Comments on: A simple fix for the divisive U.S. corporate tax debate http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/ Sat, 21 Jun 2014 15:30:06 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: webimax2013 http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-876 Tue, 01 Oct 2013 15:05:27 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-876 This is an interesting article. I did not know that married couples pay different taxes. I am studying law so I really wanted to learn more about ways the IRS takes money from people who do not pay their taxes. I decided to look up IRS wage garnishment and I found some interesting stuff. It seems like wages are a power tool used by the IRS.

]]>
By: MossyMorse1118 http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-874 Thu, 29 Aug 2013 13:52:14 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-874 Prof. Summers, as usual, offers a lucid explanation of a cloudy situation.
Let’s pursue his library fine analogy a little further. A library book held for, say, 20 years has been a useless combination of ink and paper for most of that time. It has sat on somebody’s shelf gathering dust, its paper browning under the onslaught of our acid-laden air, or been forgotten under a pile of old clothes in an attic or cellar, adding precious little to the world’s ever-diminishing supply of knowledge, wisdom or amusement. If the book is ever returned, with the usual accompanying newspaper feature whimsies, the homongous fine of $14,000.00 or so is forgiven. The book,with its foxed pages and crumbling binding, is rarely returned to the library shelves, being, instead, pulped, in essence flushed away.
An alternative scenario: the returned book is sent to someplace where there are few books, and where the printed word is still honored. There, readers, hungry for any book, will benefit from it.
In the same way, why can’t offshore profits be used locally as some sort of Financial Peace Corps avatar — with the corporation receiving kudos and credit (and perhaps credits against taxes as well)? It might partially substitute for US overseas loans to Third-World countries as well.

]]>
By: RetCombatVet http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-873 Sat, 24 Aug 2013 15:41:53 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-873 Summers should know. He is part of the problem. Just look at his tenure in Clinton’s cabinet.

Why not look at his current part of the problem? There are in reality only a small number of individuals that agree on the stories they feed to the public. Not whether to change anything or not, just the storyline.

]]>
By: JP007 http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-871 Fri, 12 Jul 2013 03:51:08 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-871 Correction to my prior comment. That would not work since governments are perpetual motion machines powered by cronies, kickbacks and corruption. Never mind.

]]>
By: JP007 http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-870 Fri, 12 Jul 2013 03:48:58 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-870 As is usual the solution are laws that are already on the books, just not enforced against public companies. Treat them like small family owned businesses and rape them. Equal protection under the law is the best disinfectant, kind of like legal sunshine Mr. Brandeis.

]]>
By: JamesSutton http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-869 Thu, 11 Jul 2013 03:47:30 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-869 A simpler solution is to establish a minimum flat “loyalty tax” on corporate unadjusted gross income worldwide, deduct foreign taxes, then require corporations to pay that, AMT or regular income tax, whichever is greater. Then everyone pays something, including the poor, who would be relieved by an increase in refundable credits equal to their loyalty tax. This makes foreign profits and repatriation irrelevant, and everyone pays something, both natural and fictional “persons.”

]]>
By: brotherkenny4 http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-868 Tue, 09 Jul 2013 14:06:09 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-868 The tax laws are just fine if your a corporation and since corporations control the politicians it will only get better for them. Our elected officials know who is really in charge and as much as they like to pander to the masses to get elected, they dare not offend the owners of the country. That’s why you get all that false concern from the politicians. It’s really an acting job that they have. They act like they care about the “people” and the “country”, but it’s just a ploy. It won’t change either, since the electorate is convinced that the economy is important to them, and assumes the stock markets signify the true economy. If the stock markets tank the current adminstration will get the blame and the political actors will shift. Neither party would do anything different though, since they are both in this same trap. So, since the american people are likely to defend the corporations because they are convinced it benefits them directly we cannot have any change to the current approaches that see the middleclass shrinking and the wealthy obtaining ever increasing amounts of money. Most amazing of all is the simplistic ideologies with which both the parties ensnare the common masses. One party says cut taxes for the wealthy and the other says spend on social welfare. Neither being sophisticated enough to take reality into account, but yet apparently easy enough for the average serf to understand and believe in.

]]>
By: Gaute http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-867 Tue, 09 Jul 2013 10:36:14 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-867 “Right now U.S. companies are holding nearly $2 trillion in cash abroad.”

No, they don’t. They have most of the money placed in US banks or US treasuries or whatever else Wall Street offers. But they are holding it in the US in the name of a foreign entity. So all that “cash abroad” is already back in the US. It is only the tax law that do not recognize this fact.

]]>
By: UauS http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-866 Tue, 09 Jul 2013 03:26:27 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-866 The main issue is not the taxes, laws, loopholes, etc., but the fact that corporations have no citizenship and no allegiance to anything, but the bottom line (a.k.a. profit)… which is why Western capitalism shoots itself in the foot by growing monsters like pseudo-capitalist actual-communist China that may very well devour the former in the end.
So, the real question to me is how to save capitalism from itself and if it’s not too late already?..

]]>
By: Acetracy http://blogs.reuters.com/lawrencesummers/2013/07/08/a-simple-fix-for-the-divisive-u-s-corporate-tax-debate/#comment-864 Mon, 08 Jul 2013 23:41:51 +0000 http://blogs.reuters.com/lawrencesummers/?p=347#comment-864 Surprising how Summers completely ignores all the special tax rules that benefit just specific sectors: 1038 exchanges for real estate investment, depletion allowance for the oil industry, K1 limited partnership income, REITs, and of course the notorious preferential tax rate for private equity.

Plus the only the mega-mega companies can take advantage of off-shore revenue booking and the myriad ways taxes are avoided. Not the case for small firms (less than 100 employees) who are actually the job creators for the US economy for the past 30 years.

Huge powerful lobbies like the Chamber of Commerce are only concerned about the mega corporation enjoying the lowest effective tax rates in modern history. Summers should know. He is part of the problem. Just look at his tenure in Clinton’s cabinet.

]]>