Saturday, July 20, 2019
The Republican promise was to cut corporate tax rate and repatriate those dollars, unleashing a flood of new job-creating investment in the process. The orange sloth's claims on tax reform are bogus on many levels. Zero annual tax has accelerated from 30 to sixty top companies. Profits are still claimed in the lowest tax countries, regardless where it is actually earned. This is accomplished with bookkeeping tricks, not actual money transfers. Global tax arbitrage runs in parallel to global labor arbitrage. The orange sloth's left hand is working at cross-purposes with the right.
The Republican tax bill was built on a string of lies. The real U.S. corporate tax rate has never been 35% claimed. The effective rate was around 27.1%. The new rate of 21% offers no incentive against tax havens of 10%. The alleged offices in Cayman, Bermuda, and Ireland ... have never actually been occupied. Corporate money has always been parked in tax havens only on paper, much of it actually is in US Treasuries, securities, stock buybacks and dividends.
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