What Is Tax Deferral?
The Obama Administration is proposing to raise more than $100 billion from American multinational corporations by limiting in some way the ability of US companies to defer tax on profits earned abroad. The premise behind the proposal is that by raising the taxes paid on the foreign profits of US companies earned abroad, the companies will somehow have more incentive to locate their operations here in the United States. The proposal, however, is flawed and fails to recognize that in the increasingly global economy where capital flows freely across borders, the United States can no longer expect other countries to follow its policies. The proposal will penalize the foreign operations of US companies operating abroad and make it more difficult for them to compete with foreign companies. To learn more, go to: www.taxfoundation.org
This article was published at Accounting Services of Charlotte, NC
Tagged Deferral
101ericrobertOctober 31, 2011 at 6:32 pm
who sells stuff in china we make stuff there
bluefootedpigOctober 31, 2011 at 6:59 pm
@LoveToday8 that would work if we were still a manufacturing country. we are much more tech and service. The great thing about tech and service is that the average income is much greater. The problem is people want to get paid much higher than what your skillset is worth. So instead of trying to force a halt on technology and improvement, you could learn the new system and go with it. That is what happened during the industrial revolution, and now that is happening during the tech revolution.
LoveToday8October 31, 2011 at 7:40 pm
@bluefootedpig We could help the poor people by letting them have an opportunity to obtain a manufacturing job. Right now we are losing solidly middle-class manufacturing jobs to China, Mexico, Vietnam, etc. due to corporate greed. If we had more manufacturing jobs here, we could afford to pay extra for American-made goods. I personally don’t mind paying extra to support American workers.
We pay a price for those low prices=less jobs.
Wal-Mart knows what they are doing.
LoveToday8October 31, 2011 at 7:51 pm
Once you start making your goods in China and Mexico, you’re no longer an “American company. ” There are plenty of people here in the U. S. that would gladly take those manufacturing jobs BUT corporations are in a global race to drive down rages (globalization) so they’d much rather pay someone in China pennies on the dollar than pay an American worker a decent wage with benefits. We also need universal health care provided by the U. S. government. That would help businesses save money.
JasonBeeArrOctober 31, 2011 at 8:29 pm
This ad is implying the German company doesn’t pay ANY taxes to Germany. Could that be true?
zenofsongOctober 31, 2011 at 8:58 pm
@revolutiongames2004
If the common people could afford the services of the accountants and lawyers that corporations can easily afford they’d be paying nothing on taxes every year. I LOVE the idea of putting the taxes on those who can afford it, but this is too little too late. I have no doubt that corporate fatcats will expertly dodge this tax as well.
dead8401October 31, 2011 at 9:01 pm
America has tons of giant international corporations, there is nothing coming out of Germany that is going to compete with McDonald’s or Coca Cola.
revolutiongames2004October 31, 2011 at 9:31 pm
normally id be against this sort of thing, but when corporations decide that theyre going to find every way they can to “cheat” on taxes (including bribes to congress), this extra tax really doesnt seem like that much. Aside from this: middle class americans are being duped into more taxes, because the governement is being cheated out of an estimated 1/2 of its money by corporate america. (Source:Perfectly Legal, David Cay Johnston)
altha2008October 31, 2011 at 9:53 pm
want fair play and free trade does not offer that
besides ever 20 years or so a COn would get into office and job the taxes down to around 10% then all people who have off shores accounts bring there money home
altha2008October 31, 2011 at 10:14 pm
want a fair playing field for american companies espcailly the small mom and pop comanies not big global companies
there has never been FAIR TRADE AGREEMENT this would make it fair
bluefootedpigOctober 31, 2011 at 10:30 pm
So y0ou want to hurt the poor? making them pay more for the same products? If someone is having difficulty paying for an american made product and the cost of that, then what would change if foreign companies had to pay more? All you are doing is hurting the poor of the country who rely on cheaper products in order to survive.
Also, you are then supporting bad business practice. Companies that do well to keep prices down shouldn’t be penalized.
altha2008October 31, 2011 at 11:15 pm
charge forgien comanies a import tax that will caused the products the same if the make it there and ship it then to make it here
guatayNovember 1, 2011 at 12:02 am
While foreign nations decrease tax rates to attract foreign companies/investment, democrats seek to raise taxes on U. S. corporations. . . so dumb. S Korea has no foreign investment tax, Germany recently lowered theirs, Mexico’s is abt 6% along the border, Russia has proposed lowering theirs, & so on. Dems don’t get it: lowering U. S. corp taxes to globally competitive rates enables corps to thrive, enabling expansion/projects, which creates jobs. JFK knew this: see JFK tax cuts on utube. MBA grad.
stevejns111November 1, 2011 at 12:41 am
You’re an idiot
23lisanNovember 1, 2011 at 1:01 am
At the beginning it says it’s an issue before Congress. . . but is it a current bill or something they are tossing around? I visited the website, but found no further information. A search on the Library of Congress webpage brings up several results for “tax deferral” in the curent congressional session. I’d love to share this video on facebook, but before I do I need to know exactly what bill this is so I can let my friends and family know what to refer to in a letter to their rep.
bluefootedpigNovember 1, 2011 at 1:17 am
so you dont understand basic economics. Companies that dont grow can’t hire as much, also, why work in america when you can work in china for less. Basically leave america. The biggest “american company” is boeing, and it only has 35% of its business in the US. So tell me, if the biggest company only does 35% of its business in america, and we tax them more, you think they will continue?
lazytimewasterNovember 1, 2011 at 1:46 am
isn’t the whole point so that US companies don’t go to China in the first place??!! The extra %10 tax looks good to me. Then we can employ more Americans, and at a decent wage, instead of taking advantage of Chinese Sweatshops. I’m all for the tax.
ForceSmartNovember 1, 2011 at 2:28 am
Damn! This is exactly right, and I can’t see how Democrats and liberals can’t get this.
yourboycalNovember 1, 2011 at 2:47 am
/watch?v=HcFUpZdffSs
more here !
subscribe =o
rizvisa1November 1, 2011 at 3:24 am
only dudes that get any benefit are the CEO and top management. Look at the gap between salary and rate of growth in the difference. The corp tax rate is not the only issue. Like it or not, CEO make more if company make more. So it is cheaper to hire a guy in India or China to do here. So I am not inclined to believe that corp tax rate reduction will have a great and sustain impact.
artbrickNovember 1, 2011 at 3:33 am
What if the US government lowered the corporate rate to 20%? Do you think corporations might come back to the US? How many dudes in America will benefit if corporations had tax incentives to be in the US (not leave it)?
CaliforniaArchitectNovember 1, 2011 at 4:14 am
Obama’s plan to raise taxes on U. S. corporations doing business overseas is a RISKY SCHEME. Remember that phrase from a few years ago? In this economic depression, raising taxes won’t do anything other than to reduce profits for everyone in the U. S.
ganzmaNovember 1, 2011 at 4:21 am
Finally, someone talking sense about taxes. Obama’s spin is wrong and dangerous for America. Most countries only tax income earned in their country. The US is one of two major countries that does not. We have the second highest corporate tax rate in the world. With respect to having 18,000 companies registered with one address in Bermuda. why is it ok to have 300,000 companies registered with one address in Delaware and no operations there. The better US companies do the better it is for US jobs.
thatbointhathouseNovember 1, 2011 at 5:20 am
In 1908 a lady named sally cusa was in the woods looking for a dog until a ghost killed her so if your reading this u will find a bloody body hanging there haunting you and will kill you and your family and if you want it to stop just send this to 6 videos in 30 min or this will happen good luck
zevgreenNovember 1, 2011 at 5:51 am
This is voo-doo economics. Almost no corporation pays 35% tax. About two-thirds of U. S. companies and foreign firms doing business in this country paid no federal income taxes from 1998 to 2005, according to a study by the GAO. The report also said that about 1/4 of large corporations – ones that had more than $250 million in assets or $50 million in gross receipts – paid NO taxes.
Fair trade tariffs PROTECT U. S. workers. Tariffs would make a level playing field, not prevent it.