Draggingtree Posted July 27, 2014 Share Posted July 27, 2014 RedState: Obama’s “Inversion” Crusade Is Really Just Another Attack On BusinessesBy: alanjoelny (Diary) | July 26th, 2014 at 09:50 AM Obama has called “for an end to a corporate loophole that allows companies to avoid federal taxes by shifting their tax domiciles overseas in deals known as “inversions.” Such as statement shows the utter ineptitude that Obama has for understanding a) what inversion actually is and how his policies are the cause. Inversion is not a “corporate loophole” and companies who do so are not “avoiding federal taxes”. Currently, only the United States taxes American companies on foreign profits as well as domestic. No other major country does this. This policy is non-competitive, stupid, and a major reason why inversion occurs. An American company is being taxed in two jurisdictions. For instance, if Honda is making cars in the United States, it pays the same taxes as General Motors. But if an American company is in Japan, it has to pay both Japanese taxes and American taxes and therefore has to make an even larger profit just to stay competitive and survive. Link to comment Share on other sites More sharing options...
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