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I very strongly support a carbon tax. But we need to be honest and recognize that a large share of that tax is going to be paid by individuals (which is the whole point, of course, if you want to change behavior as opposed to just raising revenue). There will need to be some sort of off-setting reduction in personal income taxes or a rebate or something to keep personal after-tax incomes unchanged.The Z Machine said:
Thanks for expanding much more in depth the point i was trying to make .BobbyLayne said:
Because there is tax due on those profits?
U.S. Corporations are taxed on global profits. That money has not been taxed anywhere.
Tax inversion is the practice of relocating a corporation's legal domicile to a lower-tax nation, or tax haven, usually while retaining its material operations in its higher-tax country of origin. One of the most common tax avoidance techniques is earnings stripping. Here's how it works:
The details never get discussed when people bring up "Let's have a Tax Holiday and bring that $2.5 trillion home!"
- A U.S. corporation uses loans between different divisions of the same company to shift profits out of high-tax jurisdictions and into lower-tax ones.
- For example, an American subsidiary borrows money from a foreign parent company
- American sub then deducts the interest on that loan against its earnings.
- This allows U.S. companies to not only avoid tax on non-U.S. profits, inversion also allows them to avoid taxes on some domestic profits because it facilitates several techniques for re-allocating U.S. profits to lower-tax foreign jurisdictions.
- Most tax saving was generated by earnings stripping, not by avoiding tax on genuinely foreign profits.
Several studies have shown the last tax holiday had little positive effect because they gave the companies such a huge break (35% reduced to 14%.) To be clear, the overseas profits have a tax due, but the current IRS code allows U.S. companies to defer foreign profits. It's a strong incentive for multinationals to hoard cash overseas and then negotiate a lower rate via a tax holiday.
Large U.S. multinational companies which are known to have significant untaxed profits
- General Electric $110 billion profits abroad (as of 2013)
- Microsoft $108.3 billion (2016)
- Pfizer $69 billion(2013) On 23 November 2015, Pfizer and Irish Allergan, Plc announced their intention to merge for an approximate sum of $160 billion making this the largest pharmaceutical deal ever, and the third largest merger in history. The terms of the merger propose that the merged company will maintain Allergan's Irish Republic domicile, resulting in the new company being subject to corporation tax at the Irish rate of 12.5%.
- Merck & Co $57.1 billion (2013)
- Apple $215 billion (2016)
- Abbott Labs, had $40 billion (as of 2011)
- Johnson & Johnson, had $14.8 billion (as of 2012)
- IBM 68.1 billion (2016)
- Google 58.3 billion (2016)
- Cisco 58.0 billion (2016)
- Oracle 38.0 billion (2016)
- Intel 26.9 billion (2016)
Looks good to me. Now if we can only offset this by reducing entitlements he has hit a home run!
Have you heard of carbon fee and dividend?
I had not seen that specific proposal, but yes something along those lines is what I'm getting at.
Article has been updated with some quotes. Oh, good, it's going to pay for itself with economic growth. The Laffer Curve is due to be right with a tax cut one of these times!
####....it's already happening.
Nah - let's instead reserve this thread for 1%ers whining about their financial hardships.
lol - pointing out the stupidity of letting the financial UNSUCCESSFUL run the money is whining? This explains a lot.
You do realize that income tax has already been paid on the money you used to purchase that investment, right? The "rich peoples" (lol) still pay the same income tax (higher actually) than what the middle class is "forced to pay"...then they pay the tax rate on distributions in addition to that.
Trump's doing a bang up job of showing us exactly how brilliant all you rich guys are. Wear that MAGA had with pride Melly.
If the 1% ever once even appeared to prefer anything other than policies meant to further enrich themselves, I'd be all for it.
Oh, thank you so much for investing to help your country and not for any other reason.
Really? What percent of the money used to purchase stocks or other investments do you think are from straight up taxed income?
What about letting greedy people run the money? That also seems problematic.
You mean I got to paper file again?!
Yes kill the fed. Fix the problem.
You're welcome GB.Oh, thank you so much for investing to help your country and not for any other reason.
If we drop the rate while removing loopholes to offset the rate drop, why bother in the first place if the net won't change?
A high rate with loopholes that are accessible only/mostly to large companies creates a high barrier to entry, which decreases competition.
Obviously, if she won't marry you, but no, I have a problem with increasing capitol gains tax because that would currently affect my ability to retire more than anything else.
So we're only getting rid of the loopholes that benefit large companies? Leaving in the loopholes for small business?
I am too but many tax loopholes were not created for that purpose nor do they incentivize behavior that we actually need to incentivize.
Hell if I know what the plans are. I was just answering your specific question.
That's no surprise, but not really the point. You don't see the difference between high rates and a lot of loopholes and lower rates with fewer loopholes?
I think you are talking about a dividend, not a distribution. Distributions are made from s-corps, llc's, etc. Apparently not that simple of a concept for some.
That is an unfair post. A dividend is just a distribution out of E&P. Section 301 is even entitled "Distributions of property." Link
