Lake Erie Conservative

thoughtful discussion(s) about issue(s)

Posts Tagged ‘corporate structure’

… Why the Fight over ” Tax Inversions” [#corporate structure]…

Posted by paulfromwloh on Friday,April 8th,2016

.. also , simple ..

.. Why ?? Because U.S. companies found a giant – sized loophole in U.S. tax law , and are driving U.S. Mint – sized trucks right on thru it ..

.. does anyone blame them ?? ..

.. so , what is an inversion ? Easy to understand ..

.. one company [U.S.] moves to take over another company [foreign] . The companies can be the same size , or much different in size .But The headquarters for the combined firm is in the foreign nation [for tax purposes] .Management for the firm remains in the U.S. ,,

,, [h/t — Reuters.com/business]..
.. [link] to the blog post news ..

.. it allows the company to protect its income from the U.S. ‘ own onerous tax system . Also , it keeps the revenue , expense , and income in the foreign nation , under their control , and not Treasury ‘ s ..

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… Don’t Those Knuckleheads Ever Learn [#US Treasury][#tax inversion]…

Posted by paulfromwloh on Wednesday,April 6th,2016

.. it seems that Our country ‘ s Treasury Department is a glutton for punishment . Also , they want to be stuck in court with multiple court cases ..

.. So , what the fart is the big brawl all about with these ” tax inversions ?? ” …

.. simple , and for 2 reasons . One is our country ‘ s tax rate . Currently our’ s top tax rate for corporations is about 35.0% , which is the highest in the Western World . Having a rate that high is going to inspire many attempts to go to tax havens , and the use of tax dodges ..

.. [h/t — Reuteurs.com/business]..
.. [link] to the blog post news ..

.. the other is the way our country taxes corporations . Worldwide , companies are taxed generally one way . They only pay tax on the earnings on the income earned in that specific country . Our does it radically different . Our country taxes income on companies on a worldwide business basis . It just does not mean our nation alone , but in every other country on the planet ..

.. Treasury is trying to legislate by ” executive order ” or by regulation . Oops . Regulations may interpret and implement existing law . They may not act to write new law . That is Congress ‘ job ,folks ..

.. So , what happens ? The stuff get challenged in court , and by a company willing to take on the battle .most companies do not want the to spend the fuss or the tIme .But some do . Those are the ones that will benefit from the battle [and the expense]…

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