THEY VIOLATE YOUR AND OUR US CITIZEN'S RIGHTS.
They also obstruct our right to self determination by coding our US Territory of Puerto Rico as a Foreign country, so as not to pay US Taxes!) MJ
Here's a Corporate Tax Loophole a Porsche Could Drive Through
By AOL Jobs Jul 10, 2012
Volkswagen will be able to take advantage of a tax-law quirk that makes its Porsche transaction a "restructuring." The net result: Volkswagen will cut its tax bill by as much as 90%.For years, much of the tax-paying American public has been appalled by the loopholes that US corporations and rich individuals use to reduce their tax liability to the IRS.
Elsewhere in the world, those big money players generally abided by more stringent rules. But just as the US has exported American culture in everything from entertainment to fast food, so, too, have companies in other countries started mimicking the moves that have made US corporations infamous.
What's Fair Versus What's Right
As is the case with many US companies that take advantage of similar loopholes, there's nothing illegal about what Volkswagen is doing. In fact, companies typically argue that they have a duty to investors to minimize taxes whenever they can. But the amounts involved make such loopholes difficult for ordinary taxpayers to swallow. Bloomberg interviewed one German political leader who noted that the ability of large companies to avoid so much of their taxes undercuts the confidence that all taxpayers have in the tax system.
Similar tax shelters that US multinationals take advantage of, such as keeping income locked in foreign subsidiaries rather than repatriating it and paying the resulting tax, have drawn similar ire from US politicians.
Large fractions of the cash that large tech companies have on their hefty balance sheets, for instance, represent foreign earnings on which they haven't paid any US taxes. With the federal budget badly out of balance, the US government has targeted loopholes like these as ways to increase revenue. But the better solution would be to simplify taxes enough that the opportunity for complex tax-avoidance strategies would disappear. Until that happens, you can expect more deals like Volkswagen's to result in more lost tax revenue for countries around the world.
Read more: http://www.minyanville.com/trading-and-investing/taxes/articles/tax-loopholes-car-companies-tax-loopholes/7/10/2012/id/42296#ixzz20GAlHTCh
That's what republican party is all about. Tax loopholes for the rich and corporate entities paid by the middle class and the poor.
ReplyDeleteTax Loopholes have been there for decades, and have been supported by both Democrats and Republicans. (There are very rich Democrats, in case you have not noticed.) They are protected and sustained by the lobbying efforts of "the rich" corporations and are passed in the US Congress by the majority of its members, which include Democrats and Republicans.
ReplyDeleteDon't forget, Democrats have been controlling Congress for a while now.
In Puerto Rico, it's the (PPD) Democrat party who traditionally protect these loopholes and Puerto Rico as a tax shelter. In the last decade, the (NPP) pro-statehood party has joined the effort, although it is against statehood for Puerto Rico. They lobby intensively in DC to protect and improve the tax shelter benefits, something they are doing actively right now. In exchange, they receive local political support and in the NPP case, do not care if they betray their statehood followers.
It's not popular to be rich during these hard times, except for those who are. It is an ongoing political strategy by the Democrats to place the blame on Republicans.