USA looking at closing tax loopholes

[Not So Wise]

But for once not targeting the "little guy"

Obama crackdown on tax loopholes

Wonder how long (if ever) until we see the UK following USA in this? Can see this being pretty devastating for the likes of Ireland if it goes though, though still think it would be better if other countys followed the low flat rate with no exceptions/loopholes tax model thus removing the motivation for companies to do this kind of thing in the first place

Though got to wonder at the estimated "extra revenue" recovered figures, say would be more like $210bn per year instead of per decade if done right

[threaded]

Someone might care to correct me on this, but I understand that in the American system your tax exposure is on your total earnings, throughout the World. This would then give another slant to this quote:

In addition, at present US firms are allowed to claim a credit against their American taxes for foreign taxes paid.

But the Obama administration wants to end this practice ...

[HairyArsedBloke]

"The president said he wanted to "make it easier" for US companies to create jobs at home. "




Some companies will end up moving ALL their operations overseas.

[thelace]

These laws are always brought in "to tackle the big guys" but are actually used on us little guys because we can't afford the lawyers the big guys use!

[TykeMerc]

According to the BBC News this morning (so info is suspect) the US equivalent of corporation tax is 35%. If it is then I'm stunned that any international companies would decide to base there at all.

[Clippy]

According to the BBC News this morning (so info is suspect) the US equivalent of corporation tax is 35%. If it is then I'm stunned that any international companies would decide to base there at all.

I think some companies get massive local tax breaks for setting up operations in certain states.

[Sysman]

According to the BBC News this morning (so info is suspect) the US equivalent of corporation tax is 35%. If it is then I'm stunned that any international companies would decide to base there at all.

Being close to your market and making sure you don't suffer from "protectionist" import tariffs are a couple of reasons. And there are tax friendly states; Delaware is a favourite for many corporations.