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U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
11–20 of 164 posts
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#12This is happening because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example, if a British company earns income in Germany, its pays German taxes on its German…
> This is not about avoiding tax on profit earned in the US, after the inversion companies continue to pay US taxes, they just don’t pay taxes on income earned outside of the US.
I assume you mean to the US, but many of these companies don't pay taxes in the countries in which they operate either.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#13This is happening because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example, if a British company earns income in Germany, its pays German taxes on its German…
And the US double taxes their citizens living abroad the same way.
As an American making the same money as your non-american co-worker you are left with a lot less just for having a US passport.
It is even possible you have never set foot in the US yet are required to pay uncle sam's taxes.
Wanna get rid of your US passport? Not before you pay 10 years projected taxes and pay an abhorrent fee. You will also be listed on a government website so you can be shamed like a sex offender.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#14In this global economy, as long as nation states exist and are inhabited/colonized by supranational corporations the tax loophole will always exist. That is the root of the problem: the incompatibility issues of the old nationalism with the new globalism.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#15This is happening because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example, if a British company earns income in Germany, its pays German taxes on its German…
And the US double taxes their citizens living abroad the same way. As an American making the same money as your non-american co-worker you are left with a lot less just for having a US passport. It is even possible you have never set foot in the US yet are required to pay uncle sam's taxes. Wanna get rid of your US passport? Not before you pay 10 years projected taxes and pay an abhorrent fee. You will also be listed…
They have painted the picture of these rich billionaires getting away without paying taxes, and once they got the draconian laws, they are applying it to every day Joe, who hardly make a six figure salary overseas. For a country which has no short supply of aspiring immigrants and US is actually very petty towards people who want to abdicate their citizenship.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#16This is happening because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example, if a British company earns income in Germany, its pays German taxes on its German…
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Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#17This is happening because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example, if a British company earns income in Germany, its pays German taxes on its German…
Are countries with a territorial tax system hurt by businesses leaving in order to seek out a lower tax rate? That seems to be the argument the US government is making - although I haven't seen any data - anyone have a link?
They do.
But it doesn't work even in the US's case. US companies will routinely "sell" their intellectual property to a subsidiary in e.g. Ireland and then license to back to the US company to avoid paying US taxes. There are some highly successful US companies who, per the books, make nearly $0/year profit within the US.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#18This is happening because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example, if a British company earns income in Germany, its pays German taxes on its German…
And the US double taxes their citizens living abroad the same way. As an American making the same money as your non-american co-worker you are left with a lot less just for having a US passport. It is even possible you have never set foot in the US yet are required to pay uncle sam's taxes. Wanna get rid of your US passport? Not before you pay 10 years projected taxes and pay an abhorrent fee. You will also be listed…
That's not double-taxation if the US has a tax treaty with the other nation (which is does with most nations). You get tax credits for foreign income taxes paid such that you pay max(foreign_tax, us_tax).
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#19This is happening because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example, if a British company earns income in Germany, its pays German taxes on its German…
And the US double taxes their citizens living abroad the same way. As an American making the same money as your non-american co-worker you are left with a lot less just for having a US passport. It is even possible you have never set foot in the US yet are required to pay uncle sam's taxes. Wanna get rid of your US passport? Not before you pay 10 years projected taxes and pay an abhorrent fee. You will also be listed…
There's a large income exclusion that means unless you earn a really kick ass salary, you're unlikely to be double taxed.
Re: U.S. Moves to Thwart Use of Foreign Acquisitions to Dodge Taxes
#20This is happening because unlike almost every other developed nation the US has a worldwide tax system. Almost every other nation has a territorial tax system. The rest of the world with their territorial system taxes income earned within that country, the US rather taxes income worldwide, regardless of where it is earned. For example, if a British company earns income in Germany, its pays German taxes on its German…
And the US double taxes their citizens living abroad the same way. As an American making the same money as your non-american co-worker you are left with a lot less just for having a US passport. It is even possible you have never set foot in the US yet are required to pay uncle sam's taxes. Wanna get rid of your US passport? Not before you pay 10 years projected taxes and pay an abhorrent fee. You will also be listed…
I agree that double taxation is crazy BUT lets add the fact that US will tax you ONLY if your worldwide income is over a certain threshold (believe it is $90,000 currently). Not that I am defending this but there is difference between saying that you are double taxed vs you are double taxed only for a certain portion of income