those pinko, left coast commies are at it again

Discussion in 'Politics & Current Events' started by CFnwside, Jul 26, 2002.

  1. Wingtips1

    Wingtips1 Member+

    May 3, 2004
    02116
    Club:
    Liverpool FC
    ok, so like all the illegal immigrants, or the asian companies doing business here. why are you not bashing them?
     
  2. Wingtips1

    Wingtips1 Member+

    May 3, 2004
    02116
    Club:
    Liverpool FC
    Though I'm an auditor, I do have a solid base in tax.
    Any company that has operations in the US will pay the corporate tax rate on those operations, ie Tyco will pay 35% tax on US revenues. Right now in the US, we are having a special discount on foreign earnings to be repatriated. In Bermuda, they simply will not have to pay a second tax on those earnings. Pfizer recently repatriated $8b, and paid a tax rate of 15%.

    Because of structure of companies in the Caymans and Bermuda, they are able to automatically dodge some of their tax responsibility. It is quite similar to the fact that 234 of the Fortune 500 companies are incorporated in Delaware, where they have better protection and pay lower tax rates.
    But, though the tax rate is 35%, the average tax paid for the Fortune 500 companies last year was around 14% (I'll try to find the figures). With their ability to hide income in their cash flow and future liabilities, and ability to use past losses to offset income, they pay significantly less in taxes than they should.
    And as far as taxation on US companies, you are right. But, again, there are many loopholes. For example, Tyco sets up subsidiaries in China, and they are considered Chinese companies and their income is not taxed by the US. This type of staturing is the reason the US has the tax break on foreign earnings right now.
     
  3. BenReilly

    BenReilly New Member

    Apr 8, 2002
    Actually, a dose of economic patriotism wouldn't be such a bad idea for America.
     
  4. Wingtips1

    Wingtips1 Member+

    May 3, 2004
    02116
    Club:
    Liverpool FC
    Ford, GM, Chrysler anyone?
     

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