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Left warns, CEOs laud Gang of Six on overseas tax

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TheDemSocialist

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I personally think this "plan" is pure ****ing garbage.....

Left-wing activists and politicians on Wednesday sharply criticized a plan to end U.S. taxation of most corporate offshore profits as endorsed by the Senate's so-called "Gang of Six."

In backing the idea of a territorial tax system, a deficit-reduction plan from the Gang of Six would hand multinational corporations a victory in their fight for lower and simpler taxes on profits they post outside the country.

The Business Roundtable, a lobbying group for the CEOs of many of the nation's largest companies, praised the plan for "supporting lower corporate tax rates and moving toward a competitive territorial system of taxation."

"We already have huge problems with corporations moving jobs overseas and shifting their profits to tax havens to reduce their U.S. tax bills,"

Independent Senator Bernie Sanders said the plan would "hurt American workers by giving U.S. companies more incentives to avoid U.S. taxes by shipping jobs to low-tax countries."

At present, an estimated $1 trillion in profits is being held offshore by U.S. companies. They pay taxes on those profits to the countries where the profits are held but not to the United States under the complex deferral system.


Read more at: Left warns, CEOs laud Gang of Six on overseas tax | Reuters

This plan is pure ****ing garbage....

Thoughts?
Comments?
Response?
 
If you want to cut spending and solve the debt/deficit, it's a good place to start. And it's not like the territorial tax system is what this plan is all about.
 
Its sure not my ideal either but given the GOP controls the house, and that we have so many conservative Democrats in congress, I don't see anything better on the horizon until after the 2012 election.

What's the alternative? This protects the seniors and poor from big cuts, and provides some increased revenues by ending some tax loopholes and credits.
 
I'm not absolutely sure on the specifics here. I guess I need far more info. If the idea is to not tax income brought back to the states that were earned overseas, I agree it's a bad idea. If it's an idea to make the tax simplier and maybe a little less to encourage bringing the money back, I'd need more details.
 
Thunder said:
I am unhappy about cutting ANY taxes, as a way to reduce the debt.
Click to expand...

No one is talking about cutting taxes. But as long as there are fewer tax payers, the debt and deficit aren't going to get fixed.
 
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TheDemSocialist said:
I personally think this "plan" is pure ****ing garbage.....

Left-wing activists and politicians on Wednesday sharply criticized a plan to end U.S. taxation of most corporate offshore profits as endorsed by the Senate's so-called "Gang of Six."

In backing the idea of a territorial tax system, a deficit-reduction plan from the Gang of Six would hand multinational corporations a victory in their fight for lower and simpler taxes on profits they post outside the country.

The Business Roundtable, a lobbying group for the CEOs of many of the nation's largest companies, praised the plan for "supporting lower corporate tax rates and moving toward a competitive territorial system of taxation."

"We already have huge problems with corporations moving jobs overseas and shifting their profits to tax havens to reduce their U.S. tax bills,"

Independent Senator Bernie Sanders said the plan would "hurt American workers by giving U.S. companies more incentives to avoid U.S. taxes by shipping jobs to low-tax countries."

At present, an estimated $1 trillion in profits is being held offshore by U.S. companies. They pay taxes on those profits to the countries where the profits are held but not to the United States under the complex deferral system.


Read more at: Left warns, CEOs laud Gang of Six on overseas tax | Reuters

This plan is pure ****ing garbage....

Thoughts?
Comments?
Response?
Click to expand...

No one seems to get that the only way to keep the American people productive and our finances in order will ultimately require that America's wealthy make do with smaller sums of capital than they've been accustomed to possess and increase in the last couple decades. That much of our country's values can't be concentrated among the higher income bracket while still maintaining a stable middle class.

It's just solves one problem (the deficit) by heightening another (loss of jobs) which will ultimately return us to the first problem (the deficit) when increasingly larger numbers of Americans slip into homelessness and poverty.
 
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Morality Games said:
No one seems to get that the only way to keep the American people productive and our finances in order will ultimately require that America's wealthy make do with smaller sums of capital than they've been accustomed to possess and increase in the last couple decades. That much of our country's values can't be concentrated among the higher income bracket while still maintaining a stable middle class.

It's just solves one problem (the deficit) by heightening another (loss of jobs) which will ultimately return us to the first problem (the deficit) when increasingly larger numbers of Americans slip into homelessness and poverty.
Click to expand...

More money out of peoples's pockets isn't going to fix a goddamn thing. More tax revenue isn't going to create jobs.

It's been tried and failed miserably.
 
TheDemSocialist said:
I personally think this "plan" is pure ****ing garbage.....

Left-wing activists and politicians on Wednesday sharply criticized a plan to end U.S. taxation of most corporate offshore profits as endorsed by the Senate's so-called "Gang of Six."

In backing the idea of a territorial tax system, a deficit-reduction plan from the Gang of Six would hand multinational corporations a victory in their fight for lower and simpler taxes on profits they post outside the country.

The Business Roundtable, a lobbying group for the CEOs of many of the nation's largest companies, praised the plan for "supporting lower corporate tax rates and moving toward a competitive territorial system of taxation."

"We already have huge problems with corporations moving jobs overseas and shifting their profits to tax havens to reduce their U.S. tax bills,"

Independent Senator Bernie Sanders said the plan would "hurt American workers by giving U.S. companies more incentives to avoid U.S. taxes by shipping jobs to low-tax countries."

At present, an estimated $1 trillion in profits is being held offshore by U.S. companies. They pay taxes on those profits to the countries where the profits are held but not to the United States under the complex deferral system.


Read more at: Left warns, CEOs laud Gang of Six on overseas tax | Reuters

This plan is pure ****ing garbage....

Thoughts?
Comments?
Response?
Click to expand...


Edit to my previous post here: After reading up on more of the specifics, I have changed my mind in supporting the Gang of 6 plan. It will further hurt the already suffering middle class a an enlarge the already largest disparity of wealth in this country since the 1920's.
 
apdst said:
More money out of peoples's pockets isn't going to fix a goddamn thing. More tax revenue isn't going to create jobs.

It's been tried and failed miserably.
Click to expand...


Cutting taxs or NO taxs doesnt create jobs either...except maybe in china

This is all bull****...you can abolish taxs on corporations in the USA if they think they can make an extra buck in china thats exactly where all the jobs will be...taxing or not taxing doesnt fix greed
 
lpast said:
Cutting taxs or NO taxs doesnt create jobs either...except maybe in china

This is all bull****...you can abolish taxs on corporations in the USA if they think they can make an extra buck in china thats exactly where all the jobs will be...taxing or not taxing doesnt fix greed
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It's not that simple. Let me start out that I still feel from what I know this is a bad proposal and I'll explain why.

First, cutting taxes would help create jobs. Just using the above scenario, if we removed the tax corporations owe on money earned in the U.S. and increased the tax on bringing money back into the country, it would indeed create jobs here.

By removing taxes on the money corporations bring into the company will only encourage companies to take more business off-shore.

I'll say though, that perhaps your statement only applied to cutting taxes as proposed here. I'd then agree.
 
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I know this is a tough one to swallow but we have had a gigantic investment revenue flight from the US in the last 2 years. Im not talking public, like treasuries, Im talking investment capital. Its gone, its probably not coming back and its in the neighborhood of 25% of the GDP. Now I need to remember which investment article I read it in...sorry. Ill look for it.
 
OpportunityCost said:
I know this is a tough one to swallow but we have had a gigantic investment revenue flight from the US in the last 2 years. Im not talking public, like treasuries, Im talking investment capital. Its gone, its probably not coming back and its in the neighborhood of 25% of the GDP. Now I need to remember which investment article I read it in...sorry. Ill look for it.
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It's been going on for more than 2 years. IMO there is no need to find the article. Most would agree that it's a large number. The answer is not in encouraging the actions though.

IMO to argue that we need this money back in the country (which by itself is a valid arguement) we need to realize that even more important is in stopping this money from leaving in the first place.
 
apdst said:
More money out of peoples's pockets isn't going to fix a goddamn thing. More tax revenue isn't going to create jobs.

It's been tried and failed miserably.
Click to expand...

Taxes are a measure for compensating lower-incomes for the loss of opportunity that comes from free trade, through welfare, as well as providing essential public services.

If I wanted to create jobs in the private sector, I would penalize companies that push free trade to its highest excesses; that is, I would illegalize certain aspects of free trade currently standard and impose more regulations. I would be much more willing to treat an American company that employs foreign labor like a foreign company, import taxes and all.

The only way of making American jobs is to make the alternatives more expensive.
 
They did this not so long ago. It was great for the corporations and their shareholders.

A tax holiday enacted in 2004 failed to produce the promised economic benefits. The evidence shows that firms mostly used the repatriated earnings not to invest in U.S. jobs or growth but for purposes that Congress sought to prohibit, such as repurchasing their own stock and paying bigger dividends to their shareholders. Moreover, many firms actually laid off large numbers of U.S. workers even as they reaped multi-billion-dollar benefits from the tax holiday and passed them on to shareholders.

Tax Holiday for Overseas Corporate Profits Would Increase Deficits, Fail to Boost the Economy, and Ultimately Shift More Investment and Jobs Overseas — Center on Budget and Policy Priorities
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I might also add that that act in 2004 was enacted as a one-time 'dividend repatriation tax holiday'. If you keep doing this every 5 or 6 years, the corporations will just stockpile even more profits overseas and wait for the 'holiday' to bring it back.
 
BWG said:
I might also add that that act in 2004 was enacted as a one-time 'dividend repatriation tax holiday'. If you keep doing this every 5 or 6 years, the corporations will just stockpile even more profits overseas and wait for the 'holiday' to bring it back.
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I agree with this point and while I will not discuss my point further in this thread this exact same arguement is used for amnesty for illegal immigrants and it's as wrong for the same reasons.
 
OpportunityCost said:
I know this is a tough one to swallow but we have had a gigantic investment revenue flight from the US in the last 2 years. Im not talking public, like treasuries, Im talking investment capital. Its gone, its probably not coming back and its in the neighborhood of 25% of the GDP. Now I need to remember which investment article I read it in...sorry. Ill look for it.
Click to expand...

We are still running a capital surplus and will likely continue to unless the value of the dollar crumbles. The capital surplus has likely declined as it always does during recession.
 
1Perry said:
It's been going on for more than 2 years. IMO there is no need to find the article. Most would agree that it's a large number. The answer is not in encouraging the actions though.

IMO to argue that we need this money back in the country (which by itself is a valid arguement) we need to realize that even more important is in stopping this money from leaving in the first place.
Click to expand...

He needs to find the article because he likely misunderstood it.

Why do we need green pieces of paper back in the economy?
 
BWG said:
They did this not so long ago. It was great for the corporations and their shareholders.



I might also add that that act in 2004 was enacted as a one-time 'dividend repatriation tax holiday'. If you keep doing this every 5 or 6 years, the corporations will just stockpile even more profits overseas and wait for the 'holiday' to bring it back.
Click to expand...

The points to consider

The companies are not bring the money back as it will be taxed. It is not being put to any use in the US and is being used in other countries. So as the US is not getting any tax revenue from this money now, and it is not seeing any benifits from this money being in other countries (other then higher stock prices for the companies) it does make economic sense to allow US companies to bring the money back from oveseas operations tax free. At which point that money could be put to productive use within the US.
 
RStringfield said:
He needs to find the article because he likely misunderstood it.
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I don't think he misunderstood.

Why do we need green pieces of paper back in the economy?
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It's what the government has been bitchin for companies to do for the last couple years.
 
Morality Games said:
Taxes are a measure for compensating lower-incomes for the loss of opportunity that comes from free trade, through welfare, as well as providing essential public services.
Click to expand...

LOL... Loss of opportunity? Like the lossed opportunity to starve to death?

If I wanted to create jobs in the private sector, I would penalize companies that push free trade to its highest excesses; that is, I would illegalize certain aspects of free trade currently standard and impose more regulations. I would be much more willing to treat an American company that employs foreign labor like a foreign company, import taxes and all.

The only way of making American jobs is to make the alternatives more expensive.
Click to expand...

God, what incredible ignorance. If you want to improve the trade deficit and reduce our capital surplus then we should just default.
 
1Perry said:
I don't think he misunderstood.
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He certainly misunderstood. We ARE running a capital surplus. The capital surplus and trade deficit balance out. Our capital surplus has declined as has the trade deficit since the recession. That always happens.

You people have no fing clue about international trade or the economics involved.

It's what the government has been bitchin for companies to do for the last couple years.
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A capital surplus is DEFINITELY a good thing, but I doubt you understand why as you are also bitching about the trade deficit. You can't have one without the other.
 
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