US: One time 14% tax on foreigns.

[ZenOps]

http://www.reuters.com/article/2015/02/01/us-usa-budget-tax-idUSKBN0L51IX20150201

Should be up for approval soon. "Foreign" of course includes Canada.

[ExtraSlow]

How dare those companies earn profits abroad! They must be punished. I don't know why this isn't a 75% tax.

[Thales of Miletus]

U.S. companies pay hardly any tax and get their lobbyist to gut anything that would cost them a dime.

Don't worry, they are safe.

[themack89]

I like this, but I doubt it will work.

I think the most disgusting crime committed by MNC's is definitely tax evasion.

[Feruk]

I find it insane that despite a 35% tax, most companies pay almost 0% because of all the loopholes in US tax code. What I think the US needs is a flat 20% corporate tax with absolutely no deductions on profits for anything earned in the US. As for foreign earnings, if taxed at below 20% in those countries, the difference between that country's tax rate and 20% is what should go to the US. If a county has a higher effective tax rate, then no US tax on foreign earnings. Seems pretty straight forward. :dunno:

All these stupid loopholes and tax incentives just overcomplicate the tax system and create waste in both US and Canada.

[BigMass]

hi I'm apple and I make nothing and pay no tax because all my profits go to Joe's BBQ Shack out of Ireland which owns all our patents and IP and we have to pay them licensing fees and royalties

Then we get Janet to give us money at zero interest rates at the expense of middle class savers so we can buy back stock and boost our share price.

[kertejud2]

Originally posted by BigMass
hi I'm apple and I make nothing and pay no tax because all my profits go to Joe's BBQ Shack out of Ireland which owns all our patents and IP and we have to pay them licensing fees and royalties

http://img1.wikia.nocookie.net/__cb20100425002918/simpsons/images/thumb/4/4a/CanaryTree.png/500px-CanaryTree.png

[blitz]

If corporations are operating within the tax code, then I don't see the problem with it. Change the rules or deal with the lost revenue.

[01RedDX]

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[FraserB]

Originally posted by blitz
If corporations are operating within the tax code, then I don't see the problem with it. Change the rules or deal with the lost revenue.

This.

If there are legal ways to reduce your tax burden and you don't take them, you're an idiot. Plain and simple.

[Sugarphreak]

...

[sabad66]

Not a bad move. If they use this money to pay for the infrastructure repairs then this will help the middle class.

[01RedDX]

.

[suntan]

Originally posted by 01RedDX


But if corporations are people... and we are also people... how come there is no legal way for us to evade taxes like there is for corporations? Is it because non-corporation people are idiots for not making up their own tax rules? RRSP is the most obvious "loophole".

One time $750K capital gains deduction.

No tax on primary residence sale.

GST deduction for non-ballers.

All sorts of kid deductions, esp. if you're a single parent.

TFSA no taxes on dividend income or capital gains.

Charitable contribution deduction.

Carry forward capital losses.

Tuition tax credit (I SO FUCKING WISH I HAD THIS WHEN I WAS IN SCHOOL)

[ZenOps]

I'm not convinced its appropriate to think US taxes will go towards things like improvements in roads, etc.

By my estimation, quite a bit of the collection of US collection will go into interest payments - which probably goes to China (and other private US debtholders) I'd be suprised if any collected taxes lasted 1/4 second in the US before it was shipped off as an interest payment to a debtholder.

In the grand scheme of things, its probably just another degree of seperation from local taxation. In otherwords, not only will Canada not see the tax revenue go towards things like infrastructure, it probably won't go to US infrastructure either. Arguably a huge chunk of this money will go to US bond debtholders.

If you really want to think of it in conspiracist terms: Its a tax grab on the world to pay for US debts. If they did not have a "one off tax" all other nations could use the $2 trillion to pay down their own debts. But regardless, the money will probably go to the exact same people anyhow, the bondholders of all nations. The only difference is that the US gets to bring down the "amount owed" on their credit statement instead of ours.

In which case, it makes more sense for Canada to do a 14% one off tax on anyone doing business in the US.

But thats the way the game was setup 44 years ago. Don't hate the player.

[msommers]

Buffet and his secretary are a good example of how broken things in the US are. I'm not so sure it's that bad here in Canada but I'm not an accountant.

[BigMass]

Originally posted by ZenOps
I'm not convinced its appropriate to think US taxes will go towards things like improvements in roads, etc.

By my estimation, quite a bit of the collection of US collection will go into interest payments - which probably goes to China (and other private US debtholders)

doesn't matter where it goes. The money will be spent either way. The only debate is who's going to take the pain. So far the poor and middle class have shouldered the entire burden of the GFC while the rich get richer on a scale not seen in history. A lot of people just don't see the big picture and how these people are basically turning themselves into gods like in the time of the pharos. Those defending the nihilistic tactics used by MNC like apple have little understanding of how the system functions on a very basic and fundamental level.

[01RedDX]

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[suntan]

They are ways to pay less taxes.

But since you want to avoid EVERYTHING. All right:

Form a corporation. Make the fiscal year end July 31 (or some other date that isn't Dec 31). Defer all your income to the back half of the year (that is, the portion that is past Dec 31 for that fiscal year).

Voila. You made nothing personally, you don't even have to pay CPP or even give yourself a T4.

[e36bmw///]

bn

[themack89]

If we all understood the ramifications of not paying taxes and the methods used to avoid paying taxes, what happens to the money, etc., mostly certainly we wouldn't be saying "Good on them for beating a flawed system."

There is an estimated 20-30 trillion USD sitting in offshore accounts not doing a god damn thing. Think about that. 20-30 trillion.