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Ireland joins OECD International Tax agreement

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Re: Ireland joins OECD International Tax agreement

#91

Post by zdragnar »

alex_young wrote: post #77
harikb wrote: post #47

Earlier quoted context omitted.

I meant would it incentivize a 749 revenue company to lose money to save on the 2.5% extra tax

What you're describing is called a Progressive Tax system: https://en.wikipedia.org/wiki/Progressive_tax

Most progressive tax systems only have you pay the higher rated on the amount in that bracket to avoid the disincentive.

More accurately, this is a form of alternative minimum tax- a higher floor than the normal brackets specifically for those who cross a specific threshold.

That does carry a hefty incentive to play games with your accounting, and is ultimately rather foolish since the people it was really aimed at when introduced in the US shifted their income to capital gains instead.

Now, it is mostly a way to punish people for becoming upper middle class.

Re: Ireland joins OECD International Tax agreement

#92

Post by simondotau »

jpmoral wrote: post #73
busymom0 wrote: post #16

I have never understood the whole "tax the rich" idea and I am not rich, don't own a house or car or stocks or anything expensive. When and how will the taxes help you and me? The money just ends up going to a black hole for the government to spent inefficiently. And if you are in the US, the money gets spent on funding the military industrial complex for bombing more countries, regime changes, intelligence agencies,…

In Australia, I like: - parks - museums - libraries - free primary and secondary education - subsidised tertiary/vocational education - a (relative of course) functioning public transport system - healthcare - worker protections - other stuff I'm sure I'm forgetting Sure, government is inefficient. All large orgs are. But are you telling me for-profit corporations are going to create a society with all these things f…

Generally Government is dramatically more efficient than a comparable private business—the difference is that Government failings tend to be publicly available information, while a corporation can blow thirty million dollars on ineffective marketing and unnecessary consultants and you'll never know.

Re: Ireland joins OECD International Tax agreement

#93

Post by WC3w6pXxgGd »

jpmoral wrote: post #73
busymom0 wrote: post #16

I have never understood the whole "tax the rich" idea and I am not rich, don't own a house or car or stocks or anything expensive. When and how will the taxes help you and me? The money just ends up going to a black hole for the government to spent inefficiently. And if you are in the US, the money gets spent on funding the military industrial complex for bombing more countries, regime changes, intelligence agencies,…

In Australia, I like: - parks - museums - libraries - free primary and secondary education - subsidised tertiary/vocational education - a (relative of course) functioning public transport system - healthcare - worker protections - other stuff I'm sure I'm forgetting Sure, government is inefficient. All large orgs are. But are you telling me for-profit corporations are going to create a society with all these things f…

What are your thoughts on Australia's current lockdowns?

Re: Ireland joins OECD International Tax agreement

#94

Post by jonas21 »

14u2c wrote: post #87
jonas21 wrote: post #43

Earlier quoted context omitted.

If you're operating a business as an individual (sole proprietor), you deduct expenses and only pay taxes on profits.

I'm curious what the limits of this are. Say I create a business that receives $2000/m in contracting revenue instead of personal 1099 income. What if this business then acquires a property with a $2000/m mortgage and in turn rents that property to me for $1/mo. As all revenue is consumed by expenses would the business not be taxed? It seems like there has to be a reason why this strategy can not be used to avoid tax…

Well, you're in luck! The IRS has prepared a 56-page document on just this topic [1]. The summary on page 3 is:

> To be deductible, a business expense must be both ordinary and necessary. An ordinary expense is one that is common and accepted in your trade or business. A necessary expense is one that is helpful and appropriate for your trade or business. An expense does not have to be indispensable to be considered necessary.

Your particular example with free or below-market rent would almost certainly be considered tax evasion -- in fact, I believe this is one of the things that Allen Weisselberg is charged with [2].

[1] https://www.irs.gov/pub/irs-pdf/p535.pdf

[2] https://www.bloomberg.com/news/articles/2020-11-02/trump-per...

Re: Ireland joins OECD International Tax agreement

#95

Post by [deleted] »

Brakenshire wrote: post #9
munk-a wrote: post #6

I've always been baffled as to how this is seen as a multi-national issue. The US could always implement unilateral minimum VAT and profit[3] taxes on corporations forcing them to effectively pay whatever proportion the US demands to continue doing business in the world's largest consumer market. Just because you're only paying 3%[1] profit[3] tax in Bermuda doesn't mean you can necessarily skate around the remaining…

Governments want to tax profits rather than revenues. A tax on revenues would kill a lot of high growth businesses.

[deleted]

Re: Ireland joins OECD International Tax agreement

#96

Post by renewiltord »

rufus_foreman wrote: post #80
ramraj07 wrote: post #76

Earlier quoted context omitted.

Are you a white male? Because that's who likes it there.

Houston, Texas is often described as the most diverse city in the US, for example https://www.latimes.com/nation/la-na-houston-diversity-2017-... .

Haha, yeah, and Fremont is the “Happiest City to Live In”. People aren’t moving all across the world to be happy in Fremont weirdly.

Re: Ireland joins OECD International Tax agreement

#97

Post by seoaeu »

zz865 wrote: post #69
adgjlsfhk1 wrote: post #45

Earlier quoted context omitted.

Here's a short list of things tax money funds: Roads Schools Healthcare (in civilized countries) Making sure companies selling medicine aren't killing people Making sure companies don't dump toxic waste into rivers and lakes Note that comparing Walmart vs the government is especially funny since most of Warlmart's expansion comes from the fact that it under-pays it's workers so much that the federal government has to…

That might be true in some countries, but in the USA it goes to the military, farmers to make GMO soya beans & corn syrup, and other random corporations.

Since when does the US have no roads or schools? Also not convinced that government spending to boost food production is a bad thing. Famines are really unpleasant

Re: Ireland joins OECD International Tax agreement

#98

Post by dougmwne »

All these greyed out comments about international taxation of all things really tells you something about the current state of the HN userbase and increasing political polarization. We even managed some completely off-topic insults of Texas and Poland. Fine work fellas!

Re: Ireland joins OECD International Tax agreement

#100

Post by sanp »

kardianos wrote: post #54
Pet_Ant wrote: post #48

Earlier quoted context omitted.

Warsaw? We’re becoming the Texas of Europe, more than a little unpalatable.

Have you been to Texas? We like it here.

I think the commenter's comparison may be more to East Texas than Dallas, Austin, or Houston
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