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
>buying anything made in america
lul. jk we actually buy a lot of motors and manufactured parts from america, this btfo's china pretty hard because they will have to lower prices to compete.
You can't trust Jews, other than they will do whatever it takes to save a buck.
Da fuq didn't I invest in Caterpillar and Ingersol-Rand earlier?
More importantly, if you make $0 profit in America, but huge profits abroad you end up paying 0% tax.
So all you have to do is transfer all your expenses to your American balance sheet, assuming they are big enough to cover your US revenue.
ie:
- You buy 1 million widgets in China at $10 per widget. ($10M cost).
- You sell 100.000 widgets in America for $100 per widget. ($10M US revenue).
- You sell 900.000 widgets in the rest of the world for $100 per widget ($90M non-US revenue).
You book all expenses on the US balance sheet - US profits are now $0
You book no expenses on the non-US balance sheet - non-US profits are now $90M
You pay $0 US taxes and $0 non-US taxes - $0 tax in total.
Taxes are so much more important that building the boarder wall and immigration.
both returning 20-30% since Trump's election. that is pretty nice.
WINNING
You're welcome toothpaste
I think you are mistaken.
Why would they set up an office in NL? That's what this tax reform will end.
US companies won't have to incorporate overseas anymore to save on taxes. They'll have 0% by incorporating in the US. No more playing hide the salami double dutch Irish sandwich.
Sorry NL.
Any politician can lower taxes.
The immigration problems need to be stopped too.
he did tweet that the wall is still going which is great. That's the thing I've been waiting to see
oh no im fucked
Yeah, this kills the double irish double dutch my friend.
Well fuck this then
This plays into them very nicely.
Repatriate your offshore shekels for just 10%. Trillions of dollars of cash money liquidity comes into the country for new development and bizdev.
Bring your company here instead of HK/SG. Even if you produce nothing here and sell nothing here, your foots in the door.
If you want to start doing crazy financial wrangling, what's better for us? Do it in Hong Kong and never plan to expand to the American market? Or do it here and once you're ready for our sweet Amera-bux we buy.
Well the EU is basically fucked.
Who votes we import all the good Europeans (i.e. not muslim) and make a huge white ethnostate?
Only way to salvage it for you guys would be to offer something better. Biggest deal would be superb privacy laws.
I know it's a long shot since you're EU, but if you could do something like Panama used to, or Nevis does now, there's a market for a stable friendly country to offer corporate privacy at low tax rates.
Just do it already
>Biggest deal would be superb privacy laws.
Never going to happen.
We have the worst privacy of the entire world.
Even the North Koreans spy less on their own citizens.
Too bad. I really liked visiting your country, but I got the feeling your govt is all about data and keeping stats on everything, can't see them flipping that on corporate owners unless you left the EU. Even then, the world leaned on Switzerland hard with UBS.
Have a stroopwaffle for me tonight.
Just for corporate taxes though, right? US citizens will still have their global income taxed, regardless of where it is made. (Most countries only tax income earned in that country)
+1
That seems to be the case, but it's not entirely clear yet.
fucking hell...watching the livestream...... just watch the Dems try to torpedo this
if you make less than $24k you pay zero income tax as an individual
Without the wall and an end to immigration, both legal and illegal, no president who supports lower taxes will ever be elected again
As far I know from following Trumps tax plans from the primaries he is not addressing that.
It's a crap system, but affects a small amount of people, and isn't a big political win to get rid of. It's much better on the tv to have a package of sweeping corporate tax reform and sell the idea of economic prosperity.
It could get added later though. Not aware of anyone who would oppose it if they are agreeing in principle to the tax cuts on the table.
By my calculations we are winning bigly in trade.
holy fuck yes
I feel sorry for those losers who are exempt from income tax. Still gotta pay (regressive) sales tax
The problem becomes reporting. It is an onerous system for expats to deal with, and after a certain amount of exclusion, you are liable for taxes to a country you don't live in.
Most people affected by this are either making much more than $24K via businessor are living aboard with a spouse in a different country, and not getting any benfits of their taxation, as they are often paying tax in the country they reside.
Please pull through, Donald.
I have heard this 0$ shit before.
I have to have a CC, right?
CC?
That is YUGE.
Why isn't the media all over it?
isn't this essentially what google does in Ireland and Netherlands?
Credit Card
What happened? I thought Mnuchin is bad guy.
B-b-but nu-Sup Forums told me that Drumpf is an incompetent kike shill :(((
If you're a US citizen living abroad you'll only pay federal taxes if you make more than 100k
Otherwise the tax rate is 0%. Only the US and Philippines tax citizens on foreign-sourced income when they live abroad.
If Trump changes that a lot more Americans might move out because they can live in a shithole and keep 100% of their money.
Not sure I follow. A credit card doesn't affect this. This is for corporations based in the US paying tax, not purchasing things from the US.
they probably haven't been fed their official editorial position to spin yet
Bull shit I pay 31% tax on a 23k a year job
How? All I think is Self employment + a state tax + federal? Do you have an accountant?
this is the proposed change, not yet law pham
How about you use your might and free Europe from all non Europeans instead, huge white empire all across the West with all our ancient culture and natural beauty intact? You can even fly the damn flag over us, I just want Europe to be free and white again.
>rich cunts are now able to become even richer cunts and can outperform small business easier
T-thanks
A fucking toothpaste!
I'm completely clueless with this stuff, but couldn't you sell 0 widgets in America and then declare a $10M US loss? or how would that work?
>Rich cunt president shilling for rich cunts
Wew lads
Hi Tarl
You have to become a state though. That's the deal.
There's a proposal to use frozen drug assets to pay for the wall.
Reminder that the Mexican government is in bed with the cartel.
I'm essence Mexico would be paying for it.
If the US does accept a 0% tax on foreign income for corporations it'll allow Apple et al to bring their shekels back stateside, correct?
Dow Jones is projected to hit 30k in 5 years. With that kind of growth we'll hit such low unemployment that we'll start needing LEGAL Mexican immigrants.
As a first world citizen, you're literally a rich cunt. Have perspective.
Now abolish all forms of Tax
>Kill every single illegal mexican and drug trader
>save 1kadrillion dollars not housing mexicans in our prisons
Mexico will indeed pay for the wall.
In fucking blood.
exactly, they currently are building one of the largest HQ's in the US. With this they can move more activites back home. Like putting together Iphones (not the actuall halfproducts).
As a first world citizen, I was speaking from the perspective of a first worlder. If you want to be a globalist, fuck off back to Plebbit.
Kind of. It stops punishing American companies for doing well globally. In essence it supports exportation of good while the other policies encourage foreign companies to set up shop here.
>be Alibaba
>move hq to America
>get lower tax rate on the income you generate in America
>pay nothing on services rendered abroad
>experience huge growth
>hire more employees in America to facilitate this
>/csg/ explodes
Taxation is Still theft, but I'll allow it so long as the roads are not forgotten.
I was hoping this would be the case. Good move on Trump's part.
>t. molyneux
I'd define that as nationalist pride as a citizen of the richest nation on earth that's about to hit record highs in the market. If cunts richer than me have no money, the company I work for can't get a loan to maintain growth and I have no job. Let the cunts get richer and give me my pay raise.
>muh trickle down
not only google.
Muh socialism
[Derogatory stereotypical abo name], we are the richest nation on the planet for a reason. Where do you think your boss gets the money to pay you on a slow week? You think businesses all run in the black year round? Investment and loans that keep these companies afloat are funded by muh rich cunts looking for another 1% roi. It's all connected.
I already have friends telling me this is the nightmare scenario.
Of course, these people don't care for Trump.
They can only focus on how businesses are no longer being taxed.
Nevermind that most big businesses DON'T PAY ANY TAX.
>and give me my pay raise
*boker face*
:DDD
You hopefully realise this does literally nothing for the U.S. outside of the companies themselves? In fact it incentives companies to bring even more business outside, meaning creating jobs and investing money in other countries rather than in the U.S.
Its a 100% kikeshill sellout move that fucks over the regular amercians in favour of companies. Nu-pol here is just salivating about it because they have literally no concept of how economy works and desperatly look in everything Trump does as some salvation strike.
I've gotten at least a 10k a year increase every year for the past 3 years under the slow growth of Obama. If the market goes to the moon like they're expecting I'm gonna be feeling right.
Breddy sure that any saleable item that sells well in the rest of the world will also sell well in the US.
If they were to deny themselves access to the US market, they'd be cutting themselves off from one of the largest markets in the world - depending on the item.
But you still hire people in the US as well to run things since the company is based here, and while profits are still taxed in the US, its 15%, so you'll still sell the product in the US just fine
>But you still hire people in the US as well to run things since the company is based here
No they hire people abroad in offices there because thats more profitable for administrative purposes.
It's always funny hearing this from people that have a shit understanding of math. It's simple.
15% of 10 million is bigger than 30% of 4 million.
Wont happen, EU has too many cucks
Better that the Euro right wingers move here, just never vote democrat for the love of god, may as well stay in Europe if you'd vote democrat here.
Wrong. It encourages companies to come and manufacture here but sell their shit to other people. Reminder that companies are made of people that work there.
Cutting taxes is great and all, but isn't that just going to widen budget deficits?
Where are they gonna get the money to make up for all these tax cuts?
>It encourages companies to come and manufacture here
No it doesn't, nothing about this encourages that because they don't make any profit from manufecturing in the U.S. compared to abroad. But they DO benefit from having as much of their revenue as possible abroad which incentives producing there due to better prfoit margins. This isn't even economics, its basic logic.
By collected in YOU.
Pay debnts
nice try fag. This will create massive amounts of capital here for companies to borrow, ensuring low interest rates. Like a giant tax haven. Learn economics
I want my country to do cool economic stuff too (((
>vk
what a coincedence
Chinese corporate tax rate is 25% friend. It would directly undercut them AND remove any tax on foreign sales. It would be worth it. Not to mention simple logistics offices being placed here.
I'm on a drug called Donald Trump
This is the biggest thing to happen in america in decades. Of course germany eu is against it.
Printing more money
>This will create massive amounts of capital here
Which you don't get anything from since you aren't taxing it anyway.
> for companies to borrow, ensuring low interest rates
What the fuck are you smoking? Companies having their money stored in the U.S. has nothing to do with interest rates and borrowing, they don't borrow from eachother and you don't have ACCESS to that capital at all, because its being more invested abroad again.
>Like a giant tax haven.
Tax havens work by having low taxation but getting big companies to store money so you still make more profit on the low taxation than on none which you'd have otherwise. In this scheme there is NO taxation IN THE FIRST PLACE.
>Chinese corporate tax rate is 25% friend.
Which is completly unrelated to this? it doesn't undercut them for shit unless you think american companies can use it to produce cheaper in China than the chinese can which is utterly retarded.
Unless you're a big figure in a multinational company, you have no right to say we.