Dozens of Major Businesses Have Left the US

[Gimmesometruth]

Actually I have no problem with individual income taxes as long as they are evenly applied, but I do wonder why we would tax businesses that provide the income to individuals...

You still need to overcome your famous quote before you can comment on any taxation.

 

[Gonzo Rodeo]

And this is referred to as....wait for it...libertarian mental masturbation.

Great. Now I have to change my political affiliation label back to "other". I never got a "duh cuz ur a [fill-in-the-blank]" in the two and a half years I've been coming here.... and I *just* changed it to libertarian yesterday.

 

[Gimmesometruth]

Great. Now I have to change my political affiliation label back to "other". I never got a "duh cuz ur a [fill-in-the-blank]" in the two and a half years I've been coming here.... and I *just* changed it to libertarian yesterday.

I wouldn't advertise that affiliation either.....ever....and if one is so thin skinned so as to be moved by a small tease....well there you are.

you could report it....if that would help.

 

[Misterveritis]

Way more foreign owned companies have located branches in the US, and way more foreign individuals have opened businesses in the US than we have lost.

Where are they headquartered? Where do they claim home to be?

 

[Gonzo Rodeo]

I wouldn't advertise that affiliation either.....ever....and if one is so thin skinned so as to be moved by a small tease....well there you are.

you could report it....if that would help.

Is that what liberals do? Tease, instead of respond to well thought out arguments? I just had a socialist say "fair enough" after allowing me to explain myself. Apparently, snap judgments of arguments (and people) don't always yield the correct interpretations.

 

[AlabamaPaul]

You still need to overcome your famous quote before you can comment on any taxation.

When taken in context, I see no need to "overcome" anything, and I see you're not interested in a discussion on this subject...

 

[Kushinator]

Where are they headquartered? Where do they claim home to be?

Here is a recent example.

Chinese love US housing so much, now they're building it

 

[Gimmesometruth]

Is that what liberals do? Tease, instead of respond to well thought out arguments?

This liberal is calling your "thoughts" pointless, off topic, libertarian bs, ie, mental masturbation. Your method of dealing with it....is to change your "lean". Wow.

I just had a socialist say "fair enough" after allowing me to explain myself. Apparently, snap judgments of arguments (and people) don't always yield the correct interpretations.

I'm not so easily appeased....and note, he approved of my response too. So much for an appeal to authority.

 

[Jack Hays]

Those corporations haven't "left the US."

What most of them are doing is exploiting a tax loophole. They purchase a foreign company, and use the merger process to reincorporate abroad, and cut their tax rate by a few points.

The effective corporate tax rate -- as in, what they actually pay -- is actually fairly low. On average it's around 12%. When you include all taxes (local, state, foreign, federal) it's around 17%. (GAO: U.S. corporations pay average effective tax rate of 12.6% - Jul. 1, 2013)

BK appears to be an exception. They are in an industry with a higher tax rate (effective rates around 27.5%), but they actually won't save much by moving to Canada -- Tim Horton's rates are reported between 27 and 29%. They might save a little on capital gains. (Burger King Deal Draws Tax Criticism - WSJ note may soon be paywall)

Shareholders seem to like inversions... for a few weeks. Stock performance doesn't actually improve after doing an inversion. In addition, some shareholders can get screwed by the process. E.g. if you bought BK at $14, and the company does the conversion at $30, you get issued new stock -- and likely have to pay capital gains at the conversion price. (Burger King merger: Do 'tax inversions' really make sense? (+video) - CSMonitor.com)

The US isn't the only country where this happens. Amazon, for example, has avoided taxes in EU nations for years by incorporating in Luxembourg. The Brits were supposedly pretty ticked off about it, too. Amazon: £7bn sales, no UK corporation tax | Technology | The Guardian

No one is moving because of any politician's rhetoric; that's just silly. None of those companies plan to stop doing business in the US. BK is not going to close stores in the US. All of those companies still have to deal with the US tax code, US regulations, US employees, US customers and so forth.

The reality is that most inversions, and corporate HQ location changes, are for tax reasons.

If the effective rate were really advantageous in the US then companies would not be seeking inversions.

 

[AlabamaPaul]

If the effective rate were really advantageous in the US then companies would not be seeking inversions.

Bingo, what's up 2m?

 

[Jack Hays]

Bingo, what's up 2m?

Greetings, AP.:2wave:

Long time no see. All is well here. Had a good summer and now getting back to real life. You?

 

[AlabamaPaul]

Greetings, AP.:2wave:

Long time no see. All is well here. Had a good summer and now getting back to real life. You?

And a warm hello to you 2m. I'm waiting on four suppressors, so I'm in a bit of a downtime. BTW, I'm in the 71% supporting the REDSKINS football team name, not necessarily the team itself...

 

[Jack Hays]

And a warm hello to you 2m. I'm waiting on four suppressors, so I'm in a bit of a downtime. BTW, I'm in the 71% supporting the REDSKINS football team name, not necessarily the team itself...

Thanks. I've spent some time lately defending the name here at DP.

FYI: One result of this summer's adventures is the beginning of a plan to relocate to Hilton Head Island, SC in early 2017.

 

[AlabamaPaul]

Thanks. I've spent some time lately defending the name here at DP.

FYI: One result of this summer's adventures is the beginning of a plan to relocate to Hilton Head Island, SC in early 2017.

Excellent, but we'll be headed a bit further south to FL. We had thought about MX or the islands, but we just don't know if we could adjust...

 

[Gimmesometruth]

If the effective rate were really advantageous in the US then companies would not be seeking inversions.

Corporations are ALWAYS going to try to avoid taxation, your comment is pointless....but then..what else is new?

 

[Jack Hays]

Corporations are ALWAYS going to try to avoid taxation, your comment is pointless....but then..what else is new?

Thank you for underlining my point. US companies seek inversions to avoid taxes; they are seeking lower effective tax rates abroad. I said it better, but you said it too. Thanks for your support.

 

[AlabamaPaul]

Corporations are ALWAYS going to try to avoid taxation, your comment is pointless....but then..what else is new?

What is the point of taxing corporations when the main tax revenue is derived from personal income taxes, and by doing so it encourages them to relocate or reduce their activity in this country?

 

[gdgyva]

Yes, those with capital did, since people have to eat and if you don't have capital, you have to work for greedy monsters like the Walmart family

No....you have a choice

You may not like your choices....but you do have them

And every person has the option of making their situation better

Is it easy....hell no

But nothing worth anything in life is free....you have to work on it/ at it

Even those with limited intelligence can learn basic trades and make more than minimum wage

Question is.....do they want to put in the effort needed?

 

[FaceofBachmann]

No....you have a choice

You may not like your choices....but you do have them

And every person has the option of making their situation better

Is it easy....hell no

But nothing worth anything in life is free....you have to work on it/ at it

Even those with limited intelligence can learn basic trades and make more than minimum wage

Question is.....do they want to put in the effort needed?

The myth of capital combined with the myth that workers are lazy. What a witches brew.

The irony is the billionaire Walton children are the lazy ones, never worked a day in their miserable lives. But you think their workers are the problem

 

[AlabamaPaul]

The myth of capital combined with the myth that workers are lazy. What a witches brew.

The irony is the billionaire Walton children are the lazy ones, never worked a day in their miserable lives. But you think their workers are the problem

Would you rather the Waltons shut down Walmart and not keep their capital at risk?

 

[FaceofBachmann]

Would you rather the Waltons shut down Walmart and not keep their capital at risk?

What risk? They inherited the billions from their sorrya** Dad, who started the whole process of capital flight to China. Never worked a day in their lives.

But in any case, the issue is paying higher wages to their hard working employees. Since their billionaires, maybe they could take a lower profit margin and do so. But they don't. Why? They're greedy.

 

[AlabamaPaul]

What risk? They inherited the billions from their sorrya** Dad, who started the whole process of capital flight to China. Never worked a day in their lives.

But in any case, the issue is paying higher wages to their hard working employees. Since their billionaires, maybe they could take a lower profit margin and do so. But they don't. Why? They're greedy.

Why did you choose not to answer the basic question and rant instead? If their employees want better jobs, they need to acquire better skills to make themselves more valuable to employers, not expect to be compensated at a wage above market value...

 

[gdgyva]

The myth of capital combined with the myth that workers are lazy. What a witches brew.

The irony is the billionaire Walton children are the lazy ones, never worked a day in their miserable lives. But you think their workers are the problem

You are the one complaining about Walmart

And the wages they pay

It almost seems like you are envious or jealous of wealth

And you say lazy.....not me

It is easy to play the victim....harder to actually get things done

 

[Henrin]

First of all, I was responding to an argument that said the Bill of Rights did not include the right to keep income. This is a problematic argument because the Bill of Rights is a set of rules for what the government cannot do to the people more than it is a set of permissions granted to the people. The original wording of the Constitution (including the Bill of Rights) did not include any language specifically protecting income from taxation simply because the original wording of the Constitution did not allow the federal government to tax income, i.e. income was already protected by the 10th Amendment since no power to tax income so was granted to the federal government. And by this token, some interpretations of the 10th Amendment claim the 16th Amendment should not be, any more so than a hypothetical amendment granting the government the right to arrest a citizen for political speech.

Not even mentioning that it was only to apply to unearned income. Wages and salaries are earned income and are therefore not covered by the sixteenth amendment. Of course, the government quickly made the word income apply to whatever the hell they wanted.

 

[Henrin]

What risk? They inherited the billions from their sorrya** Dad, who started the whole process of capital flight to China. Never worked a day in their lives.

Yes, people are born into better situations than others. The funny part is that many times people that are born into money can't do anything at all, while those born into poverty can do pretty much anything. That's life. The Lou Reed song about it is pretty good too.