NorthDakota
Grandson of Loomis
- Messages
- 15,705
- Reaction score
- 6,006
Historical Amount of Revenue by Source
So your position is government should punish business any time they "piss you off" and companies only make money in the US. The 50%+ of S&P 500 earnings earned overseas are all smoke and mirrors?? Can't help you there.
Try this exercise - you can build a house in Ohio or Costa Rica. To move money to Costa Rica in order to build the house they will charge you a 20% tax. If you can build the house for $100,000 in Ohio, you would need to build the same house for $80,000 in Costa Rica in order to make any sense to choose that location. Given cheaper labor and looser building codes maybe that makes sense.
Now flip that to a US company - you want to build a $1 million factory. You have $1 million in Ireland. Ireland will let you ship the money anywhere as you have already paid tax on it and they respect your property rights. The only place you need to be penalized is the US where you foolishly set up your home office operations generations ago. To build in the US you must repatriate that money and pay around $200,000 in tax. As such, you need to borrow $200,000 to build the factory in the US while being able to pay outright elsewhere. And profits from that factory will be taxed at 18% in Ireland or 35% (plus state) in the US.
You do not see how this hurts US job growth and the American middle class? How income taxes and FICA collected might way more than make up for a nominal drop in corporate collections?
Thank you. +1