4 ms·

>Companies have these massive cash reserves because they are massively profitable each year and need somewhere to store the excess. To be clear here, American

>Companies have these massive cash reserves because they are massively profitable each year and need somewhere to store the excess. To be clear here, American companies aren't moving cash from the US out to overseas to hide them from the IRS - this is cash that was generated overseas. For every iPhone sold in the US, Apple is paying an appropriate tax. A similar way to look at this is, lets say you moved to Russia, started a new life, with a new job, and every time you wanted to send money to your mom, the US took a 35% cut. (I'm aware that American expats still have to pay taxes as well).

kig 10y ago
It's more like you moved to London, got a new lucrative job, and paid zero taxes by squirreling all your income away into a tax haven. And then you want to send that money to your US bank account without paying taxes to anyone. As a result your new London friends have to pay more tax to pick up your bill on unpaid UK taxes, and your mom in the States has to pay more tax to pick up your bill on unpaid US taxes.
- walshemj 10y ago
  Tell me how working in London as I do I can, " squirrel away all your income away into a tax haven"
  - spoonie 10y ago
    The grandparent was making an analogy, but... Use a "non-dom"! BVI or Jersey/Gibraltar/Mann, etc. My understanding is that it's similar to money left outside of the US: with a UK non-domicile you can defer paying taxes on the cash as long as you leave it outside of the UK. The catch is, of course, you have to be able to show the money was earned outside of the UK as well (e.g. investing -- see David Cameron's father and the Panama Papers). On that other hand if you open a regular pension investment account in the UK you can defer up to 100% of your annual income tax anyway, without having to jump through hoops or be really rich.[0] 0 - https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief https://www.gov.uk/tax-on-your-private-pension/pension-tax-r...
    - walshemj 10y ago
      The number of non doms in the uk is trivial so thats a very bad anology and you do have to pay a chunky levvy in lieu of tax.

kig 10y ago

It's more like you moved to London, got a new lucrative job, and paid zero taxes by squirreling all your income away into a tax haven. And then you want to send that money to your US bank account without paying taxes to anyone. As a result your new London friends have to pay more tax to pick up your bill on unpaid UK taxes, and your mom in the States has to pay more tax to pick up your bill on unpaid US taxes.

walshemj 10y ago
Tell me how working in London as I do I can, " squirrel away all your income away into a tax haven"
- spoonie 10y ago
  The grandparent was making an analogy, but... Use a "non-dom"! BVI or Jersey/Gibraltar/Mann, etc. My understanding is that it's similar to money left outside of the US: with a UK non-domicile you can defer paying taxes on the cash as long as you leave it outside of the UK. The catch is, of course, you have to be able to show the money was earned outside of the UK as well (e.g. investing -- see David Cameron's father and the Panama Papers). On that other hand if you open a regular pension investment account in the UK you can defer up to 100% of your annual income tax anyway, without having to jump through hoops or be really rich.[0] 0 - https://www.gov.uk/tax-on-your-private-pension/pension-tax-relief https://www.gov.uk/tax-on-your-private-pension/pension-tax-r...
  - walshemj 10y ago
    The number of non doms in the uk is trivial so thats a very bad anology and you do have to pay a chunky levvy in lieu of tax.