recently we found some good information coming in advance of the release
up rock Obama's next budget which should be released on March 4 that we believe
and so we found out that it's likely that what we had feared would be
the grand bargain will not be included although we'll have some debate about
that
but more good news though it looks like Obama will once again hopefully try to
clamp down on some love the tax evasion
a comes in the form of corporate offshore profits being hidden from US
taxation
now this comes up this topic comes up from time to time and we don't know that
actually be able to do it he has tried in the past early said that he's trying
but it looks like they're going to once again attempt to clamp down on that
now if you don't understand this so basically there is a fairly high tech 3
of popular
up 35 percent went up for a foreign profits are brought back to the US which
is why they don't bring it back to the US to hide it
in foreign accounts and the chairman of the White House Council of Economic
Advisers said that some US businesses move profits in the low-tax
jurisdictions
for reasons that have no economic benefit other than to avoid taxes which
should be clear
and such profit shifting is extensive we're talking about a massive amount of
money being
in from lawful legal US taxation
and course a monster that would be if the that is he says there's no economic
benefit to avoid taxes
which is an economic wealth which is very high said that's exactly what
they're going to get a good bet the great economic better happier place 2
percent
tak corporate taxes by filing
can registering themselves as a corporation in Ireland is fairly I said
at a pretty substantial economic plan yeah right so I was who is referring to
is you not really doing business in Bermuda
we know that right and so when I can let you get away with it anymore
I would love to see the implementation of this that would be amazing and
antlerless
you know just to clarify one thing 35 percent you have a car
precision metal that's too high to low et cetera now the loopholes are so
extensive
obviously this being a major one that the effective tax rate for corporations
is at a record low okay and by the way internationally
were lower than other people so much lower in some get some particular cases
negative
yes when you take into account subsidies and things like that they actually get
more money back
right so when they say all another what was that song is rate
know but what do you actually pay and don't get him wrong
their corporations their whole point is the make every single center they can
so if taxes were incredibly low they were five percent
and by hiding the money in Bermuda they could lower 22 percent
they what right because that would be three percent that they were put in
their pocket and that would be their economic benefit
so the trick is that pass laws to make sure
they can't cheat on those taxes because given the opportunity
of course they were it's not necessarily the case that Obama's gonna be able to
force them to bring the money back the only way that we can really do that or
that we hear about doing this is the republican proposals counseling to give
tax holidays and things like that
but they do say that the possible the president's proposal in that regard
to get some taxes on the money being held abroad would be to an international
minimum tax
which seems like that's a pretty tough row to hoe how do you get all countries
that have signed on to that a relief that the countries where people are
having significant another about the money
there's also some positive information in this report I mean yeah I i'm
I mean I think you do it by you know governing
you know you do it by say all right we have you guys are gonna do this or
your company's k do business here and we're not get your money is no good in
our market to be there
there I mean I'm I'm sure it will be at this brother Shipley but there are ways
to get countries to comply my taking it very difficult on those countries the
dog
and other good news the europeans already working on this they're also
annoyed by the
tax avoidance that these corporations are doing their exhorting american taxes
they're avoiding taxes all over the world
I'm and so they're putting pressure on
not just for me to but also Ireland in and
the Netherlands so that's where you get the Dutch sandwich in the double Irish
these the remains of their country's their shopping around to court
themselves around corporations offering the lowest tax rate because a ten per
centum Apple's income in Ireland
considering the Apple is in doesn't exist in Ireland
that's a big windfall for them so what they're trying to avoid we would drink
is talking about this kinda lowest bidder
attitude towards public taxation but you'll be careful what Obama proposes
because he keeps going back to phrases like out whenever we propose will be
revenue-neutral normal can be revenue-neutral
in actual terms you're paying lowest amount has a corporation
than you paid nearly 60 years we don't want a lot they had in here we want to
bring that back up because you corporations at the same time a record
highs
so anytime someone says let's walk into because revenue neutral but makes more
sense
said no no we don't want to add a new trend it why I thought the whole point
was to reduce the deficit
right i mean in in the beginning article talks about like in deficit reduction in
center
but his revenue-neutral you're not and so how would it be revenue-neutral if
you're
make sure they pay the tax they're not paying a you lower their rates
yes oh wait a minute we have no we'll book the corporate tax rate
where the corporations don't have enough a break in this country
and what it does is it gets the corporations to be able to have sound
bites like
all Volvo skill nazis good although
I've got money offshore because I'm doing business of shortage trying to
prevent that
but in reality what Obama is doing is he did by the way with the Bush tax cuts
he locked in ninety-four percent of the gains love those tax cuts
for though a wealthy and made them per minute
now yes he did raise taxes the rig was a problem 6 percent
all those gains rate but ninety-four percent got lucky and permit which even
bush couldn't do
hoops this time it looks like he's try to lock in if it's really
revenue-neutral
a hundred percent to it right but that's the issue is that is that
is the revenue neutral talk for that like is that
because it you know look I i'm so far out my love it here but if you're movin
almost Apple to apples evolve your boy debate 35 percent because you can build
Ireland
at bay 2 percent pretend that you're and then
he lock something in where they end up paying a lower rate than 35 percent
but it's about to that's not revenue neutral I mean
that were then you get into the whole issue of the other taxes they're paying
and other areas
you get into a lot of proposals that the administration will throw out and
Republicans will be even more extreme about this as you might expect
but to say well we'll have a repatriation holiday where you don't
have to pay any penalty for avoiding merry
your age forget all that make them pay their part you
enforce the laws we have as well as passing new one make them pay
they're prepared totally the question is is that the is the phrase
revenue-neutral in there
for the puppet like added then it doesn't really happen
that the yeah why I really in if past negotiations are guide
it's not in their further ok its present to our means it here
me it is in a sense is the coax them right but then he'll deliver another he
hasn't yet another right at that the word is in there that the
the policy is in there right and yeah I I love the idea of like
well you know you guys have been breaking the law if not the letter
politely Suspiria lawyerly revenue-neutral be like if you found out
that somebody was
was robbing your house roommate is robbing your house they went up the
robbery and understanding
pay you extra hundred dollars a week your fucking drop me okay
yeah I don't know exactly what right what are the penalties we can let me on
them but
and I really like that silverware yet which gasket baltimore's
a great line within their butts get it done at kidder
up lovely why you make me blow this up just give me the money
I will blow your trip I get paid enough to blow your trade-in you go
you take about your money and you give someone to be with nobody is that really
should anybody in style
yeah I love this analogy I had got over that way but it's the idea that a bear
a bank robber anyone gets caught in aces woohoo it's wanna make sure
is gonna be revenue-neutral I got you know I can use all the money back with
you to your back to me right
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