I watched the briefing twice to confirm, because I couldn't believe it the first time I heard it.
Mnuchin: "Territorial tax means that US companies will pay income related to the US. US companies will not be subject to worldwide income that makes them uncompetitive"
youtube.com
en.wikipedia.org
This is bigger news than the 15% corporate tax rate.
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no fucking way
Someone explain in simple terms why this is good.
Hypothetically , if I were an idiot and didn't understand this, how would you help me understand?
If I am not mistaken, it means they can move their cash back here and not be penalized, feel free to correct me if I am wrong.
Say you have a US company. It sells a widget to a guy in Australia. You pay 0% tax on the profit. This is why HK is so popular as an incorporation spot.
Image you have an internet-based SAAS company. You can now sell to clients in 180 countries at 0% tax.
I'm no economist but from the looks of it, it will entice businesses from all over the world to move to the US while allowing them to keep production inside and outside the US at no major loss.
Awesome!
This means more American companies will set up a letterbox office here in the Netherlands.
Thanks for all the free money, America, you're awesome.
Wew
>trusting company kikes to change their ways
this is the only flaw with the tax plan