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Well, if those foreigners aren't using our services why are we taxing them?
by anonuser123456 7y ago
Well, if those foreigners aren't using our services why are we taxing them?
- Retric 7y agoThe companies are using our services, which indirectly benefits these investors. Media companies for example benefit from US enforcement of copyright law. Similarly enforcement of contracts and private property, plus all the little things that allow the US to be such a prosperous society.
- unclesams-uncle 7y agoBecause the US can. The US capital markets are still the best in the world. Investors put their money into the US market because the returns are better than in most places and the US legal system protects investors. The US withholds 30% of all dividend payments to foreign investors (although tax treaties can effectively reduce this amount). They can do this because there's enough foreign demand for US stocks. When the day comes that the US is no longer the most attractive place for stock market investors, then perhaps the US will look at changing the withholding tax to bring in more capital.