> Among the mechanisms Netflix is using to achieve its next-to-nothing tax liability are accelerated depreciation (which appears to have cut the company’s tax expense by $148 million); deductions for stock options for Netflix executives and other employees ($339 million); and research and development tax credits ($113 million). These are straightforward deductions.
> and research and development tax credits ($113 million). This is why you fill out your timesheets people!
Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
301–310 of 404 posts
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#302Earlier quoted context omitted.
No, because that's a loan rather than an R&D expenditure from income. I guess that probably sounds flippant, but the mechanics are different. If a business received a loan, the tax prospects wouldn't be as favorable as expenditure either.
Different how? Different in practice or in tax law? The point of the thread is that the two are essentially the same in practice (investing current monetary influxes towards future revenues) but the tax law differences favor one over the other.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#303Earlier quoted context omitted.
Why not let people employ each other where they are instead of importing grandpa’s beliefs about how money is produced? It’s the workers doing that produce the real value, not a rich person holding capital they’ll only spend on us if we capitulate. Why do we need the age old tale of a shared ephemeral store like religion and fiat finance when we see those things become monopolized and gamed by the previous generation…
Most companies are not AT&T. To cite one European example, in Spain 80% of companies are 1-3 employees. Giving the entrepreneur a tax break is a great way to help 80% of employers. In the US that number might be even higher [0] (99% percent according to that article but we’d have to cross check what “small business” means in this context). Your rhetoric seems to imply that all companies are owned and managed by greed…
None of us owe servitude to old debts, contracts, wives tales, sonnets, limericks, hymns, poems, stories.
When the world changes it does so because society decides there are different words to better represent its goals.
Laws are no longer based upon the words of Gods. The rich are not Gods. They don’t represent meritorious effort when they’re inheriting and being gifted wealth with no strings (see Trump admin and covid payouts, it’s still happening under Biden; he’s just less gaudy.)
Why not just logistical distribution of materials to boost communal health, etc.
The masses are already used to only being able afford a vacation every X months. Working off a home for X years.
Why do we still enable a minority to shrug off the same responsibility in deference to old contracts none of us are legally obligated to mind?
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#304Earlier quoted context omitted.
Most companies are not AT&T. To cite one European example, in Spain 80% of companies are 1-3 employees. Giving the entrepreneur a tax break is a great way to help 80% of employers. In the US that number might be even higher [0] (99% percent according to that article but we’d have to cross check what “small business” means in this context). Your rhetoric seems to imply that all companies are owned and managed by greed…
Why must the masses be tethered to a monopolized ephemeral value store? None of us owe servitude to old debts, contracts, wives tales, sonnets, limericks, hymns, poems, stories. When the world changes it does so because society decides there are different words to better represent its goals. Laws are no longer based upon the words of Gods. The rich are not Gods. They don’t represent meritorious effort when they’re in…
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#305It would be perfectly fine for corporations to pay comically low taxes--- IF they also had NO ability to fund large-scale lobbying operations and were not allowed to put unlimited amounts of money into political campaigns. That's NOT ever going to happen. But now is the best time for the tax part to change. The economy has been floated by unprecedented government pay-outs, narrowly avoiding a deep depression that wou…
>> It would be perfectly fine for corporations to pay comically low taxes No it wouldn't
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#306Earlier quoted context omitted.
> What would be the incentive for this? Greed, son, greed. That is why 5 people in the US have more money than the bottom 100 million. They didn't work hard to become that rich, they stole it by not paying wages, health care, benefits, or sharing the wealth. Because they do not have to, nothing prevents them from keeping it and paying low wages in an economy where the ONLY jobs are working for them. (Look at the most…
Actually behavior rebuts your theory. Apple has paid hundreds of billions of dividends to shareholders the last few years. It's borrowed money to do it because it would be taxed if it repatriated funds to pay dividends with. If the corporate tax rate was reduced to zero it would have zero reason to keep foreign profits offshore, it would just repatriate them and pay dividends directly.
Right. That's great: the richest employees of apple get richer, and the people doing the worst labor live in dorms and work 18 hour days.
> If the corporate tax rate was reduced to zero it would have zero reason to keep foreign profits offshore,
Again, you seem to be ignoring the abundant evidence. Trickle down has never worked. Corporate tax rates are the lowest they've EVER been (down from >80% in the early 80's) and money still flows out of the US.
Please, study history and try again.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#307Earlier quoted context omitted.
Everyone they employ already pays tax. Everyone that gets a dividend pays tax. Everyone that enjoys capital growth pays tax. Just looking at the direct corporate tax rate is grossly myopic.
> Everyone they employ already pays tax. But this is their tax they pay on the money _they_ earned. Not sure why this is okay for corporations to appropriate this tax as theirs. > Everyone that gets a dividend pays tax. In my country dividend tax has a lower rate. You have this insanity where a person making money out of their hard work pays more tax than a person living off dividends and doing nothing.
It's not insanity. They worked and paid taxes on the money they used to buy those dividend bearing stocks, why punish them?
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#308Earlier quoted context omitted.
So Amazon is loosing money is the US? Starbucks is loosing money in UK and Disneyland is loosing money in France? Please shifting profit is not normal there is no reason a company can do it and average people can't.
In many industries it's hard to quantify the value of imports from the parent company. What is the value of the software engineering services Amazon US provide to Amazon UK, maintaining amazon.co.uk? Because, rationally, that's an expense of the UK company. How much in the Starbucks brand worth? How do you distinguish a franchise from a subsidiary? If Starbucks split in two, with Starbucks Corporation maintaining onl…
The very, very easy solution is for every corporate entity to be taxed on revenue in each jurisdiction. E.g. if I am in the UK and I spend £4 on a coffee in Starbucks then their legal entity in the UK now owes the taxman £0.40 (for example). How they pay their operating costs and internally transfer the remainder of £3.60 to their parent company is up to them.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#309Earlier quoted context omitted.
> it doesn't really make sense to tax long-term capital gains as income, especially under a progressive system. Yes it does. OTOH, it doesn't make sense to not have a means of spreading out irregular income by recognizing it for tax purposes over several years in advance of realization if it can be anticipated, or deferring it over several years otherwise, in a progressive tax system. Which is why you should provide…
I posted elsewhere that it would make sense to allow individuals to apply some smoothing to their yearly income to reduce the impact that progressive brackets have on highly variable incomes. so let me rephrase my statement about capital gains. it doesn't make sense to treat LTCG as income unless we first make significant changes to the way we assess income tax in the first place. obviously this would be a lot more c…
I disagree. LTCG as income without smoothing makes exactly as much sense as taxing regular income without smoothing does.
Yes, there’s a strong case for smoothing. There’s, independently, a strong case for not structurally favoring capital income and not structurally disfavoring labor income. While it is desirable to address both of those (and doing so simultaneously would be a good idea since there is no conflict), there is no dependency between them.
(Likewise, indexing capital asset basis values for inflation is a third thing that there is a good case for, but neither of the other two things depends on it to be a good idea; I’d oppose furthering the favoring of capital by doing it without first taxing capital income as income, though.)
> obviously this would be a lot more complicated.
Smoothing doesn’t have to add significant complication. The essence can boil down to:
(1) a taxpayer may freely recognize any amount of as-yet-unrealized income for tax purposes in any tax year and pay appropriate income tax on it. Any amount of the unused balance may be freely applied to reduce taxable income in any future year to no less than $0 (with one exception, see below.) Unused balances are indexed for inflation.
(2) a taxpayer may defer to the following year recognition of any amount of income over the greater of the top of the lowest marginal rate bracket or prior year taxable income (after applying any deferrals or advance recognition), with thr caveat that no more than 90% of any previously-deferred income may be deferred again.
(3) In final taxes after death, all remaining advance/deferred amounts are applied, with negative taxable income resulting in a refund calculated by applying the minimum marginal rate to the balance.
Re: Netflix Made Record Profits in 2020, Paid a Tax Rate of Less Than 1 Percent
#310Earlier quoted context omitted.
The easy ( yeah right ) fix would be single universal sales tax. You buy something - you pay. Does not matter corporation or person. No expense claims on that either. This will also eliminate need to count assets as the taxes has already been paid on those. Tax can be progressive with the possibility of rate going negative for low income people.
I used to think this was a good idea but it ends up really, really favoring big corporations. Startup A wants to get into a market and it buys Zoom licenses, GSuite, AWS servers, etc and pays a hefty tax bill. Microsoft wants to get into that market? They don't have to buy any of that stuff, they already own everything. No tax dollars, lower cost to the incumbent.