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I don't see how the money held outside the US is connected to tax code simplification. If anything, taxing that money would make the tax code more complicated,
by dietrichepp 11y ago
I don't see how the money held outside the US is connected to tax code simplification. If anything, taxing that money would make the tax code more complicated, not less complicated.
- ams6110 11y agoThe main issue is it would be taxed too highly if it were brought back, thus it's held outside.
- sna1l 11y agoMy thought: More complicated tax code --> More loopholes, so Less complicated tax code --> Less loopholes. But I'm not tax expert by any means.
- devishard 11y agoIt might be complicated to tax that money, but if we simplified tax code there would be fewer complicated ways in which people can legally get the money offshore in the first place. Tax simplification is a prevention, not a cure.
- icebraining 11y agoIt wouldn't help in the mentioned cases, though - the money was received offshore in the first, it didn't "go" there.
- lijason 11y agoIs that true? I'm not an accountant, but I thought a lot of companies do things like give ownership of a technology to a foreign subsidiary and then have their US operation "license" that technology at high cost to move profits overseas as well. Maybe that loophole was closed though?
- tomschlick 11y agoThe general idea is that those companies would like to bring that money back to fund various things. They can't without getting hit with a high tax rate so they keep it outside. If we simplified the tax code it would help curb the max exodus of that money and if we had a lower rate they would bring that money back in.
- ptaipale 11y agoAs far as I understand it's not really an "exodus" of money. It's money that these companies have made through sales outside the US, and are not bringing in to US because it is better to keep it abroad and possibly invest there.