sorry, you brought it up, so why don't you start a new topic and explain it to all of us who you think don't understand?

As I said, the earnings placed in offshore banks as tax havens must be earned outside the US.  You can't sell cars in the US and then TRANSFER (your word) that profit to offshore banks.

Seems like you just want to argue.  Either that, or you have a few gaps in your knowledge.

https://www.investopedia.com/ask/answers/100215/why-cayman-islands-considered-tax-haven.asp#ixzz52ot6Cic6

Nope. Instead they will do what they have always done. Hoard that cash and play it on the ponies until the whole house comes crashing down.

Apologies for judging you. I've made enough facepalm-worthy assumptions in my life to fill an Encyclopedia of Shame, and looks like I've still got a few chapters to go.

Yes the law is already so screwed up that companies can offshore profits made IN THE UNITED STATES tax-free by doing what is know as a “deferral.”

https://americansfortaxfairness.org/general-electrics-special-tax-loophole-lets-company-dodge-billions-in-taxes/

This is why I get upset (really should learn to control it better) when people talk about the imaginary concept of corporate goodwill and how jobs will be created if we reduce their tax burden, etc. Nope. Instead they will do what they have always done. Hoard that cash and play it on the ponies until the whole house comes crashing down.

Like a lot of huge corporations, GE dodges taxes by stashing profits offshore. A loophole in federal tax law allows companies to
avoid paying U.S. taxes on profits they earn (or claim to earn) outside the United States until the income is brought back home

General Electric CEO Jeffrey Immelt was charged by the president with a Herculean task: figuring out how to get big American firms to start
hiring again. First, he says, we need "a sense of national urgency around jobs" and a government that's focused 100 percent on the task
at hand. But can Immelt, a self-proclaimed globalist when it comes to running his own company, really help solve America's biggest domestic
problem?

The New York Times reported last month that General Electric earned $14.2 billion in international profits, including, $5.1 billion in the United States.
Yet GE did not pay a dime in federal income taxes last year. Oddly, President Obama chose GE Chairman and chief executive Jeffrey Immelt to head
his President's Council on Jobs and Competitiveness.

According to the Associated Press, Immelt's compensation package doubled to $15.2 million last year, while this year, GE is seeking major concessions
from the unions that represent its shrinking American workforce. That makes Immelt the wrong guy for the job of jobs czar.

That's not what concerns me. I'm worried about the $1.2T debt it will cause and no, I don't believe the gains in the economy will make up for it. Next year, entitlements gotta go and that will push more Dems to want to vote in November. After all, most people vote because they're angry, not because they're happy.

Proud to say I haven't insulted anyone yet. Not unless you consider being disagreed with an insult.

Wasn't ignoring anyone just got busy and haven't been checking this thread regularly. Demanding that I make a timeline prediction is a way of avoiding the subject of cause and effect. Is it fair to say that because I don't know on which day the next flash flood warning will be issued that I must not understand how weather patterns work?

What the hell?! We are not trying to AVOID the subject of cause and effect, we are asking you to be specific and concrete (not engage hypothetical generic ("unregulated Capitalism")). There is a huge difference between saying that patterns of events that have happened historically will continue to repeat and that you have the explanation for the pattern and thus a solution to avoiding the repetition of the pattern of events. Not only will you not tell with any specificity about the timing or exact nature of the next major event, but you won't tell us the concrete specific solution to avoiding the repetition of the pattern of events. Just tell us. Quit being coy. Or don't you know? Or are you unwilling to put your hypothesis to a test?

Inspector conceded a very important point just now and everyone missed it. There are crashes that happen with enough regularity that anyone can predict the next one is inevitable, but instead of asking why unregulated Capitalism seems to have a self-destruct mechanism built in the media has us obsessed with getting out in time and making money on the way down. Nevermind the millions of Americans who lose their jobs and savings and wind up on the street while kids turn to prostitution just to get an education.

The latter dire forecast is based upon the Tax Bill alone, or the total cumulative evil of "unregulated Capitalism"? You mean compared to how well "unregulated Communism" or "unregulated Socialism" have worked? Or even "regulated" Communism or Socialism? See: (former) Soviet Union, Venezuela, North Korea, etc. What is your solution? Specifically... i.e. exactly what role, to what extent, in what specific ways does government take vs. private enterprise in all social and economic matters? I'm asking for real world specifics because we can all see from the unendingly repeating pattern of the actual application of Marxist/Communist/Socialist/anti-Capitalist theoretical doctrine how things really turn out (Where exactly is the Workers Paradise? Oh, that's right, they just haven't "applied if properly". Yeah, sure, NEXT TIME...). Just tell us for Christ sake. Is it some big secret or something? You trying to patent it?

We are taking this for granted as if it's a force of nature, but if I point out that there are certain patterns (one of which is tax breaks for the ultra wealthy that lead to massive bubbles and rob the real economy of investment capital) that means I must be Marxist.

You do know that even Marx famously said "I am not a Marxist", so your feigned objection carries no weight whatsoever. (Marx said it in the context of someone who claimed to be a Marxist applying Marxist doctrine had advocated for a policy (revolution only, no compromise by "reform") that Marx said he disagreed with...). I.e. "Marxism" can mean anything to anyone, and thus it means nothing at all if anytime it "doesn't work" in the real world people object by saying "Well, that wasn't REAL Marxism". Thus our request of you for concrete and specific details about how your anti-Capitalist regime is structured.

Taking a sophist approach might help you feel better about ganging up on somebody with groupthink, but you are actually doing more to promote the cause of Marxism among the growing number of for whom the American Dream sounds more like a cruel hoax. When enough people realize the conventional wisdom is FOS I'm sure there will be a lot more interest in even worse arrangements than the one we have now. Nice job, Comrades.

I guess if you can repeat yourself, I'll have to repeat myself: Just tell us exactly, specifically what roles government and private enterprise take in all social and economic matters and in what form in terms of laws those roles are enforced. Just do it.

Crazy forecast: More diversion and generic hypothetical responses in 3... 2... 1...

You are delusional. 

Does this mean I should shift to cryptocurrency such as BitCoin?

If you're taking investment advise from hvybarrels, you deserve whatever you get!   

 

Can you give specific examples where corporations were allowed to legally transfer profits they earned in the US to off-shore banks to keep from paying taxes?

My understanding is, if the money is earned in the US, it's subject to taxation.  There's no way to put that money in offshore banks and avoid taxes -- legally, that is. 

If the money is earned overseas, THEN they can stockpile that cash in banks.  The high US corporate tax rate is what's been preventing these companies from investing that money in the US, because as soon as they bring it into the US, they owe income tax on it.  That's like voluntarily handing over 20% of their cash reserves to Uncle Sam.  If you're talking about billions, that 20% is a huge hit to your liquid capital.  It helps explain why many companies opened stores and operations overseas, so they can pay less tax, or no tax, on that money.

First of all, US Corporations are subject to US federal taxation regardless of where their profits originates.  However, due to the current loopholes in the law, many corporations legally elect to not repatriate much of their wealth back to the US; hence, deferring their tax liabilities.  The prevailing presumption underpinning the current GOP tax bill is the belief that by lowering US federal corporate taxation, many US corporations will elect to "bring back their profits back home", through which those funds can be reinvested back into the domestic economy, stimulating job growth and wage/salary increases, as well as fulfill their tax obligations to the federal government.

This is what is hoped and let us pray it happens.

However, keep in mind, a one time tax holiday was passed under the Bush Administration in 2004.  The results did not result in the creation of jobs nor increasing the wages and salaries of American workers (https://www.nytimes.com/2017/11/29/business/taxes-offshore-repatriation.html).  Furthermore, according to Center of American Progress (https://www.americanprogress.org/issues/economy/reports/2014/01/09/81681/offshore-corporate-profits-the-only-thing-trapped-is-tax-revenue/), much of the so called "overseas profits" are actually already being utilized domestically in America.  Hence, decreasing the US Corporate tax rate will only let those corporations utilizing the deferrals of overseas tax liabilities further escape paying their fair share of taxes as well as very unlikely have its desired effect of spurring more economic activity, let alone increase workers wages or salaries.

And you are still avoiding the subject.

BTW, I saw this post before you changed asking me what you said that was an insult. You know what you said. Otherwise you would not have changed to what is quoted above. It was completely obvious. You are still delusional.

What's happened, and what will happen, is not going to mirror past events, because this situation isn't like past situations.  I'm seriously optimistic the GDP growth will see 5% in a quarter.  I know that's considered nearly impossible, but Trump is the guy to do it if anyone can.

No I changed it because I realized that it's just another attempt to drag me into a tangent trap and avoid addressing the issues I raised. Most likely because your arguments are based on misinformation spread by the institutions that have to most to gain from this legislation, and they don't hold up very well under close examination.

Then you should educate yourself.  Your beliefs are faulty...

Based on 2015 returns:


http://www.pewresearch.org/fact-tank/2017/10/06/a-closer-look-at-who-does-and-doesnt-pay-u-s-income-tax/ft_17-10-04_taxes_stats/

The tip-top 0.1% of filers pay 20.2% of all taxes collected.
If you add the next tier, 0.8% of all filers pay 17.9% of taxes collected, which means the top 0.9% (roughly 1%) pays 38.1% of what is collected by the IRS.

The bottom 43.8% only pay in 1.4% of the total taxes collected.

In terms of actual dollars, the 0.9% top earners pay an effective average rate of 27.5%.  The bottom 43.8% pays in at a tax rate of 4.9% of their income.

No matter how you slice it, the top 1% is paying over 1/3 of what the IRS collects in total.  How can you possibly think they pay less in "absolute dollars?"



Based on 2014 returns:

https://www.bankrate.com/financing/wealth/what-does-1-percent-pay-in-taxes/

No I changed it because I realized that it's just another attempt to drag me into a tangent trap and avoid addressing the issues I raised. Most likely because your arguments are based on misinformation spread by the institutions that have to most to gain from this legislation, and they don't hold up very well under close examination.