Those islands, And states that benefit from offshore status just don't want to play the game of being useful to society/the world in order to benefit from it. They produce nothing, But get resources and money. This is stealing from system, Countries, Companies (small local ones), And people that are actually useful and beneficial in society and have a positive impact. Fortunes have been maid because somebody paid the roads, Railways, Ports, Educations, Security, Police, Bridges, Sewers. Mathematically, And rationally, Investing back trough taxes the system that has built/maintained those infrastructures and services makes total sense. Those who don't wanna pay are rich welfare leach that are killing the economy one drops of blood at a time.
Keep it simple. Make it illegal to shift funds overseas to avoid local taxes. High income earners/wealthy have been dodging for years claiming their hard work got them their wealth. If that was the case, most of us would be wealthy but we are not. We work hard but no wealth!
The society of the US is undermined because the population that are that do not evade taxes are helping the country they live in and in turn they government will give them subsidies or benefits however the upper class needn't pay anything because they use TAX HAVENS and get these benefits this is unfair as the middle and lower class are paying taxes and the upper class isn't. Another point I would like to state is to promote the economic stability of the country. I would like to reevaluate the point made by the second pros speaker. 620 million dollars is a lot of money and this overseas investment could be used for the US to prepare for an impending economic downfall. Such as the Asian financial crisis and most recently the Greek Bankruptcy. It all will affect the US and the US citizens and having this revenue and foreign investments in the US will make it to where the financial crisis wouldn't affect the US that much. I would like to point out the argument made by XavierB09120 mostly the purpose of tax havens are to invest money there that is no problem. The problem is that most of the time it is used to evade taxes and if that is your means it is absolutely illegal. It isn't illegal to hold it there but it is illegal to evade taxes using tax havens. I can say that this argument is mostly accusing tax havens of bringing up tax evasion. But ever since the Panama papers were released it is true. There should be a policy that the flow of foreign investment is controlled by the US government on tax havens. So as citizens would only use them for legal purposes and not evading taxes
By benefiting from the wealth within a country those profits have been made, said corporation owes the country its share of those profits. Avoiding paying contribution to the country undermines the economy from which the profit was made. The country requires funding to retain its standards of service upon which the profit was made and therefore it should be recompensed.
Here's a news article that should put this into perspective here: http://www.techeye.net/business/apple-fingered-as-the-worst-tax-avoider-in-the-us
Nowhere near enough to make up for the trillions in national debt that the government has accumulated under the Obama administration, but still: that puts the scope of this problem in perspective here.
What's more, people who send $$$ overseas into offshore bank accounts are often the same billionaires who, like Carly Fiorina, enjoy outsourcing jobs only to simultaneously raise their own salaries, in a, pardon me, sinfully greedy, avaricious fashion. As for enforcement, it would make sense to issue fines of the amount(s) sent overseas. For example, if Tim Cook learned that he would get a $181.1 billion fine for sending $181.1 billion into offshore bank accounts, he probably would have pulled all that money out of those accounts immediately. Making sure that burden falls on the CEO directly would also ensure that the CEO then takes the proper measures to discipline his subordinates for sending money offshore as well.
if we look to how much money is currently laying to waste in off shore accounts, we see over $21 TRILLION... yes that is TRILLION! to put that into prospective, our national debt is only about $15 trillion. So, if these off shore accounts were made illegal we would have no national debt and would still have around $6 trillion to invest within the government to create jobs and social programming... All and all, off shore accounts have ruined us all
[statistics provided by: Forbes]
To Contra, your logic is flawed. Reducing taxes to get them to stop putting their money in tax havens makes no sense. Currently, they are choosing no taxes over the 35% rate in the US. If we lower it to even 15%, obviously, they will still choose paying no taxes over a little. Our taxes are already one of the lowest in the world. It used to be 85%, then 70% in the early 1900s, and similar rates are encouraged in Europe. Taxes are not what is inhibiting growth of businesses. Business creation is down because of a lack of faith in the economy. Corporations are making more more money than ever! Apple has tens of billions of dollars saved up, and they are certainly not planning on hiring, and no amount of tax reductions or incentives will change that.
A big deal was made about Mitt Romney's alleged tax havens in the Cayman Islands. Tax shelters are for the super-rich who try to avoid paying income taxes rightfully owed to the U.S. government. If the wealthy don't want to pay American income taxes, they should live in another country. Tax havens should be illegal and the tax code should be changed.
If you're going to earn your income through the country of your origin and reap the benefits of national defense, local roads, highways, and government programs you should be contributing to their cost and support. Offshore Tax Havens allows you to have the free services of your government against the need of the masses.
Yes, offshore tax havens should be illegal because they create extremely low tax rates for the wealthy while those of us who make thirty or forty thousand dollars a year must pay our full share. As American citizens, even the wealthy should be obligated to play by the same rules as the rest of us. Offshore havens should not be something that exist for just a select few.
We must be clear that Foreign Offshore Sovereign Company Registries involved with the incorporation of LLC, Trust and Offshore Structures don't allow companies to do business in their countries. All they do is register the companies for overseas individuals who are mostly trying to manage their taxes wisely. The registering state of these bodies only benefits from meager registration and annual renewal fees. The financial transactions through the companies is where the problem lies. In most situations no actual funds reach these countries as the media suggests. If there is a legal way of reducing tax from 50% to 20% and your talking about a Million Dollar Profit would you check options available?
If tax havens are illegal, the source of income is gone, tax havens will become impoverished and need support from wealthy nations/ IMF/ etc. People on the right side of the moral debate are re-ditributing wealth and stating that the market does not do a good job. How good will the re-distribution of wealth based on moral arguments be? And can it justify impoverishing othe nations?
Tax Havens, Secrecy Jurisdictions, Transfer Pricing, Usury, etc. There are so many fun ways for corps/banks to hide money or do things with YOUR money (in the case of banks) in a highly unregulated and risky environment. Many of the top 50 US corps pay 0 (ZERO) taxes. As multinationals they play all sorts of games to move profits overseas and debt over here for deductions. The only reason those companies are as successful as they are is BECAUSE they started in the US. Imagine if GE was started in Cambodia. We give them and educated workforce, infrastructure, and strongest market of consumers the world has ever known. Not to mention they externalize many of their costs to us.
In terms of the gov being incompetent and in the way, that is just conservative bs. Corps rely on the government for the real game-changing research (and they should, because corps would go broke doing all the leg work). Look at Apple - they owe us all for the internet, gps, cellular networks, etc. (the top 10+ technologies they use in their iPhone was developed by that incompetent government that they refuse to pay taxes to). Even the company itself was funded as a startup under a government program.
Back to Tax Shelters - they drain money out of the economy like blood out of your body. They destroy developing countries. There's plenty of factual research that destroys all the ideological sound bites that the pro tax shelter gang spew.
If a person has the opportunity to legally mitigate their tax, then why shouldn't they be allowed. Here, I can speak only for individuals. I am fortunate to have a parent from a country that is a 'tax haven', and I do plan on properly using it's system's lack of transparency to decrease my tax. For major companies, I am unsure as to if it is acceptable, but individuals should be allowed.
The full picture is that corporate tax is 35%. But when the corporation pays money to the shareholders (dividends) tax people show up again and take away another 13%.
So the real tax burden is 48% by the time money comes into a private bank account.
Go ahead and start your own company, work X hours per day X days per week, and then someone shows up and takes away half of everything you worked for. No wonder people are going away. May I remind everyone that the USA started when people revolted against a 5% tax on the tea? Now someone tries to tell you that country can't function unless it takes away 50% ?
If the tax burden was more reasonable then the whole bother around starting all those off-shore companies wouldn't be worth it. As the things stand now - companies and shareholders are getting away from 48% tax burden and as long as it exists people will have a major incentive to avoid it.
Ve put us in this situation. They need to learn to be financial literate and responsible for they're own cause. Perhaps they can learn a thing or two from these corporations that are making billions in assets and not creating debt. I wouldn't trust a single penny to the Government. "Giving money and power to the government is like giving a whiskey and a car keys to a teenage boys" P.J.O. Fact: The Bush era; 9/11 War on terror cost 3.4-4 Trillion dollars and counting(Bless those who have served and died in honor of Oil, power, and territory). He also mention that his so called 'Tax cuts' could help the economic growth which put an increase on our debt by $2 Trillion in a year. On top of that he Borrowed $1.6 trillion or more from China just to cover seniority benefits in medical care, pension, and pharmaceutical. Bad debt investment. That's more than what 42 presidents borrowed combined and liter
Its funny how Maverick32 on the YES side blame and accuse corporations for money that is wasted oversees instead of using to help decrease US debt/GDP. Really dude? Do you even know why? It was our own government that have put us in this situation. They need to learn to be financial literate and responsible for they're own cause. Perhaps they can learn a thing or two from these corporations that are making billions in assets and not creating debt. I wouldn't trust a single penny to the Government. "Giving money and power to the government is like giving a whiskey and a car keys to a teenage boys" P.J.O. Fact: The Bush era; 9/11 War on terror cost 3.4-4 Trillion dollars and counting(Bless those who have served and died in honor of Oil, power, and territory). He also mention that his so called 'Tax cuts' could help the economic growth which put an increase on our debt by $2 Trillion in a year. On top of that he Borrowed $1.6 trillion or more from China just to cover seniority benefits in medical care, pension, and pharmaceutical. Bad debt investment. That's more than what 42 presidents borrowed combined and literally increase the federal budget by a whooping 104% in eight years of his service...WTF!? How are we going to cover? Simple. Printing...printing....printing more money you can ever imagine. Yup, 'Inflation'. Anyways, My point is Tax Haven should NOT be illegal just because we need the corporate money to decrease GDP debt. Honestly, its a good thing the gov't didn't acquire they're money. We be 3x worst in debt today.
If they want their money there, because they don't want to pay high taxes here, why should we stop them. It just shows that we should lower our taxes, which would boost revenues by attracting both more foreign and domestic investment in the USA. It would also grow the economy. Business expansion and investment is good.