TitanTiger 17,612 Posted December 15, 2017 Share Posted December 15, 2017 Quote ...This bill, despite the glossy, small business-friendly language being used to sell it, would actually do more to widen the tax advantage gap between large businesses and small ones than our present -- and already tilted tax code -- does. This bill does just that, thanks to the change from a worldwide tax system, which requires US companies to pay Uncle Sam taxes on all their profits, regardless of where the income is earned, to something called a territorial one, under which companies don't owe taxes to their own governments on income they make offshore. This change, if enacted, would encourage wealthy businesses to learn how to go offshore to gain a more favorable tax rate than is available within our borders -- giving them a significant financial and competitive advantage over our neighborhood mom and pops trying to stay afloat onshore. Main Street small businesses aren't among the lucky beneficiaries of a territorial tax system. Right now, companies must pay taxes if they repatriate earnings made outside the United States. But by shifting the tax code from a worldwide system to a territorial one, they would no longer have to pay any tax on repatriated foreign earnings; the US tax is simply eliminated on foreign income. Businesses would be allowed to shift profits offshore to avoid American tax rates. Essentially that means we would be creating a tremendous incentive to reassign or push profits offshore; businesses with the financial wherewithal and accounting savvy to take advantage of it could create perfectly legal tax shelters... http://www.cnn.com/2017/12/14/opinions/gop-tax-plan-territorial-small-business-zimmerman-opinion/index.html The writer is an accountant who has actually read the bill. This is the kind of crap that ticks me off. You try to ram a bill through before people can read it fully (anyone remember the ACA?) so people can't figure out the tricks you're trying to pull. Link to comment Share on other sites More sharing options...
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