Foreign profits tax break gets boost in Senate

Jan 2008
32,903
9,709
Vertiform City
Foreign profits tax break gets boost in Senate

The corps are at it again, getting their government to make us pay their taxes. This is unbelievable.
Very interesting. A link to a new thread. :)

Yeah, this is the type of stuff we're up against.

This is exactly it.

Our Senate is CORRUPT, that's what I've been trying to tell you for almost two years now.

In this day, at this time, they're exempting corporations from paying taxes on business they're doing overseas - in other words, they're providing an INCENTIVE to ship all our jobs overseas. Corporations are BETTER off if they hire foreign workers and do all their business overseas.

I mean, HOW STUPID DO THEY THINK WE ARE? ???

:mad:
 

michaelr

Former Staff
Dec 2006
89,668
6,643
FEMA Region 10
Very interesting. A link to a new thread. :)

Yeah, this is the type of stuff we're up against.

This is exactly it.

Our Senate is CORRUPT, that's what I've been trying to tell you for almost two years now.

In this day, at this time, they're exempting corporations from paying taxes on business they're doing overseas - in other words, they're providing an INCENTIVE to ship all our jobs overseas. Corporations are BETTER off if they hire foreign workers and do all their business overseas.

I mean, HOW STUPID DO THEY THINK WE ARE? ???

:mad:
Oh Nonsense, they don't care how stupid we are or not, they will do what they do no matter.

I am fully aware of the corrupt Senate, hell the gaggle of criminals in DC are just organized crime.
 
Jun 2011
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Exactly! People aren't getting this. We are paying for our jobs to go overseas.
Should toyota pay the us government for profits made in europe?

They pay tax in europe.....and if you think about it why shouldn't europe tax THAT corporation for the profits made in the US?
 

NiteGuy

Former Staff
Jul 2011
17,044
13,694
Teardrop City
Should toyota pay the us government for profits made in europe?

They pay tax in europe.....and if you think about it why shouldn't europe tax THAT corporation for the profits made in the US?
Well, this is a really fucked up analogy.... Toyota is a Japanese company.

If Chevrolet builds cars in the US, and ships them to Europe for sale, then yes, Chevy should be taxed for those sales here, as well. The cars were produced in the US, not in Europe. The profits on those sales are coming back to this country - why shouldn't Chevrolet be taxed on those profits?
 
Jun 2007
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Well, this is a really fucked up analogy.... Toyota is a Japanese company.

If Chevrolet builds cars in the US, and ships them to Europe for sale, then yes, Chevy should be taxed for those sales here, as well. The cars were produced in the US, not in Europe. The profits on those sales are coming back to this country - why shouldn't Chevrolet be taxed on those profits?
that seems like an incentive to make them else where also.
 
Jun 2011
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that seems like an incentive to make them else where also.
GM's export of a Chevy wouldn't be a foreign profit, it would be a domestic one, that sale would show up here, the company that imports the car buys it and has the reverse lodged as a cost of goods sold and then sells it for a profit of course. In many instances that foreign subsidiary, in this case we'll just say its Opel, Opel will pay tax to Germany on its operations THERE.

That corporation is a German corporation owned by shareholders including GM {I really don't know if GM still even owns Opel}. Now when Opel pays out dividends, those dividends can be paid to GM and in the US there is 'dividend deduction' because otherwise the double taxation regime would become a triple taxation regime, but to qualify you have to own a special percentage of that OTHER corporation otherwise you only get a PARTIAL deduction. (You can see the tiers HERE: http://en.wikipedia.org/wiki/Dividends_received_deduction)

Toyota is a Japanese corpporation, for sure, and no doubt they own a significant portion of Toyota Motor Sales, Inc. But that doesn't mean Toyota Motor Sales is a 'Japanese' corporation, in a layman's sense it is, but its really a Delaware corp owned by its shareholders (whoever they may be and i have no doubt that means Toyota Japan) and they pay tax here and it would be absurd of course to suggest that Toyota Motor Sales, Inc should pay tax here on Toyota Japan or Toyota "Europe"

There's no doubt they're playing games with transfer pricing, this is exactly how GE pays no tax, basically they move the profit from here to GE's foreign subsidiaries and I think the IRS audit will actually catch that.

They really should move from corporate INCOME taxes to taxes on gross sales which are much more transparent.....the downside to those taxes is that corporations that lose money will still pay tax....
 
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freecell

Former Staff
Jul 2006
6,770
893
Cary
Should toyota pay the us government for profits made in europe?

They pay tax in europe.....and if you think about it why shouldn't europe tax THAT corporation for the profits made in the US?
I am not talking about that. They are giving them tax breaks in the US to send these jobs elsewhere.