Inversion and double taxation..

[healthmyths]

"Inversion"... as used in Obama's latest foray into controversy is where The Obama administration is weighing plans to circumvent Congress and act on its own to curtail tax benefits for United States companies that relocate overseas to lower their tax bills, seeking to stanch a recent wave of so-called corporate inversions...
http://www.nytimes.com/2014/08/06/business/Action-in-washington-on-corporate-inversions.html?_r=0

HOW evil of these corporations! Trying to fulfill their obligation to maximize shareholder values. How evil is it that these evil corporation want to reduce TAX payments which are according to the below chart are the HIGHEST in the world.

When Ireland has a 12.5% rate compared to the USA at nearly 300% more at 39% !

And then AFTER paying the taxes the corporations pay out dividends and the taxation doesn't end there.
Any shareholder receiving a dividend can be taxed either as ordinary income at ordinary income tax rates or at the preferred long-term capital gains tax rate . Dividends are classified either as ordinary dividends or as qualified dividends. All dividends are ordinary dividends. Some dividends are qualified dividends and qualify for the preferred tax rate of 0% or 15%.
How Dividends Are Taxed and Reported on Tax Returns

So if the responsibility of a corporation to a shareholder is to maximize shareholders values by lowering the amount of taxes paid
BEFORE distribution of dividends that WILL be taxed regardless, what is wrong with that?

Again for most of you that don't comprehend..
Assume a company pays the 39% corporate income taxes on $1 million profit that means there is $600,000 left to distribute as
dividends. Assume the company pays out $500,000 in dividends the shareholder after paying another $75,000 taxes net is $425,000.
Now if the corporate tax was half i.e. 20% then there would be $800,000 left to pay out and the company pays out $700,000 the
shareholder still pays 15% but now has 60% more left over! In addition to paying nearly twice in dividend taxes.. $120,000!

How much would it cost the US tax revenue?
Current tax rate 39%
Income to be taxed $1 million and tax of $390,000
If though tax at 20%
Income of $1 million creates tax of $200,000.
Loss tax income : $190,000...
Dividend tax though at 15% on $500,000 paid out is $75,000.
Dividend tax at 15% on $700,000 paid out in dividends is $120,000 or $45,000 more taxes collected from dividends.
Therefore the Total lost taxes to IRS is $145,000...
VERSUS..

Inversion of more companies moving offshore... if this company did so..
TOTAL TAX loss of $ 390,000!


Obviously Obama being the dumb idiot who PREFERS these destructive actions doesn't comprehend this!
I prefer to put 1,300 companies out of business that pay $100 billion in taxes each year and employ 400,000.
I prefer that utilities go bankrupt.
I prefer higher gas prices.
I prefer that utility rates skyrocket.
I prefer the military be disbanded and replaced by a group I control.
"We cannot continue to rely on our military in order to achieve the national security objectives that we've set. We've got to have a civilian national security force that's just as powerful, just as strong, just as well-funded." (emphasis added)
Republicans Seem To Be Surging In Generic Ballot
These are NOT principles and ideas 65% of Americans want their president to have and therefore Most Americans want a change.

 

[healthmyths]

Obviously this thread goes WAY WAY over the heads of most Obamatrons and those that like Obama are so dense when it comes to economics...

 

[healthmyths]

So the words "inversion" and "double-taxation" go over the heads of most of you so here is a number you most of you again won't be able to handle:
$32,000,000,000,000
Some $32 trillion has been hidden in small island banking hubs which host a bevy of trust funds, shell corporations and other tax havens, the Tax Justice Network estimates.
Check Out Who's Hiding $32 Trillion in Offshore Accounts

So what would happen if just 10% would just come back to the USA through a corporate tax forgiveness?
Two previous IRS programs, in 2009 and 2011, brought in more than $4.4 billion in taxes from tens of thousands of tax evaders, said the tax collection agency.
IRS revives offshore tax dodger forgiveness | Reuters

$3.2 trillion brought back to the USA could generate:
A) $1 trillion in capital expenditures..
B) $1 trillion in dividend payments Which would at 15% generate $150 billion in MORE tax revenue..
C) $1 trillion generating at a corporate tax rate of 5% $50 billion more tax revenue...
Just in the B & C cases nearly $200 billion more in TAX REVENUE then the Government currently gets!!!

 

[Listening]

Good luck getting a bite on this one.

The left almost completely ignored your great post on Obamacare.....

Their response:

1. Turn
2. Tuck Tail
3. RUN !!!

 

[Figaro]

I get the impression that Obama's policy aimed at the destruction of the middle class population and small and medium-sized businesses. Middle class and medium-sized businesses are attacking from all sides with all sorts of exactions. An example would be the Obamacare

 

[healthmyths]

I get the impression that Obama's policy aimed at the destruction of the middle class population and small and medium-sized businesses. Middle class and medium-sized businesses are attacking from all sides with all sorts of exactions. An example would be the Obamacare

Absolutely correct!

No president in American history ever ever made statements like these:

I prefer that utility rates skyrocket. "Under my plan of a cap and trade system, electricity rates would necessarily skyrocket"
Obama: I?ll make energy prices ?skyrocket? « Hot Air

"I prefer higher gas prices."
Obama said I'd like higher gas prices, just not so quickly" LiveLeak.com - Obama: Id like higher gas prices, just not so quickly
and backs that belief hiring Energy secretary Chu, who said in 2008...
“Somehow we have to figure out how to boost the price of gasoline to the levels in Europe.”

I prefer the military be disbanded and replaced by a group I control.
"We cannot continue to rely on our military in order to achieve the national security objectives that we've set.
We've got to have a civilian national security force that's just as powerful, just as strong, just as well-funded." (emphasis added)
Republicans Seem To Be Surging In Generic Ballot

Obama desires to destroy the 1,300 health insurance companies that pay $100 billion a year in taxes employing 400,000....
What Obama said:“I happen to be a proponent of a single payer universal health care program.” (applause) Barack Obama on single payer in 2003 | Physicians for a National Health Program

 

[boedicca]

Reminder: Obama was for inversion before he was against it.

President Barack Obama says U.S. corporations that adopt foreign addresses to avoid taxes are unpatriotic. His own administration helped one $20 billion American company do just that.

As part of the bailout of the auto industry in 2009, Obama's Treasury Department authorized spending $1.7 billion of government funds to get a bankrupt Michigan parts-maker back on its feet -- as a British company.

While executives continue to run Delphi Automotive from a Detroit suburb, the paper headquarters in England potentially reduces the company's U.S. tax bill by as much as $110 million a year.

Obama aides let Delphi avoid taxes with 'inversion' tactic now assailed

 

[Machaut]

Legal tax evasion--euphemistically called "tax planning" in the financial world--is an essential component to American society today, alongside the litigiousness that has given us such golden memories of spilled McDonald's coffee and severed fingers in Wendy's chili.

People criticize both of those things relentlessly, yet frequently make use of them in some form. Tax planning has given too many Americans tax credits for supporting their children rather than abandoning them, and the threat of financially damaging lawsuits deters many instances of someone in a position of power (an employer, a school principal, or a landlord) violating the rights of someone under their power (an employee or applicant, a student, or a tenant). Getting rid of them entirely would fix our system, but it would require a near-complete overhaul of American values and our very way of thinking. Before we can remove the injustices in our laws, we must first tear them up by their roots, which run deep into our culture.

And when you look at who benefits the most under the current system--these corporations that save billions in taxes each year, the people walking through the revolving doors in Washington who magically wind up with cushy executive positions at private companies or vice-versa--remember who sowed the seed of those roots in the first place.

 

[The Rabbi]

It is a good example of how conservatives and liberals approach a problem.
PROBLEM: US companies are reincorporating overseaas to avoid onerous US taxes.

Conservatives: The reason they are doing this is because of uncompetitive US tax rates and policies. Let's change those tax rates and policies and provide more incentive to stay here.
Liberals: Let's punish those companies by adding more taxes and regulations.

That's it in a nutshell.

 

[healthmyths]

Legal tax evasion--euphemistically called "tax planning" in the financial world--is an essential component to American society today, alongside the litigiousness that has given us such golden memories of spilled McDonald's coffee and severed fingers in Wendy's chili.

People criticize both of those things relentlessly, yet frequently make use of them in some form. Tax planning has given too many Americans tax credits for supporting their children rather than abandoning them, and the threat of financially damaging lawsuits deters many instances of someone in a position of power (an employer, a school principal, or a landlord) violating the rights of someone under their power (an employee or applicant, a student, or a tenant). Getting rid of them entirely would fix our system, but it would require a near-complete overhaul of American values and our very way of thinking. Before we can remove the injustices in our laws, we must first tear them up by their roots, which run deep into our culture.

And when you look at who benefits the most under the current system--these corporations that save billions in taxes each year, the people walking through the revolving doors in Washington who magically wind up with cushy executive positions at private companies or vice-versa--remember who sowed the seed of those roots in the first place.

All that has very very little to do with the simple fact I presented.
A tax forgiveness program for the $32 trillion held off shore would if just 10% came back without any doubt GENERATE
MORE tax revenue then that those offshore trillions are generating now!

It is that simple.
By providing a one time tax forgiveness trillions would flow back to the USA and billions would flow into the tax coffers.
Versus the idiocy of MORE taxes which is the Obama solution!

 

[Machaut]

Legal tax evasion--euphemistically called "tax planning" in the financial world--is an essential component to American society today, alongside the litigiousness that has given us such golden memories of spilled McDonald's coffee and severed fingers in Wendy's chili.

People criticize both of those things relentlessly, yet frequently make use of them in some form. Tax planning has given too many Americans tax credits for supporting their children rather than abandoning them, and the threat of financially damaging lawsuits deters many instances of someone in a position of power (an employer, a school principal, or a landlord) violating the rights of someone under their power (an employee or applicant, a student, or a tenant). Getting rid of them entirely would fix our system, but it would require a near-complete overhaul of American values and our very way of thinking. Before we can remove the injustices in our laws, we must first tear them up by their roots, which run deep into our culture.

And when you look at who benefits the most under the current system--these corporations that save billions in taxes each year, the people walking through the revolving doors in Washington who magically wind up with cushy executive positions at private companies or vice-versa--remember who sowed the seed of those roots in the first place.

All that has very very little to do with the simple fact I presented.

If you believe this, then I don't think you completely understand your own points.

A tax forgiveness program for the $32 trillion held off shore would if just 10% came back without any doubt GENERATE
MORE tax revenue then that those offshore trillions are generating now!

It is that simple.
By providing a one time tax forgiveness trillions would flow back to the USA and billions would flow into the tax coffers.

"Tax forgiveness"? Are you alleging that these off-shorers are legally required to be paying taxes on their trillions, and yet aren't? Or are you trying to say that they're not required to pay anything back right now, but should be lured back by being exempted from taxation somehow?

Versus the idiocy of MORE taxes which is the Obama solution!

"The idiocy of more taxes"? "More taxes" as in the creation of additional forms of taxation, collected on different transactions that are not currently subject to taxation? Or "more taxes" as in levying higher taxes on transactions that are already yielding tax revenue for the US government?

 

[RoshawnMarkwees]

If we could abandon this idiotic socialistic green energy scam agenda and allow for the flooding of the fossil fuel market our economy would expand exponentially and the resulting increase in gov revenue would make offshore investment essentially moot.
Evict obama and remove all democrats.

 

[Dont Taz Me Bro]

When a Democrat does it, well, it's just different.

 

[bendog]

But he's a professor.

 

[healthmyths]

Legal tax evasion--euphemistically called "tax planning" in the financial world--is an essential component to American society today, alongside the litigiousness that has given us such golden memories of spilled McDonald's coffee and severed fingers in Wendy's chili.

People criticize both of those things relentlessly, yet frequently make use of them in some form. Tax planning has given too many Americans tax credits for supporting their children rather than abandoning them, and the threat of financially damaging lawsuits deters many instances of someone in a position of power (an employer, a school principal, or a landlord) violating the rights of someone under their power (an employee or applicant, a student, or a tenant). Getting rid of them entirely would fix our system, but it would require a near-complete overhaul of American values and our very way of thinking. Before we can remove the injustices in our laws, we must first tear them up by their roots, which run deep into our culture.

And when you look at who benefits the most under the current system--these corporations that save billions in taxes each year, the people walking through the revolving doors in Washington who magically wind up with cushy executive positions at private companies or vice-versa--remember who sowed the seed of those roots in the first place.

All that has very very little to do with the simple fact I presented.

If you believe this, then I don't think you completely understand your own points.

A tax forgiveness program for the $32 trillion held off shore would if just 10% came back without any doubt GENERATE
MORE tax revenue then that those offshore trillions are generating now!

It is that simple.
By providing a one time tax forgiveness trillions would flow back to the USA and billions would flow into the tax coffers.

"Tax forgiveness"? Are you alleging that these off-shorers are legally required to be paying taxes on their trillions, and yet aren't? Or are you trying to say that they're not required to pay anything back right now, but should be lured back by being exempted from taxation somehow?

Versus the idiocy of MORE taxes which is the Obama solution!

"The idiocy of more taxes"? "More taxes" as in the creation of additional forms of taxation, collected on different transactions that are not currently subject to taxation? Or "more taxes" as in levying higher taxes on transactions that are already yielding tax revenue for the US government?

Any form of encouragement to bring back part of the offshore parked trillions will generate more tax revenue then currently is generated being parked offshore!

 

[zeke]

"Inversion"... as used in Obama's latest foray into controversy is where The Obama administration is weighing plans to circumvent Congress and act on its own to curtail tax benefits for United States companies that relocate overseas to lower their tax bills, seeking to stanch a recent wave of so-called corporate inversions...
http://www.nytimes.com/2014/08/06/business/Action-in-washington-on-corporate-inversions.html?_r=0

HOW evil of these corporations! Trying to fulfill their obligation to maximize shareholder values. How evil is it that these evil corporation want to reduce TAX payments which are according to the below chart are the HIGHEST in the world.

When Ireland has a 12.5% rate compared to the USA at nearly 300% more at 39% !

And then AFTER paying the taxes the corporations pay out dividends and the taxation doesn't end there.
Any shareholder receiving a dividend can be taxed either as ordinary income at ordinary income tax rates or at the preferred long-term capital gains tax rate . Dividends are classified either as ordinary dividends or as qualified dividends. All dividends are ordinary dividends. Some dividends are qualified dividends and qualify for the preferred tax rate of 0% or 15%.
How Dividends Are Taxed and Reported on Tax Returns

So if the responsibility of a corporation to a shareholder is to maximize shareholders values by lowering the amount of taxes paid
BEFORE distribution of dividends that WILL be taxed regardless, what is wrong with that?

Again for most of you that don't comprehend..
Assume a company pays the 39% corporate income taxes on $1 million profit that means there is $600,000 left to distribute as
dividends. Assume the company pays out $500,000 in dividends the shareholder after paying another $75,000 taxes net is $425,000.
Now if the corporate tax was half i.e. 20% then there would be $800,000 left to pay out and the company pays out $700,000 the
shareholder still pays 15% but now has 60% more left over! In addition to paying nearly twice in dividend taxes.. $120,000!

How much would it cost the US tax revenue?
Current tax rate 39%
Income to be taxed $1 million and tax of $390,000
If though tax at 20%
Income of $1 million creates tax of $200,000.
Loss tax income : $190,000...
Dividend tax though at 15% on $500,000 paid out is $75,000.
Dividend tax at 15% on $700,000 paid out in dividends is $120,000 or $45,000 more taxes collected from dividends.
Therefore the Total lost taxes to IRS is $145,000...
VERSUS..

Inversion of more companies moving offshore... if this company did so..
TOTAL TAX loss of $ 390,000!


Obviously Obama being the dumb idiot who PREFERS these destructive actions doesn't comprehend this!
I prefer to put 1,300 companies out of business that pay $100 billion in taxes each year and employ 400,000.
I prefer that utilities go bankrupt.
I prefer higher gas prices.
I prefer that utility rates skyrocket.
I prefer the military be disbanded and replaced by a group I control.
"We cannot continue to rely on our military in order to achieve the national security objectives that we've set. We've got to have a civilian national security force that's just as powerful, just as strong, just as well-funded." (emphasis added)
Republicans Seem To Be Surging In Generic Ballot
These are NOT principles and ideas 65% of Americans want their president to have and therefore Most Americans want a change.




View attachment 31013

What a lying bitch you are.

And oh that Obama. He has the OBLIGATION to try and manage this countries finances, pay the bill and find the income to do those things.

Those are his obligations to all of us. The fact he is fighting with corporations while he is trying to do HIS job means that he is trying to do his job

Why you got a problem with the President doing his job?

And quit lying about the tax rate. Or at least be honest enough to admit that the effective tax rate corporations pay is not the highest in the world.

You might also want to admit that these corporations are doing business in the largest consume market in the world and paying their taxes is a cost of business.

You do understand the idea of a "cost of doing business" don't cha? Probably not.

 

[JakeStarkey]

Maximizing share holder value at the expense of ignoring the opportunities to do business and benefit from doing in the US?

Fuck that: want to do business in the US, have to pay fair share. You pay to play.

 

[Moonglow]

Isn't it just amazing how so called conservatives do not believe in corporate patriotism in todays world, yet just 75 years ago they had no problem with the idea...
We must think of the investor and profit first, since we hold no endearment for the nation that helpls to build that wealth.

So now consumers are and should be forced to buy foreign produced goods, why? Because the rich people claim we should.

the WWII generation saw 90% tax rates on incomes both personally and with business, yet they were able to make a profit while producing in the USA and were proud to say and do so..Yet today, greed and the almighty dollar is the only focus of business of Americans that start in America to make more profit, even if it screws the average American and forces the burden of taxes and infrastructure upon them...

You peoples greed should make you feel better, superior and not in the least to be associated with evil characters in movies.. HA! That's not what the average citizen is thinking..
The OP author is a little shy on ideas but redundancy of infrastructure, R&D, Sciences etc. but never does he realize that these items are done at taxpayers cost and the benefit goes directly to corporate coiffeurs and benefits their bottom line.. Yet the rich don't want to pay taxes, only lip service..

 

[Manonthestreet]

Obama loves him an inversion.... To really understand the rot that is Democrats’ current crusade against corporate inversions, one need only look to Delphi. That is the automotive supplier that was once owned by General Motors, and that got caught up in GM’s 2009 bankruptcy by experiencing one of its own.

Via James Taranto of the Wall Street Journal, Bloomberg reports that when the Obama White House took over the running of GM and was tasked with saving both GM and its supply base, it helped Delphi establish itself on paper as a company headquartered in Britain. And why, you ask? Why, so it could avoid paying the U.S. corporate tax of 35 percent on earnings made overseas. In other words, the Obama White House told Delphi to undertake a corporate inversion: iOwnTheWorld.com » Blog Archive » In 2009, Obama Administration told Delphi to avoid U.S. taxes via corporate inversion

 

[JakeStarkey]

The administration was wrong obviously.

Any corporation that practices inversion should face corporate execution.