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Without such rules as the article describes, businesses predominantly active in California would just incorporate in Delaware and say "You can't touch us!"...
by netsharc 5y ago
Without such rules as the article describes, businesses predominantly active in California would just incorporate in Delaware and say "You can't touch us!"...
A bit like how Starbucks, Amazon, Apple in Europe all have the suffix "Luxembourg, sarl" because being incorporated there means they can pay less "local" taxes in other EU countries, thanks to Luxembourg's tax-haven-establishing PM who even got the job of President of the European Commission afterwards. Thanks for funding the penis-rocket, Jean-Claude!
- AdrianB1 5y agoThe countries you mention pay employee taxes and VAT in the countries where they operate (employ or sell). This is huge in comparison with the profit tax, so operating from Luxemburg is shaving a few percent of the overall total, nothing more. Each other state gets their part in full. What California does is very, very different.