. The money was in components, not Chinese assembly. Plus the company took a risk building things in China that were designed in the US. Without the tax consequence, it wouldn't have made sense to build the IPhone in China.

The point is that the minor value added in China ended up with a huge transfer value when reported to the IRS. It basically eliminated US profts.

Check out Apple's 10K and you will see an extraordinary low income tax expense. Factor out the change in deferred tax liability, and you will see Apple didn't pay much income tax to any country.

It blows my mind on how they deny the obvious, they live in an alternative universe produced and sold by Faux Fake News. They defend these corporations who aren't paying their fair share of taxes with this STUPIDITIY of "I Built This" bullshit motto.

lol, you remind me of a show I just watched and you were arrested in it..
the corporations is taking over your minds, ooooooooooooooooooooooooooooooooo

 

[Bill Angel]

The stockholders themselves may help to correct the problem. For example in the case of Apple there is an effort by certain stockholders to get them to pay out their cash hoard to them in the form of dividends.
Apple's plan for its cash: stock buyback or more dividends likely coming this spring ? Quartz

 

[SteadyMercury]

For starters, Apple's assembly cost in China was miniscule compared to the overall cost. The money was in components, not Chinese assembly. Plus the company took a risk building things in China that were designed in the US. Without the tax consequence, it wouldn't have made sense to build the IPhone in China.

It is my understanding the Apple tax issues arise from them booking profits overseas because they have so much profit in digital royalties and patents to foreign subsidiaries, not cost of labor/production. The countries specifically mentioned in Apple's tax avoidance strategy include Ireland, the Netherlands, Luxembourg and the British Virgin Islands. They use similar shenanigans with state taxes domestically by handling profits thru a subsidiary in Reno instead of California.

The choice to manufacture in China goes beyond labor, it also has to do with flexibility of scale and the supply chain, think of geographic availability of the components you mentioned. Good article on reasons they manufacture in China here:

http://www.nytimes.com/2012/01/22/b...queezed-middle-class.html?pagewanted=all&_r=0

 

[william the wie]

For starters, Apple's assembly cost in China was miniscule compared to the overall cost. The money was in components, not Chinese assembly. Plus the company took a risk building things in China that were designed in the US. Without the tax consequence, it wouldn't have made sense to build the IPhone in China.

It is my understanding the Apple tax issues arise from them booking profits overseas because they have so much profit in digital royalties and patents to foreign subsidiaries, not cost of labor/production. The countries specifically mentioned in Apple's tax avoidance strategy include Ireland, the Netherlands, Luxembourg and the British Virgin Islands. They use similar shenanigans with state taxes domestically by handling profits thru a subsidiary in Reno instead of California.

The choice to manufacture in China goes beyond labor, it also has to do with flexibility of scale and the supply chain, think of geographic availability of the components you mentioned. Good article on reasons they manufacture in China here:

http://www.nytimes.com/2012/01/22/b...queezed-middle-class.html?pagewanted=all&_r=0

If I'm not mistaken the current beggar thy neighbor policy through currency manipulation will be followed by Beggar thy neighbor corporate tax policies in 2014-5. With Obamacare scheduled to kick in 1/1/14 and 10 months for voters and contributers to get really mad at congressional Dems I don't see this problem improving.

 

[EdwardBaiamonte]

Even as American corporations are raking in record profits, the largest among them are shifting larger amounts of money away from the United States and into offshore tax havens that allow them to pad their bottom lines even more, according to multiple analyses of legal filings made since the beginning of 2013.

of course they have a legal or fiduciary responsibility to seek profits for their shareholders and that obviously does not include wasting money on taxes by paying the highest libturd corporate tax rate in the world.

What we ought to do is eliminate the corporate tax or lower it to say 10% as Ireland did so prices would drop thus making us all richer and so every corporation in the world would want to operate here creating million of jobs!!

Liberals simply lack the IQ to understand how simple the issue is.

 

[emptystep]

<<<This practice with holding money overseas has mainly to do with profits, not the direct costs of labor. US tax rules are such that profits generated by overseas subsidiaries are not taxed if the money isn't brought back to the US.>>>

You haven't begun to grasp the issue of our tax code. For starters, Apple's assembly cost in China was miniscule compared to the overall cost. The money was in components, not Chinese assembly. Plus the company took a risk building things in China that were designed in the US. Without the tax consequence, it wouldn't have made sense to build the IPhone in China.

The point is that the minor value added in China ended up with a huge transfer value when reported to the IRS. It basically eliminated US profts.

Check out Apple's 10K and you will see an extraordinary low income tax expense. Factor out the change in deferred tax liability, and you will see Apple didn't pay much income tax to any country.

It blows my mind on how they deny the obvious, they live in an alternative universe produced and sold by Faux Fake News. They defend these corporations who aren't paying their fair share of taxes with this STUPIDITIY of "I Built This" bullshit motto.

I'm with you on this one. If they are not personally benefiting from this why would anyone defend this. I don't think these people are directly benefiting from this so why defend this? I just don't get it either.

Also yesterday I watching 10 Republicans sit at a table and moan how they were trying to protect everyday Americans against the Democratic budget and when an amendment came up to end this every single one of them voted against it.

 

[Toddsterpatriot]

<<<This practice with holding money overseas has mainly to do with profits, not the direct costs of labor. US tax rules are such that profits generated by overseas subsidiaries are not taxed if the money isn't brought back to the US.>>>

You haven't begun to grasp the issue of our tax code. For starters, Apple's assembly cost in China was miniscule compared to the overall cost. The money was in components, not Chinese assembly. Plus the company took a risk building things in China that were designed in the US. Without the tax consequence, it wouldn't have made sense to build the IPhone in China.

The point is that the minor value added in China ended up with a huge transfer value when reported to the IRS. It basically eliminated US profts.

Check out Apple's 10K and you will see an extraordinary low income tax expense. Factor out the change in deferred tax liability, and you will see Apple didn't pay much income tax to any country.

It blows my mind on how they deny the obvious, they live in an alternative universe produced and sold by Faux Fake News. They defend these corporations who aren't paying their fair share of taxes with this STUPIDITIY of "I Built This" bullshit motto.

I'm with you on this one. If they are not personally benefiting from this why would anyone defend this. I don't think these people are directly benefiting from this so why defend this? I just don't get it either.

Also yesterday I watching 10 Republicans sit at a table and moan how they were trying to protect everyday Americans against the Democratic budget and when an amendment came up to end this every single one of them voted against it.

why would anyone defend this.

Why would anyone defend not handing over money to the government, unnecessarily?
You're joking, right?

 

[EdwardBaiamonte]

They defend these corporations who aren't paying their fair share of taxes

corporations are tax collectors, not taxpayers. A tax like any expense is simply passed on to customers. Ever wonder why a Rolls Royce costs more than a VW?? Ans: The high costs of making it are passed on to customers.

A libturd wants higher corporate taxes only because he lacks the IQ to know he will paying them.

We have corporate taxes only to pander to the pure ignorance of liberal Marxists who have been brainwashed to hate the very corporations that provide our jobs, sell us Ipods and surgical robots to save our lives, and jet planes so we can vacation around the world.

See why we are 1000% positive a liberal will be slow, so very very slow.

 

[emptystep]

They defend these corporations who aren't paying their fair share of taxes

corporations are tax collectors, not taxpayers. A tax like any expense is simply passed on to customers. Ever wonder why a Rolls Royce costs more than a VW?? Ans: The high costs of making it are passed on to customers.

A libturd wants higher corporate taxes only because he lacks the IQ to know he will paying them.

We have corporate taxes only to pander to the pure ignorance of liberal Marxists who have been brainwashed to hate the very corporations that provide our jobs, sell us Ipods and surgical robots to save our lives, and jet planes so we can vacation around the world.

See why we are 1000% positive a liberal will be slow, so very very slow.

You know, I have trying to figure you out ever since I saw your first post. I think I have got it. I am going to call Area 51 and have them do a roll call.