Quote:
Originally Posted by NewNick
Its very simple. Let me give you an example.
For many years google has sold vast amounts of ads to UK companies. The searches where the ads appeared were UK consumers. UK surfers clicking on ads for UK products delivered to UK households. So a transaction that 100% takes place in the UK. We are talking about billions of dollars of ad sales.
So do you think google paid UK sales taxes on that revenue ?
Do you think google paid UK corporation tax on the profits generated from that revenue ?
Or maybe if google did not pay UK taxes it must have paid US taxes because google is a US company ?
Or do you think that google used a structure of shell companies in low taxation jurisdictions to shield themselves from the taxes that all the rest of us have to pay on our business ventures ?
Do you need me to give you a clue ?, or can you join up the dots for yourself ?
So the Trumpster argument is that they pay the taxes that are due, and yes very clever corporate accountants and lawyers make sure that the structures are legal. But they are only legal because the actual root of the structure, the ultimate tax jurisdiction of the holding company, cannot be determined.
Its a bit like Trumps own tax return - fucking mysterious and yielding fuck all for the Treasury.
And then you end up with mountains of cash in off shore accounts. No shareholder value. No corporate responsibility. No contribution to the society that google depends on for its profits.
Do you understand yet ?
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It is even worse !
MANY big companies donīt own their own trademark.
this is mostly owned by offshore companies.
many international companies are operating in different countries and pay a "licence fee" to the trademark owner.
this fee is HUGE and these are business costs what will be taken off as spendings.
as this is legal the company does not even have to make offshore business.
you just open a company in the US and give the trademark to a company in Panama or
Virgin Islands. Than you can decide to pay zero tax or to pay 1% tax and get confirmation that the winnings have been properly taxed.
the next funny thing is that the companies can buy their own shares back with the tax cut they received and still have the money in their hand.
example: get 1 billion tax cutt
buy back shares for 1 billion
the money for the baught shares is right back in the company.
now imagine that:
private shareholders investing money on risk. if the company they bought the share is going to be bankrupt they are losing.
now the US government gave this companies a big tax cut what makes them able to buy this shares back and STILL have this money after they bought them back (because the invested money will go directly into the company as capital).
all what was before at least a bit in hands of the society (at least them who owns shares) is now 100% in the companies hand - financed by the own government.
more money and value is going to be in very few hands.
and THIS is the biggest problem of US since centuries.
when it comes to prosperity it is not a question of GDP of a country. it is a question of how the money is distributed across the population.
this is measured with the so called gini index that shows you that the income equality in USA is on a par with that of russia.
