60 Minutes Story on Corporate Taxes

Discussion in 'Politics' started by Maverick74, Mar 28, 2011.

  1. Maverick74


    In case anyone missed it last night. Captain Obvious, you may want to watch it a few times.

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  2. Hello


    Saw it last night, very good piece.
  3. Seems unfair that many corporations avoid taxes the way they do. The tax law should be amended to correct some of that.

    It's also unfair that corporate earnings get taxed twice... first at the corporate level with the after-tax amounts being added to "retained earnings". Those retained earnings either (1) help increase the stock's value.... which if sold at a profit is partially double-taxed as capital gains, and (2) are distributed as dividends to shareholders to be taxed a 2nd time as income to the recipient.
  4. cstfx


    Hey Mav, how much of your company does it's business overseas and benefits from the lower tax rates?
  5. Maverick74


  6. cstfx


    Exactly! What small business does?

    And yet when we argue about the unfair tax code on businesses in this country, the fucking left has it that WE ALL are making a shit load and want to move it overseas to avoid taxes when it is the privileged few that do this. (Like that Obama ass-kisser Immelt and GE) I don't think there is anyone here who supports skipping the country to save taxes but why are all businesses held to the same tax code that multi-billion dollar companies have, but don't have the means to take advantage of these loop-holes.
  7. If small business could move overseas to avoid taxes, they would. It won't take much for a P.O. Box in Switzerland and some other paperwork to make it happen.

    This really boils down to the move toward "free trade" by corporations who only goal is profit, with no concern for how that profit is made.

    What I don't understand is how the right wingers and teabaggers are more vocal about the unAmerican practice of dodging taxes.

    It is high time these pirates were punished for their actions. If John Chambers can't make enough money in the US, they should move. However, they would make plenty of money staying here and paying taxes, they did it for a long time before NAFTA and the huge mistake of free trade and globalization of our economy without protection.

    The corporations argue that they can't make money here in the US, but what they are really saying is that they can't compete with slave wage labor and production of equipment etc. without regulations.

    There is no way for the US to compete with China, when China pays slave wages and has no protection for their workers and no benefits.

    So what do we as Americans really want?

    The way it used to be in the 50's, or do we want the workers to live like the Chinese workers?

    It is time to protect and put America first, and if that means tariffs to level the playing field, if that means charging more for Cisco to sell their routers made in Ireland to make up for the tax dodge, then by all means. If they can't make money selling routers with tariffs...my guess is some American based non tax dodging company will sell their routers to meet the natural demand.
  8. Maverick74


    I'll tell you why they do it. Because they can. They made that very clear. Their actions were actually executed by the letter of the law. I often joke with the left as many have, if you are so gung ho over paying more taxes, why don't you? Why doesn't Hollywood voluntarily pay more taxes? The answer I always get is they don't have to. They, like everyone else, will take advantage of every tax loop hole, every deduction, every tax credit, etc to minimize their tax bill even though they scream at the top of their lungs for higher taxes.

    So the answer is, corporations move their intellectual property over seas because the law ALLOWS them to do it. If you want to change the laws, please do so. But as of now, they are only doing what every rich liberal is already doing, finding every way they can to reduce their tax bill.
  9. Ricter


    The problem is not company size, SME's vs. large enterprises, it revolves around public vs. private corporations, ie. ownership. At the end of the day it's all about ROI for the publics. I can (anecdote follows, yeah, I'm grumpy about it) estimate and quote a $1.3 million job with a 15.7% margin and expect a satisfactory shareholder review based on that ROI. My cash profit is over $200k. Now, suppose my freight forwarder says the customer now wants me to "handle everything, relieve their stress" and ship the package "DDP", meaning he wants me to pay the freight ($100k) and invoice him afterwards. I sold the package "EXW", so the freight is not part of my original estimate. But, if I'm going to simply invoice the customer later then I'll have the same profit, $200k, but what happens to my ROI? That's right, it's lower--my job costs are up, my profit is the same. (Unless I can mark up the freight cost by 15.7% but, the customer will not pay it. Why? because he can get a competitor of mine to take the ROI hit.)

    So there you go, I'm a slave to the shareholder and have to make a "dumb" move in obedience to them, where a private Joe could have simply said, "sure, I'll pass the cost on, no worries, let's git er done".

    This, among many other reasons related to "foreign" shareholders, is why modern capitalism is broken, tarfu.

    Solely worker owned businesses are the answer, or so I dream.
  10. They can do it because the senators and congressmen left and right are given lots of money for their campaigns by corporations.

    The lawmakers are the slaves of the corporations, and that needs to change.

    Any pro American citizen would want that to happen...

    By the way, I oppose corporations doing what they are doing. The wealthy liberals who betray America and just as guilty as the wealthy conservatives who betray America.

    Ike and Nader have warned us for a couple of generations about the power of the corporations.
    #10     Mar 28, 2011