Author Topic: To Keep Corporations Here, Why Not Cut Their Taxes? By ROBERT J. SAMUELSON  (Read 236 times)

0 Members and 1 Guest are viewing this topic.

Offline mystery-ak

  • Owner
  • Administrator
  • Hero Member
  • ******
  • Posts: 258,931

Support the USO

Online Oceander

  • Technical
  • Hero Member
  • ****
  • Posts: 48,223
  • TBR Illuminati
There's actually one possibility that might alleviate - or at least frustrate - a lot of the silliness (assuming arguendo that international tax planning is silliness):  permit, or even require, consolidated tax returns for US corporations, whether the corporation is a parent or a subsidiary.  The only novelty would be the provision that if the parent corporation is a foreign entity, then the sections of the IRC governing the taxation of foreign corporations - particularly the income-sourcing provisions - would apply to the consolidated return; if the parent corporation is a US entity, then consolidation would bring all of the worldwide income into the US tax base for the tax year in which earned/accrued, with foreign tax credits (or deductions for foreign taxes paid/accrued) being taken in the same tax year in which those foreign taxes were paid/accrued.

Online truth_seeker

  • Hero Member
  • ****
  • Posts: 19,975
  • Common Sense Results Oriented Conservative Veteran
    • The place where argument addicts can go
There's actually one possibility that might alleviate - or at least frustrate - a lot of the silliness (assuming arguendo that international tax planning is silliness):  permit, or even require, consolidated tax returns for US corporations, whether the corporation is a parent or a subsidiary.  The only novelty would be the provision that if the parent corporation is a foreign entity, then the sections of the IRC governing the taxation of foreign corporations - particularly the income-sourcing provisions - would apply to the consolidated return; if the parent corporation is a US entity, then consolidation would bring all of the worldwide income into the US tax base for the tax year in which earned/accrued, with foreign tax credits (or deductions for foreign taxes paid/accrued) being taken in the same tax year in which those foreign taxes were paid/accrued.
So you would compel every foreign corporation doing business in the US to file a consolidated return? Daimler Benz, BMW, Fiat, VW Group, Toyota, Honda, Nissan, Hyundai, Volvo etc..?

Likewise British Petroleum, Royal Dutch Shell, etc.  H & M clothing retailer? Ikea retailer home goods?

Not going to happen.  The US is almost alone, trying to tax foreign source income, period.

Lower US corporate rates, and that will stop the firms from wanting to go elsewhere.

The companies, their CPAs and attorneys will find "workarounds" for the laws because loopholes are almost built in, by design and intent.
"God must love the common man, he made so many of them.�  Abe Lincoln

Offline PzLdr

  • Hero Member
  • ****
  • Posts: 3,421
Why not cut their taxes? Because then you have less money to buy the votes you think you need.
Hillary's Self-announced Qualifications: She Stood Up To Putin...She Sits to Pee


Share me

Digg  Facebook  SlashDot  Delicious  Technorati  Twitter  Google  Yahoo
Smf