Obama Lays-Out $1.5T in New Taxes

[mrplunkey]

LOl... and lol@ the rest of these people who do not know what this dude is really doing. It is called a Undistributed Profit Tax, that is the correct economic rhetoric..

I wonder who influenced him?? The Revenue Act of 1936.

The correct answer is to keep the unpaid dividends in their respective non-US entities until Barry and his kind goes away.

Need the cash? No problem. Just borrow in the US at historically low rates against your holdings outside the US. There are some miscues you can make that will link the holdings (and make them subject to taxes), but those can be mitigated as well.

Good times!

 

[ledhead]

The correct answer is to keep the unpaid dividends in their respective non-US entities until Barry and his kind goes away.

Need the cash? No problem. Just borrow in the US at historically low rates against your holdings outside the US. There are some miscues you can make that will link the holdings (and make them subject to taxes), but those can be mitigated as well.

Good times!

Exactly... I will expound later tonight.

I'm out! Later on...

 

[canadianhitman]

The correct answer is to keep the unpaid dividends in their respective non-US entities until Barry and his kind goes away.

Need the cash? No problem. Just borrow in the US at historically low rates against your holdings outside the US. There are some miscues you can make that will link the holdings (and make them subject to taxes), but those can be mitigated as well.

Good times!

There IS intelligent life on EF after all!

 

[mrplunkey]

There IS intelligent life on EF after all!

I find it comforting that barry's politicalization of monetary policies is insuring outstanding access to cheap credit exclusively to people who don't need it. Then he beats the class warfare/higher taxes drum, inspiring those same people to leave funds unrepatriated and use the cheap US credit instead.

What would be even cooler is for Buffet and Immelt/GE to setup a financing company dedicated to making those specific types of loans. That would have me laughing ass off. And in an even funnier scenario, the company should get US stimulus grants for its startup capital and book its gains in Ireland to avoid US taxes. Warren and Jeff would be my heroes 100x over if they could pull that off.

 

[redsamurai]

You fell for the talking point. No one is advocating the rich pay less taxes. They already pay the most at the highest rate.

This talking point is a trick to force people who receive money that had already been taxed to be taxed again at 25% instead of 15%, when the right answer should be zero.

in principle i actually agree with you but i'm not buying that these people we're talking about really do pay their share, forget about their investments. I agree double taxation is bullshit...i really do. But the last couple years we've been regaled (sp?) with story after story of these swindlers..especially on wall street...are making off with 10's of millions by gaming the system. The SEC simply cannot keep up with these guys and how they hide/shuffle their money. Liek i said earlier i'd rather they just round these guys up instead of making the tax system even more bloated and complicated than it already is. Fuck i just read that Canada is telling the IRS to back the fuck off from coming after dual citizens in Canada who haven't even worked in teh U.S in decades. It's getting absurd. I'd rather Obama just dictator up and send out the school bus's to pick some of these swine up but...ah well.

 

[kx250rider]

California taxes your state income tax refund as income.

OH YES... And that's not the only little scam CA has going. They tax you on income that you never made in CA, and income that has NOTHING TO DO with CA. Sometimes you can get it back, but you have to pay an estimate up front. Now think for a second: How much does it cost to go get a quick personal loan from a pawn shop or a bank? 18%, 30%,??? Well, CA extorts loans from just about everybody in the country who has any business at all in CA; even if it's only a vacation home, or a small business, or whatever. You have to go ahead and file a CA return, and pay an estimate. Look at this pic, and see the date of the check they finally wrote, and the tax year it's to refund for. I'm not saying what the actual original estimate paid on April 15, 2007, but it was a LOT, and it was based on gross 2006 income from a small business IN TEXAS and BEFORE expenses. CA got to "borrow" that amount, and keep it for well over a year, and they only had to pay 3% interest. To me, that represents an additional unspoken TAX for about $100,000.00!!!!!!!!!!! And they wonder why Amazon left CA suddenly, and why the CA business climate is so rotten? Somebody is retarded in Sacramento. I'll consider us lucky that it didn't BOUNCE, knowing the financial situation in CA.



Charles

 

[Mr. dB]

logic

You shouldn't use words you can't comprehend.

 

[mrplunkey]

in principle i actually agree with you but i'm not buying that these people we're talking about really do pay their share, forget about their investments. I agree double taxation is bullshit...i really do. But the last couple years we've been regaled (sp?) with story after story of these swindlers..especially on wall street...are making off with 10's of millions by gaming the system. The SEC simply cannot keep up with these guys and how they hide/shuffle their money. Liek i said earlier i'd rather they just round these guys up instead of making the tax system even more bloated and complicated than it already is. Fuck i just read that Canada is telling the IRS to back the fuck off from coming after dual citizens in Canada who haven't even worked in teh U.S in decades. It's getting absurd. I'd rather Obama just dictator up and send out the school bus's to pick some of these swine up but...ah well.

1) Don't fault businesspeople for taking advantage of loopholes created by corrupt politicians. If you want less corruption, then make government smaller.

2) The world's best (arguably) tax evader is GE. Thanks to lobbyists and enviro-whacko's, they actually payed a negative tax rate. I was laughing my ass off.

3) And what happens when GE does game the system better than anyone else? The president invites its CEO to sit with his family during his Joint Session of Congress while he preaches-on about "investments" in our economy, knowing full well he's going to go on a tax offensive a week later. How dumb can Americans possibly be to fall for that?

 

[digimon7068]

1) Don't fault businesspeople for taking advantage of loopholes created by corrupt politicians. If you want less corruption, then make government smaller.

2) The world's best (arguably) tax evader is GE. Thanks to lobbyists and enviro-whacko's, they actually payed a negative tax rate. I was laughing my ass off.

3) And what happens when GE does game the system better than anyone else? The president invites its CEO to sit with his family during his Joint Session of Congress while he preaches-on about "investments" in our economy, knowing full well he's going to go on a tax offensive a week later. How dumb can Americans possibly be to fall for that?

i don't know the exact facts and circumstances of general electric's tax returns but, generally speaking, businesses large and small get big tax breaks for (among other things) spending large sums of money on research and development of products, processes, etc. that are aimed at making our lives easier, safer, cleaner, more energy efficient, etc...thus, relieving the government of a significant amount of responsibility...and the tax breaks are their reward for committing the time, money and effort required to accomplish those tasks...generally, the goverment only gives these kinds of tax breaks where they see that there is a need or where an initiative has been established (e.g., energy efficiency, carbon reduction, energy independence, etc.)...if we eliminate those tax breaks then it will wind up being the government's responsibility to do all the research and development, and that would catastrophic.

 

[mrplunkey]

i don't know the exact facts and circumstances of general electric's tax returns but, generally speaking, businesses large and small get big tax breaks for (among other things) spending large sums of money on research and development of products, processes, etc. that are aimed at making our lives easier, safer, cleaner, more energy efficient, etc...thus, relieving the government of a significant amount of responsibility...and the tax breaks are their reward for committing the time, money and effort required to accomplish those tasks...generally, the goverment only gives these kinds of tax breaks where they see that there is a need or where an initiative has been established (e.g., energy efficiency, carbon reduction, energy independence, etc.)...if we eliminate those tax breaks then it will wind up being the government's responsibility to do all the research and development, and that would catastrophic.

At GE (former GE'er here), we would have breakthroughs in our "tax technology", particularly during slow quarters. Here were the basic principles:

1) Use the latest-and-greatest global accounting techniques. Recognize income in the most favorable countries possible (since we had a presence everywhere, it wasn't difficult).

2) Take as many tax credits as possible. Usually these were niche benefits, ranging anywhere from environmental remediation (enviro-whacko credits),to "cleaner" jet engines to historical preservation credits.

3) Lobby for as many specific benefits as possible. The legislative magic was by far the least understood by me. I believe they just attached very specific riders to existing bills which in some cases, weren't related to the bill at all. I honestly don't know much about these.

4) Subsidies! The GE Power guys were jedi masters at this one. We (Medical Systems) got some for electronic health records, but GE Wind showed us how it's done in the big leagues.

5) Depreciation and amortization technology. We'd buy ~140 companies a year, and the accounting for those deals was pure black magic.

I was long gone before this last recession hit, but I believe the GE Capital guys got some massive bailout money too. GE is less reliant on Capital's performance than it used to be, but back in the day (~2000), GE Capital ruled the company.