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Danny's new bride.
With the new tax system, I can:
1. Open an affiliate in India to provide call center services.
2. Send half of my money to the India affiliate.
3. Pay the workers in India (where middle wages range from the equivalent of about $3,500 to about $13,000).
4. Pay a tax rate of only 10.5% on half of company profits.The new system put in place by the Republican tax bill is what economists call a modified territorial tax system.
In it, not only is the corporate tax rate on overseas profits just half the normal rate (10.5% versus 21%), companies still receive credits for the foreign taxes they pay. So if a corporation earns its profits in a country where the corporate tax rate is above 13.1% (nearly every other country), then it ends up paying nothingin US taxes.
Not only does the tax bill encourage corporations to move their money and their corporate headquarters overseas, it actually incentivizes them to move plants and manufacturing facilities to other countries as well.
That’s right – rather than help bring back American manufacturing, this bill actually gives companies a tax break for moving their factories to other countries.
Tax jargon aside, this means that the more equipment and factories a company has in other countries, the more tax–free income it can earn.
If that isn’t a strong incentive to shut down American factories and move them overseas then I don’t know what is.
I'm a millionaire who creates zero jobs. Why do I pay less tax than you? | Morris Pearl | Opinion | The Guardian
1. Open an affiliate in India to provide call center services.
2. Send half of my money to the India affiliate.
3. Pay the workers in India (where middle wages range from the equivalent of about $3,500 to about $13,000).
4. Pay a tax rate of only 10.5% on half of company profits.The new system put in place by the Republican tax bill is what economists call a modified territorial tax system.
In it, not only is the corporate tax rate on overseas profits just half the normal rate (10.5% versus 21%), companies still receive credits for the foreign taxes they pay. So if a corporation earns its profits in a country where the corporate tax rate is above 13.1% (nearly every other country), then it ends up paying nothingin US taxes.
Not only does the tax bill encourage corporations to move their money and their corporate headquarters overseas, it actually incentivizes them to move plants and manufacturing facilities to other countries as well.
That’s right – rather than help bring back American manufacturing, this bill actually gives companies a tax break for moving their factories to other countries.
Tax jargon aside, this means that the more equipment and factories a company has in other countries, the more tax–free income it can earn.
If that isn’t a strong incentive to shut down American factories and move them overseas then I don’t know what is.
I'm a millionaire who creates zero jobs. Why do I pay less tax than you? | Morris Pearl | Opinion | The Guardian
