Land sales & Taxation

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Brute 23

Brute 23
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I never said evil. I also never said they were doing anything illegal. All I said is the law needs to be changed to make it equitable.
I think you are missing that when that corp's money is paid in salaries or dividends or draws or what ever it is taxed. Many have considered corp taxes double taxation.
 

sstterry

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I think you are missing that when that corp's money is paid in salaries or dividends or draws or what ever it is taxed. Many have considered corp taxes double taxation.
I agree on the double taxation and when it is paid out in salaries it gets taxed, but what about when they stash it out of the US and use it for stock buybacks or other things. Profits that are not taxed.
 

Brute 23

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I agree on the double taxation and when it is paid out in salaries it gets taxed, but what about when they stash it out of the US and use it for stock buybacks or other things. Profits that are not taxed.
I have to problem with buy backs.

On "stashing money out of the country" I would have to see more on that but I bet that could be addressed individually.

It won't though. The few monster corps doing this have huge power. People need to not get sucked in to chain letter or media hype about corps. There are tons of small mom and pops using corps and you will only hurt them more with these blanket taxes and nonsense. The rich will always be rich. You won't tax them in to poverty. Taxes and regulations only prevent the the small man from joining them one day.
 

sstterry

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I have to problem with buy backs.

On "stashing money out of the country" I would have to see more on that but I bet that could be addressed individually.

It won't though. The few monster corps doing this have huge power. People need to not get sucked in to chain letter or media hype about corps. There are tons of small mom and pops using corps and you will only hurt them more with these blanket taxes and nonsense. The rich will always be rich. You won't tax them in to poverty. Taxes and regulations only prevent the the small man from joining them one day.
I never said that Corporations are bad and I have no problem with the mom and pop corps, the S corps, or the LLCs. But the tax law is the same for all of them. Taxes are a necessary evil and if we closed the loopholes for the big guys, it makes it much easier for the little guys. Look at some of the links I posted above. I personally think the Corporate rate is way too high, close the loopholes and it can be made much more reasonable.
 

HDRider

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On "stashing money out of the country" I would have to see more on that but I bet that could be addressed individually.
They don't bring the money back to the US because our corporate tax rates are higher. They in turn invest the money in the country where it was earned, not here.
 

Brute 23

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They don't bring the money back to the US because our corporate tax rates are higher. They in turn invest the money in the country where it was earned, not here.
I understand but I don't know enough about the details of how they do it. I assume it's getting written off as an investment back in to the business?
 

HDRider

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I understand but I don't know enough about the details of how they do it. I assume it's getting written off as an investment back in to the business?
It is very simple. My office neighbor was our tax director and we talked about it all the time.

Say I sell $1,000 worth of stuff in France. France taxes us at 26.5%. Our rate was 35% (highest of any industrialized country) until Trump fixed it to 21%.

At 35%, when I bring it back to the US I get credit for the French 26.5% and have to pay the delta of 8.5% to the US government. If I leave it in France I do not have to pay the other 8.5%. So I leave the money in France, and spend it in France.
 

Brute 23

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It is very simple. My office neighbor was our tax director and we talked about it all the time.

Say I sell $1,000 worth of stuff in France. France taxes us at 26.5%. Our rate was 35% (highest of any industrialized country) until Trump fixed it to 21%.

At 35%, when I bring it back to the US I get credit for the French 26.5% and have to pay the delta of 8.5% to the US government. If I leave it in France I do not have to pay the other 8.5%. So I leave the money in France, and spend it in France.
What happens now that ours is lower at 21%?
 

HDRider

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What happens now that ours is lower at 21%?
I suspect a lot of money was repatriated

That was a game changer, but the stupid left convinces stupid people corporations pay taxes

Everywhere I have worked managed to a 15% effective tax rate. Tax laws are very complex and voluminous and change all the time. I have a friend who is a partner at PwC and his practice of 800 people specialize in nothing but foreign tax for three or four big companies.

Did you know that most companies have relocated the intellectual property to low tax countries to save US taxes? We got the bright idea to tax income from product licensing of intellectual property. Nothing is easier to avoid than that.

It is the company that does not have international presence that really suffers with our stupid tax laws.
 
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