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How else do you solve this in the US? Company A sells all of its IP to Ireland. They have the Irish company charge them 100% of the profits for IP. Poof. No US
by onlyrealcuzzo 5y ago
How else do you solve this in the US?
Company A sells all of its IP to Ireland. They have the Irish company charge them 100% of the profits for IP. Poof. No US taxable income.
What's your magic beans solution for this beside what the IRS plans to do?
- coliveira 5y agoIt is very simple: just make corporate profits for US corporations (or more sensibly, the difference in taxes) taxable on the US, wherever it is made. This is already the rule for individuals.
- deleted 5y ago[deleted]
- onlyrealcuzzo 5y ago"Wherever it is made" is simple when it comes to tech. And, anyway, almost nothing tech is made in the US. The IRS has a (separate?) issue to deal with this - that countries will pay tax primarily based on the country where the sales take place.
- pseudo0 5y agoWhy not just cut the corporate rate to 0 and raise the necessary funds through a VAT? No amount of fancy accounting tricks will eliminate companies' dependence on the US consumer market.
- onlyrealcuzzo 5y agoBecause the Federal government doesn't have a sales tax? This system is easier than getting all 3 branches of the government to impose a VAT. And also, that doesn't solve the problem. If you're Apple - you have only pay taxes on your sales in the US. If you're a smaller company, you pay taxes on all your profits, plus a VAT on your sales in the US.
- pseudo0 5y agoWhat's stopping the federal government from implementing a VAT? I realize there's a ton of legal and political inertia, but theoretically it seems like it would be an improvement. In an ideal system everyone would charge a VAT rather than a corporate tax, resulting in a level playing field for foreign profits as well.