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Tax Avoidance on the Rise
http://www.ritholtz.com/blog/2011/1...+Big+Picture%29
Disgusting.
It's obvious right? What are we paying taxes for anyway. For one bailout after another? They seem to get their money out of nowhere anyway. What difference would our little contributions make? Rather keep my money and spend it on good food. Money clearly lost its value, not in inflationary terms, but in terms of trust. Keep whatever you can. Government certainly can't make better use of it.
Quote from Marcell:
It's obvious right? What are we paying taxes for anyway. For one bailout after another? They seem to get their money out of nowhere anyway. What difference would our little contributions make? Rather keep my money and spend it on good food. Money clearly lost its value, not in inflationary terms, but in terms of trust. Keep whatever you can. Government certainly can't make better use of it.
If corps avoid taxes why should I care?
One less cent they pay in tax would probably result in a lower retail price to me. Taxes are passed through to the consumer.
Uhmnnnn.. will my taxes be lower if a corp pays more in taxes? Yes, you say. Prove it.
Oh I get it, my taxes would probably be higher than they are now. Wow...what a way to make a point.
across the board consumption tax is the answer. Consumers would have a direct connection between prices they pay at the point of sale terminal and government's size. Corporations would have to pay tax on everything they buy.
Quote from Lucrum:
My sentiments exactly. Although the article is mostly about corporate tax evasion.
Quote from jeb9999:
The US tax code is designed for favored parties to avoid taxes.
Quote from silver914:
It's much more political than most realize. Take the EIC for example.
Quote from jeb9999:
The US tax code has always been about politics.
It was politics that got the Sixteenth Amendment passed and got us the tax code abomination that we have today.
Evil done is never undone.
Seems like a fairly simple fix. Eliminate the deferment of taxes on foreign income until repatriation and let the IRS enforce FBAR. Real US citizens meaning people are required to report and pay taxes on word wide income and since corporations are people they should be required to do the same.
The IRS can enforce and compel parent corporations to report Foreign Bank and Financial accounts of all of their subsidiary corporations under FBAR on IRS Form TD F 90-22.1
If you have a financial interest in or signature authority over a foreign financial account, including a bank account, brokerage account, mutual fund, trust, or other type of foreign financial account, the Bank Secrecy Act requires you to report the account yearly to the Internal Revenue Service by filing Form TD F 90-22.1, Report of Foreign Bank and Financial Accounts (FBAR).
The FBAR is required because foreign financial institutions may not be subject to the same reporting requirements as domestic financial institutions. The FBAR is a tool to help the United States government identify persons who may be using foreign financial accounts to circumvent United States law. Investigators use FBARs to help identify or trace funds used for illicit purposes or to identify unreported income maintained or generated abroad.
Who Must File an FBAR
United States persons are required to file an FBAR if:
The United States person had a financial interest in or signature authority over at least one financial account located outside of the United States; and The aggregate value of all foreign financial accounts exceeded $10,000 at any time during the calendar year to be reported.
United States person means United States citizens; United States residents; entities, including but not limited to, corporations, partnerships, or limited liability companies created or organized in the United States or under the laws of the United States; and trusts or estates formed under the laws of the United States.
The information collected may also be provided to appropriate state, local, and foreign law enforcement and regulatory personnel in the performance of their official duties. Disclosure of this information is mandatory. Civil and criminal penalties, including in certain circumstances a fine of not more than $500,000 and imprisonment of not more than five years, are provided for failure to file a report, supply information, and for filing a false or fraudulent report.
The corps get a credit for any taxes paid in the foreign jurisdiction to avoid double taxation but their entire world wide income would get taxed at the prevailing US tax rate.
Quote from PocketChange:
Seems like a fairly simple fix...
Of course.. tis the game... even better when you are allowed to use your office and influence to trade on inside information ;)
Quote from Lucrum:
Assuming the powers that be want it fixed in the first place.
Personally I don't think they do. Less taxes means more political donations to the folks in a position to fix the problem.
Quote from jeb9999:
Tax avoidance and tax evasion are two different things....
Quote from jeb9999:
Tax avoidance and tax evasion are two different things.
The first is legal, the second is not.
Yes
Do you claim exemptions and deductions on your income tax return?
The most agressive corporate tax avoider is GE.
The biggest individual tax avoider is Warren Buffet.
The US tax code is designed for favored parties to avoid taxes.
US tax code has gone from 400 pages in 1913 to over 71,000 pages in 2010.
Quote from Lucrum:
Assuming the powers that be want it fixed in the first place.
Personally I don't think they do. Less taxes means more political donations to the folks in a position to fix the problem.
__________________
wealth effect: stock market higher, health care costs higher, unemployment higher, food/energy prices higher, taxes higher, poverty higher, bonuses higher, foreclosures higher, homelessness higher, crime rate higher, bankruptcies higher, unsold cars higher... it's economics 101
Good for them. I pray Google continues to exploit this loophole so that they can continue their research on automated cars, etc.
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