Corporations may dodge billions in U.S. taxes through new loophole: experts

Corporations may dodge billions in U.S. taxes through new loophole: experts

So corporations are going to dodge paying taxes on offshore money by now paying a lesser amount, instead of the higher amount that they never intended on paying. Give me a fuckin break

Someone tell me how much 35% of $0 is cause that's what Apple was paying prior to the tax cut. The entire purpose of this particular cut was to incentivize companies like Apple to repatriate more money.

If you read the whole article it says for example that Apple could save $4 billion by reducing its overseas cash holdings by 55 billion by distributing it through dividends... And their cash holdings are like 250 billion plus...

So, Apple could theoretically save like 1.6% of its overseas cash holdings by giving 55 billion to its shareholders...

Distributing 55 billion through dividends to apple shareholders would be awesome for a lot of people.

But I'm not sure why spending 55 billion to save 4 billion is a big deal.

So you mean the tax bill that literally said it was going to cut taxes for corporations, actually made it so corporations would get huge tax breaks.

Well color me fucking shocked!

It's not a "loophole". It was deliberately written that way so Congress could claim they were doing one thing while all the time bowing to their corporate masters. When they were told up front that it would lead to this exact situation, they loudly declared that it wouldn't, and now they're acting all surprised that the law is benefiting corporations exactly the way was intended to.

Exactly. Calling it a loophole is a straight up lie. This was an intentional and major part of the bill to get companies to repatriate overseas money. It will now get taxed at 8%-15%, whereas before the companies wouldn't have gotten taxed on it at all. 8% of $2.6 trillion is $200 billion in extra tax revenue these companies now have to pay.

The company has a tax rate of 21%, if they decide to hold money offshore, that money is now taxed at rates or either 15% or 8%. The US had a really high corporate tax rate which was the reason these companies were socking away money overseas to begin with.

Now they have a lower tax rate to incentivize companies not to do that, and if they do it they will be taxed.

Reddit is not exactly full of economists. Or people who even can afford Apple products. Apple was notoriously holding huge cash reserves overseas with no plans of repatriation without a tax incentive.

Republicans know this, but they can't ever get these loopholes closed

And your entire post is revealed as the misleading bullshit it is with this one statement.

If they know these "facts," and they control all of the House, Senate, and Presidency... why can't they close the loopholes? They have the legistlative power to do it. They have the executive power to do it. The Democrats can't posture against it because it would look bad for their "pretending." So why don't Republicans close the loopholes?

I'll give you a hint: They don't want to.

There are large costs for getting advice on tax strategy. The wealthy and large corps can afford it mom&pops cannot. Your tax burden shouldn't be decided by how many lawyers you can afford.

People might not be able to afford Apple products...but they bought them anyway, even if it means going in debt, just to fit in with the trendy crowd

Distributing 55 billion through dividends to apple shareholders would be awesome for a lot of people.

Including congressmen who hold it.

Its also not awesome for the majority of people who dont hold Apple stock. Tax revenue that funds infrastructure and services that benefit everyone is is being redirected to stock holders, both in inflating it and direct payments to the holders.

So in order to save $4 billion they would have to pay out $55 billion? Where's my pitchfork!/s

Please help me understand what you mean by "class warfare"

The word "loophole" is constantly and deliberately misused by class warfare rabble rousers in the media.

Good news for loopholes and dodgers of taxes! Go team!