“It's a problem caused by US and US corporation and now they come to provide a solution”
Shouldn’t the responsibility for US corporate problems be (presumably) addressed by the US government? I’m not understanding your point here.
Shouldn’t the responsibility for US corporate problems be (presumably) addressed by the US government? I’m not understanding your point here.
Most countries are mad about multinationals, most of them rich US multinationals. If the US would do a proper job of taxing their own corporations none of this would be necessary.
Interesting how this is just in time for the Dutch sandwich scheme to expire. Clearly something else was missing!
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?
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.
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.
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.
Currently, US corporations have a minimum tax of 10% on global income or 20% on US income; sounds like the numbers are proposed to change to 15% and 28% (or something; NYT paywall is loading too fast today, and it's a proposed law so the details aren't set and not worth fighting over); and the US is saying hey, these guys are going to pay 15% on income from your country, you may as well have them pay it to you instead.
The AMT on global income was part of the Trump tax changes, and is a departure from the full corporate rate on global income, but only due when/if money made it back to the US.
I imagine a next step would be charging multinationals headquartered elsewhere but operating in the US the AMT on their global income. That's kind of far reaching though, so if they can get a few major countries on board instead, that's better.