Obama international tax proposals

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SonomaCat
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Obama international tax proposals

Post by SonomaCat » Wed May 06, 2009 5:29 pm

I will hold off on commenting for now as I'm much more interested to hear what people think about this that aren't in the tax department of a international corporation. We are kind of an echo chamber around here in terms of our opinions on certain things, so it might be better for me to hear throughts from other perspectives.

So what do people think about these proposed rule changes?

http://www.nytimes.com/2009/05/05/business/05tax.html



ChiOCat
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Re: Obama international tax proposals

Post by ChiOCat » Thu May 07, 2009 11:56 am

Bay Area Cat wrote:I will hold off on commenting for now as I'm much more interested to hear what people think about this that aren't in the tax department of a international corporation. We are kind of an echo chamber around here in terms of our opinions on certain things, so it might be better for me to hear throughts from other perspectives.

So what do people think about these proposed rule changes?

http://www.nytimes.com/2009/05/05/business/05tax.html
I'm inclined to agree with Grassley
Congressional Republicans were relatively quiet. Senator Charles E. Grassley of Iowa, the senior Republican on the Senate Finance Committee and a frequent critic of tax schemes, said the president could “count on my support” to crack down on abuses. “But if he’s using tax shelters as a stalking horse to raise taxes on corporations at the cost of U.S. jobs, he’ll lose me.”


There should be an encouragement for companies to keep jobs in the US but I don't know enough to say if this is the way to do it. BAC, do you feel like your international company is maliciously trying to "shirk their responsibility" or are they just trying to stay competitive? Obama's language earlier in the article to that effect bothers me.

How are foreign companies that manufacture in the US taxed in their home countries? Do they pay double? Not that it should determine our tax structure, it just made me wonder.


"We are all vulnerable, and all fallible, with mortality our only certainty..." - Dr Kenneth Bock

Grizlaw
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Re: Obama international tax proposals

Post by Grizlaw » Thu May 07, 2009 12:18 pm

ChiOCat wrote:How are foreign companies that manufacture in the US taxed in their home countries? Do they pay double? Not that it should determine our tax structure, it just made me wonder.
I'm not going to express any opinions on this thread right now, for the same reason that BAC isn't (i.e., because I practice international tax law for a living, and I'd like to hear what some non-tax people think before jumping in with my opinion).

Just to answer your question though -- it varies from country to country, of course, but most other developed countries have adopted what is referred to as a "territorial" income tax regime...meaning, they only tax corporations on income that is earned within their borders. However, I think it's really hard to compare the tax regimes of different countries just by looking at one provision such as this one, because most other countries' tax regimes also differ in other ways that are relevant to the thinking (for example, most European countries also impose value-added taxes and other types of taxes that we don't have on their corporations, so just comparing how they tax cross-border income with how we tax it might not be apples-to-apples).


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Re: Obama international tax proposals

Post by hokeyfine » Thu May 07, 2009 1:26 pm

I'm a non-tax dude. i don't believe that companies maliciously exploit tax laws, i believe they exploit what is given to them. you and I do the same thing when we exploit loopholes(tax or non tax items). To shore up any loopholes has to be a good thing. Now if we can get rid of corporate welfare, or at least if it's the govment giving them my money, i want something in return(interest or ownership).



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