Saturday, April 6, 2013

INTENSE CAMPAIGN BY THE CORPORATIONS TO PROTECT THEIR TAX EVASION SCHEME

A poster to favor tax benefits for corporations in the IRS ??? This is an example of the many actions, including lobbying, etc., being used by the corporations to protect and improve their US tax evasion scheme. Read the full article to see the politically influential voices on their side. 
NOTICE THAT THEY ARE FROM BOTH PARTIES.
This is a mortal blow to the US economy and to the US taxpayer.
I would like to know if I can also put up a poster in the halls of the US Internal Revenue Service that says the damage this has done to the economy and status of Puerto Rico, (and the US) a territory of the United States. mj

Should the US adopt a territorial tax system?

Backers of a territorial tax system argue that the current worldwide system puts US firms at a competitive disadvantage since they must pay the high US tax rate on repatriated profits earned by their affiliates in low-tax countries, while multinationals based in territorial countries pay only the local tax rate on these profits, Toder writes.

THE CHRISTIAN SCIENCE MONITOR
By Eric Toder, Guest blogger / April 5, 2013
Posters hang in the halls of the US Internal Revenue Service building in Washington. Some corporations would benefit from the chance to bring back their overseas profits without paying today’s repatriation tax, Toder writes.
Ann Hermes/Staff/File


House Republicans, former GOP presidential hopeful Mitt Romney, and the chairs of President Obama’s 2010 fiscal commission, Erskine Bowles and Alan Simpson, have all called for changing the way the U.S. taxes multinational corporations. The concept: Shift from a system where U.S. firms pay U.S. tax on their worldwide income to one where they’d pay U.S. tax only on what they earn at home—a structure known as a territorial system. A territorial system would accomplish this by removing the current tax that U.S. multinationals pay, net of foreign income tax credits, on dividends that their foreign affiliates repatriate to the U.S. parent company.