Update: PayPal Holds Half of Indie Developers' Money

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albino boo:

NameIsRobertPaulson:

The only reason it is legal is because the government refuses to close the loopholes in the tax code that MAKE it legal. In short, the criminals are running the banks. Companies finance campaigns for politicians, and in exchange, politicians don't close the loopholes, and the rest of the country gets a shiny steel dildo up the ass.

The reason why its legal because governments can't enforce their law outside of their country. This leads to competition between nations to create less onerous tax regimes. If the US government decides to effectively impose double taxation on foreign profits, which what is required to to make these schemes unattractive, companies will just move their headquarters to another country. This will lead to the reduction of tax income to a lower level than is currently paid. The only way to stop this is for rules to be introduced globally to prevent tax variations. This is very unlikely because even developed countries like Ireland are reliant on income brought in by their low corporate tax rate. Seeing that the Irish economy is in very bad state, the only way that Ireland could afford to agree to global tax rules is by slashing public services and pensions.

I understand WHY it happens. That said, when the companies doing this could pay off our national debt in 5 years BY THEMSELVES, it bothers me when politicians blame working joes for the economy being in such bad shape.

NameIsRobertPaulson:

albino boo:

NameIsRobertPaulson:

The only reason it is legal is because the government refuses to close the loopholes in the tax code that MAKE it legal. In short, the criminals are running the banks. Companies finance campaigns for politicians, and in exchange, politicians don't close the loopholes, and the rest of the country gets a shiny steel dildo up the ass.

The reason why its legal because governments can't enforce their law outside of their country. This leads to competition between nations to create less onerous tax regimes. If the US government decides to effectively impose double taxation on foreign profits, which what is required to to make these schemes unattractive, companies will just move their headquarters to another country. This will lead to the reduction of tax income to a lower level than is currently paid. The only way to stop this is for rules to be introduced globally to prevent tax variations. This is very unlikely because even developed countries like Ireland are reliant on income brought in by their low corporate tax rate. Seeing that the Irish economy is in very bad state, the only way that Ireland could afford to agree to global tax rules is by slashing public services and pensions.

I understand WHY it happens. That said, when the companies doing this could pay off our national debt in 5 years BY THEMSELVES, it bothers me when politicians blame working joes for the economy being in such bad shape.

For a start I am not American. The national debt of the untied states stands at $16 trillion, therefore to repay the national debt in 5 years would require the payment of $3.2 trillion a year. This figure is just short of the entire size of the German economy ($3.6 trillion) I don't know where you got your figures from but I doubt US domiciled companies could afford to pay an additional tax burden equivalent to the German economy and remain in business.

albino boo:

NameIsRobertPaulson:

albino boo:

The reason why its legal because governments can't enforce their law outside of their country. This leads to competition between nations to create less onerous tax regimes. If the US government decides to effectively impose double taxation on foreign profits, which what is required to to make these schemes unattractive, companies will just move their headquarters to another country. This will lead to the reduction of tax income to a lower level than is currently paid. The only way to stop this is for rules to be introduced globally to prevent tax variations. This is very unlikely because even developed countries like Ireland are reliant on income brought in by their low corporate tax rate. Seeing that the Irish economy is in very bad state, the only way that Ireland could afford to agree to global tax rules is by slashing public services and pensions.

I understand WHY it happens. That said, when the companies doing this could pay off our national debt in 5 years BY THEMSELVES, it bothers me when politicians blame working joes for the economy being in such bad shape.

For a start I am not American. The national debt of the untied states stands at $16 trillion, therefore to repay the national debt in 5 years would require the payment of $3.2 trillion a year. This figure is just short of the entire size of the German economy ($3.6 trillion) I don't know where you got your figures from but I doubt US domiciled companies could afford to pay an additional tax burden equivalent to the German economy and remain in business.

According to Newsweek, the top 15 Fortune 500 companies (Including Apple, Nike, and Microsoft) hide $740 billion in profits every year, with the Top 50 estimated at $1.2 trillion.

SOURCE: http://www.uspirg.org/news/usp/new-study-82-top-100-companies-used-tax-havens-2012

NameIsRobertPaulson:

According to Newsweek, the top 15 Fortune 500 companies (Including Apple, Nike, and Microsoft) hide $740 billion in profits every year, with the Top 50 estimated at $1.2 trillion.

SOURCE: http://www.uspirg.org/news/usp/new-study-82-top-100-companies-used-tax-havens-2012

The rate of tax that the fortune top 50 is already paying on those profits is 35%. To gain the $3.2 trillion year you would need to have tax rates approaching 80%. Rates that high will make shareholders sell their stock and cause a stock market crash of the scale of 1929 and 2008. Recent experience has shown that severe economic downturns will reduce the total tax paid because of reduced profits.

Fundamentally, high rates of tax on profits act as disincentive to make a profit. In the early days of setting up of my business I was working 70-80 hours a week and was dancing on the edge of bankruptcy for about 2 and half years. Now I employ 28 people and my company not only pays corporation tax but also payroll taxes on the employee's pay. The people that work for me also pay income tax on their wages. Why would anyone work that hard and take such a risk to pay the state 80% of the profits? http://en.wikipedia.org/wiki/Laffer_curve

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