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Arguably it was largely workers performing R&D inside of the US which resulted in the creation of these products. So there is at least a bunch of income, payrol
by spoonie 10y ago
Arguably it was largely workers performing R&D inside of the US which resulted in the creation of these products. So there is at least a bunch of income, payroll, property taxs, etc. paid already inside of the US.
Now, if the company were to move all of their R&D to Bermuda & Ireland like they moved their IP, we could argue that they deserve to pay the ~0% corporate income tax on their overseas profits.
- AnthonyMouse 10y ago> Now, if the company were to move all of their R&D to Bermuda & Ireland like they moved their IP, we could argue that they deserve to pay the ~0% corporate income tax on their overseas profits. This is actually the thing that politically prevents such taxes from being collected. You have these companies that spend e.g. ten billion dollars on R&D that produces a hundred billion dollars in profits. Right now the ten billion dollars they spend on R&D gets taxed in various ways (payroll/sales/property taxes) in the place they do the R&D, which is very good for that place. What happens if you then demand that on top of that, 35% of the hundred billion be paid to the same place? You just made it actually profitable for them to go to California, find some engineers, and pay them five times the previous market rate plus their relocation costs to move to Ireland and set up shop there.