2 ms·
Alright here are my new loopholes to evade your amendments: I'll set it up so that my other company in the other country is sharing profits with my main company
by dontreact 9y ago
Alright here are my new loopholes to evade your amendments:
I'll set it up so that my other company in the other country is sharing profits with my main company. Maybe I'll have a family member or someone I trust actually own that company.
Perhaps this doesn't work for some reason that already exists in the tax code, but I've already met the letter of the law that you spelled out here.
Obviously that would be easy to fix with some further amendments but the problem is that this back and forth we are having is happening at a larger scale through the years. And in real life I have 10-1000 times as much money to figure out how to defeat or get around your tax codes.
- cm2187 9y agoI think what you are describing is a company not based in the US not having to pay this tax. Effectively companies fleeing the US. Agree that this would likely be a consequence. But that's the price to pay to maintaining high tax rates. Countries don't like competition but the reality is that this competition exists among them.
- dontreact 9y agoI don't think Apple and Google can flee to Bermuda or Ireland and that's not what I was talking about. The employees aren't going to move. I was just pointing out a simple loophole in the specific rules the you proposed as a rhetorical tool: it's very, very hard to write a loophole free tax code in light of the inherent complexity of having many nation states and multinational corporations. At the very least, it should become a cultural norm for companies like Facebook, Apple and Google to report tax loopholes even as they exploit them.