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A large percentage of U.S. corporate ownership is held by foreign taxpayers that would not be subject to U.S. taxation on dividends or capital gains absent a fa
by gamblor956 5y ago
A large percentage of U.S. corporate ownership is held by foreign taxpayers that would not be subject to U.S. taxation on dividends or capital gains absent a fairly large and radical change in tax law, including breaking more than a hundred tax treaties.
It's much easier to simply impose an AMT and eliminate a relative handful of expense shifting mechanisms (many of which are already covered by a regime known as "transfer pricing").
- tonyedgecombe 5y agoThey would be liable for tax on dividends in their own country, just as US investors in non US companies would be liable for tax at home. No radical change needed (besides abolishing corporation tax).
- gamblor956 5y agoThat's not universally true, because many countries don't tax foreign-sourced income of their citizens, (meaning in this context, dividends paid by a corporation not incorporated in the taxpayer's country of tax residence).
- tonyedgecombe 5y agoThat doesn't require "radical change in tax law, including breaking more than a hundred tax treaties." to fix though. Those countries can deal with it as they see fit.