Drudge Retort: The Other Side of the News
Saturday, December 16, 2017

Anne Zimmerman: As the Republican tax plan continues to advance -- and morph -- with dizzying speed, those of us in the accounting business continue to be astonished by the thickening maze of loopholes emerging from the bill. As a CPA, I could be celebrating these loopholes. After all, I would be able to save my clients a lot on taxes and could be invited to fly along to, say, the Cayman Islands to set up an offshore account under the new regulations. Four days at the beach with a fully-stocked hotel minibar and all the HBO and Showtime programs I can watch -- all fully deductible for me and my client. Sounds nice, right? Wrong. As someone who has served small businesses for more than 30 years, and co-chair of an organization called Businesses for Responsible Tax Reform, I am not cheering. Small business owners aren't cheering the bill either.

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Quite the opposite. This bill, despite the glossy, small business-friendly language being used to sell it, would actually do more to widen the tax advantage gap between large businesses and small ones than our present -- and already tilted tax code -- does. This bill does just that, thanks to the change from a worldwide tax system, which requires US companies to pay Uncle Sam taxes on all their profits, regardless of where the income is earned, to something called a territorial one, under which companies don't owe taxes to their own governments on income they make offshore.

This change, if enacted, would encourage wealthy businesses to learn how to go offshore to gain a more favorable tax rate than is available within our borders -- giving them a significant financial and competitive advantage over our neighborhood mom and pops trying to stay afloat onshore.

Businesses would be allowed to shift profits offshore to avoid American tax rates. Essentially that means we would be creating a tremendous incentive to reassign or push profits offshore; businesses with the financial wherewithal and accounting savvy to take advantage of it could create perfectly legal tax shelters. While this kind of tax sheltering, to date, has been the gambit of large corporations, I'm already seeing a lot of business owners, including wealthy pass-through businesses, asking about setting up businesses offshore to take advantage of a lower tax rate. Who am I not seeing ask about this? My neighborhood day care provider, brew pub owner and dry cleaner -- the small businesses that bring vitality to our communities and ground all our lives.

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I stand with the American people!

- Don the Con.

#1 | Posted by 726 at 2017-12-15 02:16 PM | Reply

Awe ------
Just tell them it's just like a fast pass at Disney

Sincerely
The Small Business Constitutionalists

#2 | Posted by ChiefTutMoses at 2017-12-15 02:46 PM | Reply

Posted by 726

We didn't know what the plan looked like until this afternoon. Is the sky falling again?

#3 | Posted by Sniper at 2017-12-15 06:21 PM | Reply | Funny: 1


@#3 ... We didn't know what the plan looked like until this afternoon. ...

We had a pretty good idea of the basic tax plan, just some details around the edges were changing.

For example, we knew that the Senate rules require the tax plan to be deficit-neutral after 10 years. So we knew there had to be some means within the tax bill to pay for those permanent corporate and wealthy tax cuts.

It was, and still is, the expiration of the tax cuts for the lower and middle class in ten years, at which point the lower and middle class will be making up for the significant loss of revenue caused by the permanent tax cuts for the corporations and wealthy.

That aspect was pretty basic and it hasn't changed over the past few weeks.

Indeed, the lower and middle class transferring their money to the wealthy and corporations still exists in the "final" bill released yesterday.

#4 | Posted by LampLighter at 2017-12-16 11:44 AM | Reply

I can't disagree with the author but I hoped she would address specific provisions in the bill that harmed small business.

Not just the inability to offshore profits. Which, BTW, has been a problem already existing for many years.

#5 | Posted by eberly at 2017-12-16 12:05 PM | Reply

"I hoped she would address specific provisions in the bill that harmed small business."

She didn't, because this is Fake News.
Trump Tax Plan = Best Tax Plan.
:)

#6 | Posted by snoofy at 2017-12-16 01:39 PM | Reply

Trump Tax Plan = Best Tax Plan.
:)

#6 | POSTED BY SNOOFY

Small Businesses can stand out in the Tinkle Down with the rest of us.

But, no worries Snoofy.

At least we know (because Trump told us over and over and over) that Trump does not benefit, does NOT benefit, (believe me!) from the "biggest tax cut in American history"!

No collusion!

Build the Wall!

#7 | Posted by donnerboy at 2017-12-16 01:54 PM | Reply

#7

You forgot to say #MAGA!

#8 | Posted by Whatsleft at 2017-12-16 09:01 PM | Reply

Not just the inability to offshore profits. Which, BTW, has been a problem already existing for many years.

#5 | Posted by eberly

Specifics would not fit their narrative. You know you can't get any facts from this bunch of libs.

#9 | Posted by Sniper at 2017-12-17 04:36 PM | Reply | Funny: 1

#9 says the ardent climate change denier LOL

#10 | Posted by jpw at 2017-12-17 05:37 PM | Reply

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You know you can't get any facts

We just don't want to see you go into anaphylaxis due to your fact allergy snoops.

We care!

#11 | Posted by 726 at 2017-12-18 07:38 AM | Reply

Obviously they should have been born rich. Not our problem.
-GOP

#12 | Posted by Sycophant at 2017-12-18 11:53 AM | Reply

Specifics would not fit their narrative. You know you can't get any facts from this bunch of libs.

#9 | POSTED BY SNIPER

The irony here....

#13 | Posted by Sycophant at 2017-12-18 11:53 AM | Reply

Yeah, this bill definitely is against the small business owners. It sucks that so many dummies are saying how much the bill favors the rich when it doesn't and actually, in the end, not much changes and it all balances out. Except for small business owners. There is no doubt that the bill really needs to be improved for them. I know that the GOP tends to look the other way when it comes to them but this one could cause some irreversible damage in the long run. It won't ruin us but it will start to create an environment where the only small businesses people can afford are online only. Brick and mortar are going to belong to the big chains.

#14 | Posted by humtake at 2017-12-18 11:56 AM | Reply

So this bill actually encourages offshoring of jobs and profits? Weren't we told that it would encourage businesses to bring profits and jobs back to the country? Seems like it's just the opposite. How does this bill, loaded with tax benefits for the rich and the filthy rich at the expense of the middle class and poor, and reading like it was written by BLOTUS' personal accountant (massive benefits for airplane owners, golf course owners and real estate moguls, Jesus is there a box for Drumpf they didn't check?) #MAGA exactly?

#15 | Posted by _Gunslinger_ at 2017-12-18 12:51 PM | Reply

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