Should Corps be required to repatriate off shore profits yearly?

JANFU · Apr 2, 2017

Should Corps be required to repatriate off shore profits yearly?

Presently they can wait for lower tax rates as we saw under GW Bush. And it is again up for discussion.

Estimates run as high as 2 Trillion plus in off shore profits.

https://www.treasury.gov/connect/bl...-The-Costs-of-a-Repatriation-Tax-Holiday.aspx

In 2004, when the U.S. enacted a repatriation tax holiday, the goal was to encourage U.S. multinationals to pay bigger cash dividends from their overseas subsidiaries and use the cash to make investments in the United States. Unfortunately, there is no evidence that it increased U.S. investment or jobs, and it cost taxpayers billions.

Although advocates argue that a repatriation holiday could be costless or even raise tax revenue, the official Congressional scorekeeper, the Joint Committee on Taxation, estimated before enactment that the 2004 repatriation holiday would actually cost billions of dollars. In 2009, when this idea was being pushed once again, Senator Baucus indicated during Floor debates that the cost of a new holiday had increased to $30 billion, presumably because a second holiday would encourage further erosion of the U.S. tax base through shifting of profits overseas. Moreover, according to outside estimates, just five firms got over one-quarter of the tax benefits of the repatriation holiday, and just 15 firms got more than 50 percent of the benefits. To pay for giving this large tax cut once again to a small group of U.S. companies without increasing the deficit, we would have to raise taxes on other U.S. businesses.

In assessing the 2004 tax holiday, the nonpartisan Congressional Research Service reports that most of the largest beneficiaries of the holiday actually cut jobs in 2005-06 – despite overall economy-wide job growth in those years – and many used the repatriated funds simply to repurchase stock or pay dividends. Today, when U.S. corporations have ready access to cash they have accumulated and are holding here in the United States, it is even harder to make the case that a repatriation holiday will unlock new investment and job creation.

I am a Dem- Yes -Why

I am a Dem – No -Why

I am a Repub – Yes-Why

I am a Repub – No-Why

I am Ind – Yes-Why

I am Ind - No-Why

I am not a US Citizen Yes

I am not a US Citizen No

Other- Pls explain

Fishking · Apr 2, 2017

Tough question because taxes on profits overseas are also already taxed by the governments they are operating in (Republican/Libertarian).

JANFU · Apr 2, 2017

Fishking said:
Tough question because taxes on profits overseas are also already taxed by the governments they are operating in (Republican/Libertarian).

And would that reduce taxes paid in the US??
Another question
Individuals must file once per year and claim all income streams, whether earned in or outside the US? Is that correct?

Fishking · Apr 2, 2017

JANFU said:
And would that reduce taxes paid in the US??

Well, I don't think it's fair to have to pay multiple sets of taxes.

Individuals must file once per year and claim all income streams, whether earned in or outside the US? Is that correct?

I'm not sure. I haven't ever made money outside the U.S. I merely don't think taxing something that's already been taxed is OK. Maybe if the taxes they pay is lower than what they would pay back here we could split the difference.

Carjosse · Apr 2, 2017

JANFU said:
And would that reduce taxes paid in the US??
Another question
Individuals must file once per year and claim all income streams, whether earned in or outside the US? Is that correct?

Yes and that is incredibly stupid policy. If you taxed off-shore profits you find that suddenly almost all large corporations would leave for overseas. It is a great way to drive businesses and people away. Why should a person or corporation have to pay taxes on income that has nothing to do with the US other than their citizenship or where their head office is located?

JANFU · Apr 2, 2017

Fishking said:
Well, I don't think it's fair to have to pay multiple sets of taxes.

[quote
Individuals must file once per year and claim all income streams, whether earned in or outside the US? Is that correct?

I'm not sure. I haven't ever made money outside the U.S. I merely don't think taxing something that's already been taxed is OK. Maybe if the taxes they pay is lower than what they would pay back here we could split the difference.[/QUOTE]

US Law states all individuals must file a US tax return. Regardless of where they are located.
A prime example are dual citizens. Use Canada as an example- they live in Canada file a Canadian and US tax return, and as taxes are higher here, no taxes, in general are owed

Henrin · Apr 2, 2017

No. It's none of the governments business.

Skeptic Bob · Apr 2, 2017

Not if those profits were earned offshore.

Surrealistik · Apr 3, 2017

If those off-shore profits have a domestic component; absolutely.

As a general rule, taxes should be paid where they are earned, and this goes for individuals as well, complications featuring foreign/multinational involvement/tax treaties and such notwithstanding.

Should Corps be required to repatriate off shore profits yearly?