Under the present IRS Code, Puerto Rico is considered a foreign jurisdiction, thus we would not qualify for this policy if it is implanted. If this policy is adopted, Puerto Rico will lose it's barganing power to negotiate a Satehood Admission Act for Puerto Rico with the support of the CFC's. MJ
"This topic generates passions on both sides of the aisle. Those for a tax amnesty on repatriated funds argue it will generate billions in additional corporate tax revenue, fund pension plans, raise wages, create jobs, invest in new plants and equipment, and benefit shareholders. Those against argue there was no evidence that the 2004 repatriation legislation increased U.S. investment or jobs.Regardless of which side of the argument one sides with there is no doubt about the potential benefits to both the company and shareholders.
Currently, there is over $1 trillion earned by American businesses, which has been taxed once, sitting overseas. According to recent SEC filings the combined amount of cash and investments held by foreign subsidiaries for Apple (AAPL) and Microsoft (MSFT) exceeded $90 billion as of the quarter ending June 30. This amount could exceed $100 billion by the end of the next quarter.There is bipartisan support building for a repatriation holiday in some form. Given the state of the economy we feel there is a good chance a tax amnesty, or a reduced tax rate, is a possibility; benefiting the companies mentioned in this article."
http://seekingalpha.com/article/287197-how-companies-would-gain-from-a-u-s-tax-amnesty-on-repatriated-fundsmore:
History shows that those against the tax amnesty are correct. No tax amnesty for repatriated funds has produced any gain at all for the US economy. The same reasoning was used in repeling section 936 of the US tax code and no nex tax revenue was generated because the law provided a loophole for multinationals to keep their funds outside the USA to avoid taxes. Tax amnesties are the worst way to generate tax revenues and new econonomic activity. First, they are inmoral because they create a sense of impunity in tax evaders. Nothing will happen to them because down the road there will always be a tax amnesty to benefit from. Second, only the rich and corporate entities benefit from it. Third,it places a heavy burden on the salaried middle class and financial stability of the govenrment. What the USA needs to do is revamp the tax code to eliminate loopholes and tax expenditures imposed the republican party. This will lead to a fair tax system and the economic growth needed. And pay no attention to the tea party weirdos!
ReplyDeleteBRAVO!
ReplyDeleteMJ
A la verdad no entiendo el comentario de MJ, sobre el apoyo de las CFC a la admisión de Puerto Rico como estado.
ReplyDeleteEl liderato estadista de Puerto Rico o no quiere la estadidad o está totalmente despistado en cuanto a como adelantar la estadidad.
Puerto Rico no tiene la más mínima oportunidad de convertirse en estado, hasta que los partido nacionales, el Pardido Democrata y el Partido Republicano comiencen a participar en las elecciones locales. El GOP no va a aceptar un estado con 6 representantes, 2 senadores y 8 votos en el colegio electoral, cuando la experiencia de los votantes puertorriqueños en EEUU es totalmente a favor del Partido Democrata.