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Obama's tax plan all but promises more outsourcing

Barry Bosworth, an economist in Washington, D.C., at the Brookings Institution research center, said many software companies such as Microsoft have exploited tax and trade rules in the U.S. and other countries to achieve a low overall tax rate.

Typically, he said, a company like Microsoft develops a product like Windows in the United States and deducts those costs against U.S. income. It then transfers the technology to a subsidiary in Ireland, where corporate tax rates are lower, without charging licensing fees. The company then assigns its foreign sales to the Irish subsidiary so it doesn't have to claim the income in the U.S.
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How dare Obama close these exploits and loopholes?
 
If it weren't for outsourcing, my company wouldn't do as well, and I probably wouldn't have a job (as a software engineer)
 
Originally posted by: jpeyton
Barry Bosworth, an economist in Washington, D.C., at the Brookings Institution research center, said many software companies such as Microsoft have exploited tax and trade rules in the U.S. and other countries to achieve a low overall tax rate.

Typically, he said, a company like Microsoft develops a product like Windows in the United States and deducts those costs against U.S. income. It then transfers the technology to a subsidiary in Ireland, where corporate tax rates are lower, without charging licensing fees. The company then assigns its foreign sales to the Irish subsidiary so it doesn't have to claim the income in the U.S.
Click to expand...
How dare Obama close these exploits and loopholes?
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This "solution" wouldn't close the loopholes and would cripple international business for US companies even more than it already is.
 
Originally posted by: ElFenix
solution: get rid of business taxes
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Agreed. Business will find a way to keep from getting robbed and if that means moving jobs or whatnot elsewhere that's what they'll do.

Eliminate business taxes and you'd see this economy explode.
 
How dare Obama close these exploits and loopholes?
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Since when is avoiding double jeopardy (taxing the same money twice) an exploit or loophole. If the money never makes it back here, it should not be taxed here. Plus, companies dont even pay taxes, their consumers do. It is a zero sum game.

So, not only will more highly desireable jobs leave but prices for almost all major products will go up. The Democrats sure as fuck don't know how simple economics work.
 
Originally posted by: irwincur
How dare Obama close these exploits and loopholes?
Click to expand...

Since when is avoiding double jeopardy (taxing the same money twice) an exploit or loophole. If the money never makes it back here, it should not be taxed here. Plus, companies dont even pay taxes, their consumers do. It is a zero sum game.

So, not only will more highly desireable jobs leave but prices for almost all major products will go up. The Democrats sure as fuck don't know how simple economics work.
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Im glad someone gets it...
 
Empty threats by companies who enjoy outsourcing US jobs and tax loopholes.

Here are some croc tears Mr. Ballmer.
 
Originally posted by: jpeyton
Empty threats by companies who enjoy outsourcing US jobs and tax loopholes.
Here are some croc tears Mr. Ballmer.
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So you believe that a global company should pay taxes here in the US for every item sold anywhere?
 
Originally posted by: Atreus21
Originally posted by: ElFenix
solution: get rid of business taxes
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I think you just made democrats vomit.
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But you made the PaulBots happy.

Now just suggest that we eliminate the IRS and you'll get your merit badge.
 
Originally posted by: jpeyton
Originally posted by: Atreus21
Originally posted by: ElFenix
solution: get rid of business taxes
Click to expand...

I think you just made democrats vomit.
Click to expand...
But you made the PaulBots happy.

Now just suggest that we eliminate the IRS and you'll get your merit badge.
Click to expand...

You seem to have missed my question.
 
Originally posted by: Atreus21
Originally posted by: ElFenix
solution: get rid of business taxes
Click to expand...

I think you just made democrats vomit.
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actually the lefties are starting to figure out that business taxes are mostly borne by the blue collar and lower down workers, even moreso than the consumers (because consumers can easily substitute products whereas getting a new job is a very significant hurdle). though explaining that to the average american is probably too difficult for your average politician.
 
Originally posted by: jpeyton
Originally posted by: Atreus21
Originally posted by: ElFenix
solution: get rid of business taxes
Click to expand...

I think you just made democrats vomit.
Click to expand...
But you made the PaulBots happy.

Now just suggest that we eliminate the IRS and you'll get your merit badge.
Click to expand...

In case you've forgotten, it wasn't just Ron Paul who advocated the FairTax.
 
Overtaxation as well as the high standard of living is responsible for outsourcing. The solution is a two parter. First, get rid of the minimum wage so the SOL will fall more in line with those of other countries. Next, stop taxing American businesses!
 
Originally posted by: Atreus21
Originally posted by: jpeyton
Originally posted by: Atreus21
Originally posted by: ElFenix
solution: get rid of business taxes
Click to expand...

I think you just made democrats vomit.
Click to expand...
But you made the PaulBots happy.

Now just suggest that we eliminate the IRS and you'll get your merit badge.
Click to expand...

In case you've forgotten, it wasn't just Ron Paul who advocated the FairTax.
Click to expand...

Hucklebee and many credible economists support the Fair Tax.
 
Barry Bosworth, an economist in Washington, D.C., at the Brookings Institution research center, said many software companies such as Microsoft have exploited tax and trade rules in the U.S. and other countries to achieve a low overall tax rate.

Typically, he said, a company like Microsoft develops a product like Windows in the United States and deducts those costs against U.S. income. It then transfers the technology to a subsidiary in Ireland, where corporate tax rates are lower, without charging licensing fees. The company then assigns its foreign sales to the Irish subsidiary so it doesn't have to claim the income in the U.S.
Click to expand...
Is Microsoft sending the subsidiary the source code which they then recompile to a finished product?
 
Originally posted by: bsobel
Originally posted by: jpeyton
Empty threats by companies who enjoy outsourcing US jobs and tax loopholes.
Here are some croc tears Mr. Ballmer.
Click to expand...

So you believe that a global company should pay taxes here in the US for every item sold anywhere?
Click to expand...

Anyone?
 
Barry Bosworth, an economist in Washington, D.C., at the Brookings Institution research center, said many software companies such as Microsoft have exploited tax and trade rules in the U.S. and other countries to achieve a low overall tax rate.

Typically, he said, a company like Microsoft develops a product like Windows in the United States and deducts those costs against U.S. income. It then transfers the technology to a subsidiary in Ireland, where corporate tax rates are lower, without charging licensing fees. The company then assigns its foreign sales to the Irish subsidiary so it doesn't have to claim the income in the U.S.
Click to expand...

I'd like to see him (the author) justify his above underlined claim.

We've long had Transfer Pricing Rules to prevent the kind of thing he's claiming.

A US company can't transfer products/assets to a foreign affiliate (subsidiary) without charging FMV for it/them. Otherwise 'income' is transfered out of the USA (and it's taxation) and is taxed only in the lower foreign taxing country.

I.e., he's talking BS.

Fern
 
Originally posted by: jpeyton
Empty threats by companies who enjoy outsourcing US jobs and tax loopholes.
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So you're saying this company that enjoys outsourcing US jobs is just making making an "empty threat" to offshore positions?
 
Originally posted by: glenn1
Originally posted by: jpeyton
Empty threats by companies who enjoy outsourcing US jobs and tax loopholes.
Click to expand...

So you're saying this company that enjoys outsourcing US jobs is just making making an "empty threat" to offshore positions?
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No, its an empty threat because they would offshore the jobs anyway regardless of the tax situation.
 
Originally posted by: ElFenix
solution: get rid of business taxes
Click to expand...
If a business didn't have to pay taxes here in the US, wouldn't it make more sense to move the jobs (costs) overseas to maximize its profits here?
 
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