Business Forum: Fix the nation's corporate tax code

  • Article by: CHARLIE KELLEY
  • Updated: November 25, 2012 - 11:32 AM

Cash may be king, but too often the monarch is exiled to foreign shores.

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pitythefoolsNov. 25, 12 6:36 PM

"The solution is not simply a tax holiday or a lower rate"

Correct. The solution is for those companies to repatriate the money and pay the taxes they owe, rather than leeching off the workers whose taxes pay for the roads, military and other infrastructure that support those businesses.

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lkylarryNov. 25, 12 8:29 PM

The problem with companies trying to bring that money back and "pay the taxes they owe" is that it can be considered fiscally irresponsible and could lead stockholders to vote out or even sue the board of the company for mismanagement. That's also why many companies have moved operations overseas. It's cheaper to do so, and it can be seen as irresponsible management strategy not to do so. I'm not saying that is right. I'm just saying that it is a problem that needs to be looked at. Our corporate tax rates are too high, and companies have to spend too much money on too many accountants to figure out how to best use all of those ridiculous loop holes to pay as little as possible. Simplify the rates and eliminate the loop holes. Yes, it will put a few thousand accountants out of work, but maybe they'll get rehired to figure out how to best spend the extra cash that the companies are bringing in after they spend their windfall on expanding their businesses. But the number one thing that will help these companies keep their money at home is if more people would buy American. Buy the wrench that Sears sells that's made by an American company here in America rather than the nearly identical one that Sears now sells under the Craftsman brand that's made in China. Buy the Levi's jeans that are made here in the US (at a significantly higher cost for a significantly higher quality garment) rather than their cheaper clothing that's made in Mexico and Malaysia. Buying American isn't as easy as it used to be. It takes more effort than the one stop trip to Wal-Mart. But it is what will help turn our economy around, and it's something that you and I can do without any help from the people we send to Washington.

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pitythefoolsNov. 25, 12 8:58 PM

lkylarry: "The problem with companies trying to bring that money back and "pay the taxes they owe" is that it can be considered fiscally irresponsible and could lead stockholders to vote out or even sue the board of the company for mismanagement"

Stockholders cannot "sue the board of Directors for mismanagement." They can vote in a new Board. That's it. There is NOTHING in Capitalism or the law that requires that a Board maximize profit. Despite what has been taught in the MBA schools for the last 30 years. It is a lie. As far as our corporate taxes being too high that is a conservative lie. The US has the lowest EFFECTIVE corporate tax rates of any industrialized Country on earth. Buy American? Admit that Adam Smith's experiment of Capitalism failed, and fall back to the Founders preference of Mercantilism and you'll find all the American-made products you want. Adam Smith's experiment is a failure, despite what the socialized public education may have taught you.

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ti1310Nov. 26, 12 7:45 AM

-----Admit that Adam Smith's experiment of Capitalism failed, and fall back to the Founders preference of Mercantilism and you'll find all the American-made products you want. Adam Smith's experiment is a failure, despite what the socialized public education may have taught you.---- High Tariffs are the answer? Get real... apparently the words Smoot-Hawley are irreverent to you. Put high Tariffs on and the economy will tank faster than you can blink...

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ti1310Nov. 26, 12 7:54 AM

----The solution is for those companies to repatriate the money and pay the taxes they owe, rather than leeching off the workers whose taxes pay for the roads, military and other infrastructure that support those businesses.--- These are foreign earnings not earnings made in the US, so no US roads assets etc were used..... Your argument has no merit.. No reason for them to repatriate it when they can keep it overseas and spend it overseas on expansion..

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