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U.S. firms have asked the White House for a tax holiday to help them repatriate some of their...

U.S. firms have asked the White House for a tax holiday to help them repatriate some of their $1T-plus of offshore earnings, but the truth is that multinationals have been quietly, but legally, finding loopholes around the tax for years.
Comments (6)
  • you always here that corporations have trillions of dollars and why donĀ“t they hire workers......this is why...if they bring it back to the USA...they will get taxed ......so they invest it outside the USA....taxes matter...politics matters also..
    29 Dec 2010, 08:35 AM Reply Like
  • "...but the truth is that multinationals have been quietly, but legally, finding loopholes around the tax for years."

     

    Yes, that's the point of the meeting.

     

    The lesson isn't that we should find innovative ways to tax the unlucky who happen to have capital still stuck in America. We need to make doing business in America profitable and our taxation small enough to retain and attract capital.
    29 Dec 2010, 08:50 AM Reply Like
  • The interesting part of this story is that an overly complex tax law has resulted in the employment of thousands of professional doing non constructive work, contributing nothing to society. The political answer is always to plug the loopholes not to overhaul the tax law.
    29 Dec 2010, 09:35 AM Reply Like
  • I love this comment smitty; I think that is precisely right.

     

    Although in terms of the general conversation the US will soon have the highest corporate tax worldwide. This is part of the problem.

     

    The tax code is so convoluted and byzantine that companies have to hire these "non constructive" professionals to find the loopholes and methods to circumvent the code.

     

    If the code was simpler, and rates were lower, this would be a great win for american business, as well as for the average american as companies would be more encouraged to retain their capital here.
    29 Dec 2010, 11:05 AM Reply Like
  • I spent (wasted?) my corporate career seeking the minimum amount of tax legally payable and belonged to professional organizations who hosted seminars to keep us abreast of the latest changes to our labyrinthine tax code. The corporate mentality (and I agree with it) is that taxes are another cost like utilities or raw materials. There is no opprobrium in seeking to minimize those costs so why should anyone feel an obligation to pay more taxes than they have to . George Soros and Warren Buffet don't.
    29 Dec 2010, 11:27 AM Reply Like
  • Smitty - I am with you. Armies of attorneys and accountants have made a career out of complicating the tax code so that they can extract fees to help us navigate it. Having said that, I am pessimistic that anything will change.
    29 Dec 2010, 02:15 PM Reply Like
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