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The USA is alone in the world with it's odd repatriation laws. If a company pays x% tax somewhere overseas - they still have to pay full amount of corporate ta
by jomamaxx 10y ago
The USA is alone in the world with it's odd repatriation laws.
If a company pays x% tax somewhere overseas - they still have to pay full amount of corporate tax when repatriating - meaning US companies are 'double taxed'.
I.E. They pay 30% in Russia, then another 35% in the US.
That's crazy.
In most countries, you pay tax in the jurisdiction overseas - and then a 1-4% 'repatriation' fee bringing it home. This is more rational.
The US also has crazy high corporate taxes - some of the highest in the world - added to this a crazy bunch of odd loopholes.
The US tax system needs to be cleaned up here:
A) Small repatriation tax, and don't double tax foreign sales.
B) Reduce corporate taxes to make them more competitive with international standards.
C) Get rid of the loopholes and actually make corps pay the tax.
Obviously - the EU needs to clean up it's act as well.
Sane, rational taxation would have solved the repatriation problem - and the EU/Ireland tax avoidance problems a long time ago.
Unlike healthcare or some other unwieldy subject - this one is easy. Everyone knows what needs to be done. Nobody seems to be willing to do it.
- Veratyr 10y agoDoes anyone have insight into why this is? The US seems uniquely aggressive in the way it pursues its citizens' and corporations' international earnings. Why is the US the only country that does this? Is it just greedy? Does it feel more entitled to taxing those things than other countries? Is there a historical or cultural reason it ended up this way?
- jomamaxx 10y agoI think it's because the laws were made a long, long time ago when internationalism didn't really exist.