Obama to propose tax code changes

[DukeN]

http://news.yahoo.com/s/nm/200...us_obama_economy_taxes

Waiting to see the neocons response to this one. I think this is a good idea for the US economy (as a Canadian it might affect us adversely).

About time some some of the megacorps had financial accountability for offshore tax havens.

 

[spidey07]

It's real easy. If you put up barriers to productivity like he's proposing the producers will just go elsewhere.

This pretty much sums it up:
"The letter, signed by 200 companies and trade groups like the U.S. Chamber of Commerce, said the firms would not be on a level playing field with international rivals, many of which are not required to pay taxes at home on overseas entities."

 

[Genx87]

Dubai must be licking their chops

 

[Phokus]

Good. I'm glad we're seeing some success at finding tax evaders.

 

[fskimospy]

Originally posted by: Genx87
Dubai must be licking their chops

I doubt Dubai is doing much of anything outside of shaking a change cup right now. Their entire economy was completely unsustainable and has suffered an epic collapse.

Oh, and color me shocked that businesses and the COC are against taxing businesses.

 

[Fear No Evil]

Its almost like Obama wants the Republicans to win in 2 years.

 

[ElFenix]

so how many companies are going to reincorporate in the bahamas?


here's an idea: don't bother taxing corporations anyway

 

[Hacp]

I didn't read the article just yet but knowing Obama, I think I know what he's going to propose. More taxes. I'll edit this post if I'm wrong.

 

[Slew Foot]

Anyone find it ironic that Geithner is announcing a plan to go after tax cheats?

 

[Genx87]

Originally posted by: Slew Foot
Anyone find it ironic that Geithner is announcing a plan to go after tax cheats?

Not surprising and very comical.

 

[her209]

Paying taxes on money made abroad.

*GASP*

 

[ayabe]

Originally posted by: spidey07
It's real easy. If you put up barriers to productivity like he's proposing the producers will just go elsewhere.

This pretty much sums it up:
"The letter, signed by 200 companies and trade groups like the U.S. Chamber of Commerce, said the firms would not be on a level playing field with international rivals, many of which are not required to pay taxes at home on overseas entities."

Barriers to productivity? What a joke.

Just like the super high corporate tax rate is a huge drag on the economy even though the effective rate is less than half that.

Well they can have the rate lowered, but they don't get to abuse the law anymore, which is great PR for them and will result in a net increase in revenues since their effective rate is going to be higher.

Oh well guess they shouldn't have abused the system, going to be paying more in the end now.

 

[smashp]

I actually read the article and the changes being proposed and I dont see a Single problem with any of it. In fact, I wish they would add provisions to it.

I also find it hilarious the wackos in here defending Tax evasion and corporate funny accounting that allows them to cheat.

 

[ElFenix]

Originally posted by: her209
Paying taxes on money made abroad.

*GASP*

the US is the only country in the world that taxes citizens on foreign income, iirc.

 

[JeffreyLebowski]

Originally posted by: ayabe

Originally posted by: spidey07
It's real easy. If you put up barriers to productivity like he's proposing the producers will just go elsewhere.

This pretty much sums it up:
"The letter, signed by 200 companies and trade groups like the U.S. Chamber of Commerce, said the firms would not be on a level playing field with international rivals, many of which are not required to pay taxes at home on overseas entities."

Barriers to productivity? What a joke.

Just like the super high corporate tax rate is a huge drag on the economy even though the effective rate is less than half that.

Well they can have the rate lowered, but they don't get to abuse the law anymore, which is great PR for them and will result in a net increase in revenues since their effective rate is going to be higher.

Oh well guess they shouldn't have abused the system, going to be paying more in the end now.

They won't be paying more in the end. WE will. They will just raise the price on their goods and services to offset the increase in tax liabilities.

All Dear Leader is doing is "sticking it to the man" so his dumb ass followers will think he is doing something to help, but in the end, he's raising the cost of living on everyone.

 

[EagleKeeper]

The US government is dictating to foriegn countries on how those countries should run their system.

Then they want to penalize a compay for investing foriegn funds in their foriegn operations?

The Dems wanted the US out of meddling in other couintries affairs

 

[smashp]

Originally posted by: JeffreyLebowski

Originally posted by: ayabe

Originally posted by: spidey07
It's real easy. If you put up barriers to productivity like he's proposing the producers will just go elsewhere.

This pretty much sums it up:
"The letter, signed by 200 companies and trade groups like the U.S. Chamber of Commerce, said the firms would not be on a level playing field with international rivals, many of which are not required to pay taxes at home on overseas entities."

Barriers to productivity? What a joke.

Just like the super high corporate tax rate is a huge drag on the economy even though the effective rate is less than half that.

Well they can have the rate lowered, but they don't get to abuse the law anymore, which is great PR for them and will result in a net increase in revenues since their effective rate is going to be higher.

Oh well guess they shouldn't have abused the system, going to be paying more in the end now.

They won't be paying more in the end. WE will. They will just raise the price on their goods and services to offset the increase in tax liabilities.

All Dear Leader is doing is "sticking it to the man" so his dumb ass followers will think he is doing something to help, but in the end, he's raising the cost of living on everyone.

I call BS, they wont be raising the "Prices" if they wish to stay competitive.

Does anyone here honestly think its ok for a corporation to Deduct their expenses of moving a factory Overseas against their US tax liabilities and then be allowed to funnel that "profit" through the foreign subsidiary to avoid taxation on the profit?

keep on teabaggin each other

 

[Michael]

the US is the only country in the world that taxes citizens on foreign income, iirc.

I think that China is now doing it as well as they recently changed their tax laws and many are modeled on the US.

I think the current model of taxing US residents who are living overseas as if they were living in the USA hard to understand. It makes it very expensive to have American expats. If someone is living in another country and paying that county's taxes, why pay US taxes as well?

There also needs to be an understanding of tax evasion vs. the economic reality of doing business outside the USA. Tax evasion is setting up a BVI company just to run business through it that has nothing to do with the BVI. If my plant is in China and I'm selling in China and you tax that in the USA, you put the American company at a huge disadvantage compared to other countries.

There certainly are tons of issues with tax evasion. That should be gone after strongly. I would have to see exactly what else they're proposing to do to decide if they're just making it harder to do business or if they're really just closing loopholes.

Michael

 

[Phokus]

Originally posted by: Common Courtesy
The US government is dictating to foriegn countries on how those countries should run their system.

Then they want to penalize a compay for investing foriegn funds in their foriegn operations?

The Dems wanted the US out of meddling in other couintries affairs

Please explain how asking corporations to pay taxes on income earned abroad is meddling in foreign government affairs.

 

[smashp]

Originally posted by: Common Courtesy
The US government is dictating to foriegn countries on how those countries should run their system.

Then they want to penalize a compay for investing foriegn funds in their foriegn operations?

The Dems wanted the US out of meddling in other couintries affairs

They will be able to continue investing Foreign Funds in their foreign operations. They just wont be able to deduct foreign expences against their domestic liabilities.


Sounds fair to me...

Or maybe we should just nullify and neutralize these companies patents that the US government protect for them if they cant play by the rules. If they want the US courts, to protect their IP then they need to be true to the old USA.

 

[Genx87]

Originally posted by: smashp

Originally posted by: Common Courtesy
The US government is dictating to foriegn countries on how those countries should run their system.

Then they want to penalize a compay for investing foriegn funds in their foriegn operations?

The Dems wanted the US out of meddling in other couintries affairs

They will be able to continue investing Foreign Funds in their foreign operations. They just wont be able to deduct foreign expences against their domestic liabilities.


Sounds fair to me...

Or maybe we should just nullify and neutralize these companies patents that the US government protect for them if they cant play by the rules. If they want the US courts, to protect their IP then they need to be true to the old USA.

There are international treaties surrounding IP.

 

[ayabe]

Originally posted by: JeffreyLebowski

Originally posted by: ayabe

Originally posted by: spidey07
It's real easy. If you put up barriers to productivity like he's proposing the producers will just go elsewhere.

This pretty much sums it up:
"The letter, signed by 200 companies and trade groups like the U.S. Chamber of Commerce, said the firms would not be on a level playing field with international rivals, many of which are not required to pay taxes at home on overseas entities."

Barriers to productivity? What a joke.

Just like the super high corporate tax rate is a huge drag on the economy even though the effective rate is less than half that.

Well they can have the rate lowered, but they don't get to abuse the law anymore, which is great PR for them and will result in a net increase in revenues since their effective rate is going to be higher.

Oh well guess they shouldn't have abused the system, going to be paying more in the end now.

They won't be paying more in the end. WE will. They will just raise the price on their goods and services to offset the increase in tax liabilities.

All Dear Leader is doing is "sticking it to the man" so his dumb ass followers will think he is doing something to help, but in the end, he's raising the cost of living on everyone.

Right, just like the fact that the cost of manufacturing oversees is so low that it would bring on a drastic reduction in the price of consumer goods.

That hasn't happened and never will, they pocketed the difference and have been doing so for years.

Sorry that they've been padding their earnings reports with this revenue, they'll have to adjust to the new reality of 2009.

 

[MrChad]

Originally posted by: ayabe
Right, just like the fact that the cost of manufacturing oversees is so low that it would bring on a drastic reduction in the price of consumer goods.

That hasn't happened and never will, they pocketed the difference and have been doing so for years.

Sorry that they've been padding their earnings reports with this revenue, they'll have to adjust to the new reality of 2009.

How do you think Wal-Mart is able to offer lower prices than almost every other retailer and remain highly profitable?

 

[Genx87]

Originally posted by: ayabe

Originally posted by: JeffreyLebowski

Originally posted by: ayabe

Originally posted by: spidey07
It's real easy. If you put up barriers to productivity like he's proposing the producers will just go elsewhere.

This pretty much sums it up:
"The letter, signed by 200 companies and trade groups like the U.S. Chamber of Commerce, said the firms would not be on a level playing field with international rivals, many of which are not required to pay taxes at home on overseas entities."

Barriers to productivity? What a joke.

Just like the super high corporate tax rate is a huge drag on the economy even though the effective rate is less than half that.

Well they can have the rate lowered, but they don't get to abuse the law anymore, which is great PR for them and will result in a net increase in revenues since their effective rate is going to be higher.

Oh well guess they shouldn't have abused the system, going to be paying more in the end now.

They won't be paying more in the end. WE will. They will just raise the price on their goods and services to offset the increase in tax liabilities.

All Dear Leader is doing is "sticking it to the man" so his dumb ass followers will think he is doing something to help, but in the end, he's raising the cost of living on everyone.

Right, just like the fact that the cost of manufacturing oversees is so low that it would bring on a drastic reduction in the price of consumer goods.

That hasn't happened and never will, they pocketed the difference and have been doing so for years.

Sorry that they've been padding their earnings reports with this revenue, they'll have to adjust to the new reality of 2009.

Really? Compare the cost of items from 20 and 30 years ago to today. How much was a 25 inche color tv 20 years ago compared to today? How about microwaves, air conditioning units, features in cars, airline tickets ect ect.

We have seen a reduction in the cost of consumer goods over the past 30 years which has drastically raised our standard of living in the process.

Likewise the cost of a highly taxed and punished industry has seen their price of product go through the roof. That would be cigarettes.

An offshored or relatively highly foreign based manufacturing product that has seen drastic reduction in prices are computers. 20 years ago the entry model was 1500 with middle being 2500 and high end 3500+. Today entry model can be had for 200 bucks. All while inflation should have pushed the costs higher.

 

[Michael]

Does anyone here honestly think its ok for a corporation to Deduct their expenses of moving a factory Overseas against their US tax liabilities and then be allowed to funnel that "profit" through the foreign subsidiary to avoid taxation on the profit?

I'm not sure I understand your question.

I have a factory in the USA. I decide it is not economic to continue to operate the factory. I close it. In closing it, I incur expenses. These expenses are in the USA and related to my USA operations. In the past, I have paid higher taxes as I did not recognize the expense coming in the future for the closing down of the plant. Now it is all trued up.

In what way would it not be OK to deduct the expense in my US tax returns?

If I build a factory in China and sell to Chinese and pay Chinese taxes (which are pretty high, btw), what does that have to do with "profits" from closing a factory? If I build in China and then import into the USA and sell there, I'll pay US taxes. So what is the issue?

Michael