>First, the formula bases a firm's "routine" return as a percentage of its tangible assets located overseas, including plant, equipment, and other physical assets. Because “routine” returns are not subject to US tax, this definition of "routine" returns could give US firms a perverse incentive to shift more tangible assets to lower-taxed overseas locations. This would increase a US firm's tax exempt "routine" returns and thereby decrease its excess returns -- the key amount subject to the US minimum tax.
>Second, the proposed minimum tax rate, after exempting those “routine” returns, is too low, which makes the guardrails largely ineffective. Under the Senate bill, a US firm that invests $100 million in tangible property abroad and makes a foreign profit of $20 million, would pay only about $1 million in tax (only 5 percent of $20 million) rather than the $2 million it would owe under a 10 percent minimum tax without the exemption.
>How can the tax bill be cut in half? By deducting a “routine” return on tangible property which, in this example, would be a 10 percent return on the $100 million, or $10 million. The 10 percent tax on the remaining excess return, $10 million, equals $1 million. Thus, by subtracting those “routine” returns, the firm would lower its effective tax rate to 5 percent for its foreign profits, compared to the 20 percent rate on domestic profits. To put it another way, the firm would pay $1 million in tax on $20 million in foreign profits but $4 million on the same amount of earnings from a factory in the US.
we should start seeing mass job losses and also huge tax evasion by corporations next year
this tax bill is a fucking disaster
Joshua Long
>tfw it’s a leaf and a swede drumpf posting
Kevin Gonzalez
fuck off obama leaf
Cameron Diaz
leaf that respects and defends trump every chance I can get
How can I defend OP?
Zachary Wright
>we >leaf foreigner
fuck off
guess what, if you dont smother and choke your economy with taxes your economy actually grows faster and this will result in greater revenue of the goverment, albeit a lower percentage of control of the total economic market, which was actually the whole goal of letfies all along!!! WHOA
Julian Barnes
but if you LITERALLY make outsourcing tax deductible?
Sorry for laughing at you first thing in the morning.
Noah Ortiz
it's 6:30 pm
Aaron Brown
Shouldn't he be walking the other direction? Instead of taking bags full of money away, he should be giving bags full of the persons own money back.
James Morales
>obamaleaf posts more bullshit from his blog
wow.
Zachary Morales
You're following the fallacy of equilibrium. The graph is assuming that if GDP and spending remains as it is and we have a tax cut we will have a loss.
But GDP is scheduled to grow and welfare reform will cut spending. Therefore your assumptions and conclusion are wrong.
also Tax cuts reduce revenues. The fact that right wing retards don't understand this is why u can't be trusted with money.
William Campbell
You ignored the content of his post
the very projections that were used in the graph you posted are based upon the presumption of static 1.5-2% growth, meanwhile, in reality, the economy grew by at or more than 3% in 2017 and the momentum is evidently shifting to even faster growth in 2018.
That's without factoring the Tax reform bill and the first initial inlay of wealth currently being held outside the U.S. and the effect that will have on the economy. If you were to project 3-4% growth next year the forecast would be a revenue increase due to the bill.
Joseph Parker
Leftists consider loyalty to the nation to mean loyalty to the state and its implementations
Conservatives consider loyalty to the nation to mean loyalty to its people and their wellbeing
Lucas Perry
The CBO also said Obamacare would be miraculous. Fuck off OBLEAF
