Sanders: 'Your $8.99 Netflix subscription is more than the company paid in federal income taxes

Dec 2018
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Confiscatory? Many pay nothing now... LoL So, according to you there is no alternative to multinationals corporations paying nothing in taxes? You are a loyal Republican!
Laugh all you like, but the simple fact is that many are not paying nothing. They're just paying nothing to the US and instead their tax payments are funding public infrastructure, education, and social benefits in some other country.
 
Dec 2018
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Nat, in the US they paid zero. In some other countries they paid $133 B if IC's figure is correct. How much better a tax jurisdiction can they hope for than zero? Should the government pay for them to be in the US?

THAT'S SOCIALISM.
I don't think you're getting it. To oversimplify Netflix's tax situation almost certainly, they probably had a choice of paying $133b in income taxes in jurisdictions outside the US or paying something like $200b having that income tax here. Why should it surprise anyone they choose the lower tax bill?
 
Dec 2018
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It's time they paid their fair share in the U.S., don't ya think?
It's time you folks realized it's a global economy and you cannot grab a "fair share" from income earned in someone else's country. For starters, that country has absolutely zero incentive go along with your definition of "fair."
 
Dec 2018
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It's time you folks realized it's a global economy and you cannot grab a "fair share" from income earned in someone else's country. For starters, that country has absolutely zero incentive go along with your definition of "fair."
Did you not read the article posted 15 minutes ago? Or are you so cocksure about MNCs that you don't need to? No wonder the U.S. debt skyrockets.
 
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Last year, Amazon, which is now valued at about $US869 billion, paid zero US federal income tax on record profits of more than $US11 billion.Nov 20, 2019


Verizon's effective federal income tax rate was negative 2.8% from 2008 to 2012. The official corporate tax rate is 35%. This difference allowed Verizon to avoid $7.3 billion in taxes. Verizon had $1.9 billion in accumulated offshore profits in 2012, on which it did not pay U.S. taxes.

VERIFY: Yes, these U.S. companies avoided paying federal income tax in 2018
It's estimated that all 60 companies would have generated $16 billion in taxes.
 
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Dec 2018
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Did you not read the article posted 15 minutes ago? Or are you so cocksure about MNCs that you don't need to?
Yes, I did. You don't get it, at a certain size there are no purely American companies.

Work with me here. Let's suppose someday in the future you own a US-based company that makes widgets. You're also dealing with President Sanders's new highest-in-the-western-world 40% corporate income tax rate. For less than $100k, you set up Rescue Basket AG, a Swiss company, in a lovely lakeside Canton south of Zurich with a nice 15% corporate tax rate. You arrange things such that the intellectual property rights for your new generation of internet-enabled widgets is owned by this Swiss entity. Rescue Basket AG then leases the right to manufacture and sell the iWidget to Rescue Basket Inc.

And now for the magic: through a remarkable coincidence, the licensing cost for the iWidget just happens to match the differences between Rescue Basket Inc's revenue and its operating costs for the product. Thus Rescue Basket Inc. shows little or no profit on that product and pays little to no income taxes in the US on income from that product. Rescue Basket AG is, of course, making a fine profit with low overhead and, in effect, the entire net income of the iWidget rolling in in the form of lease payments, a nice chunk of which is shaved off and goes into Switzerland's treasury, thank you very much.

Over time, all of your widget lines will be handled this way, and Rescue Basket Inc's US tax bill will look a lot like NetFlix's.

Meanwhile, President Sanders and his supporters continue to bask the self-righteous glow of having shown those greedy corporations who's boss with that new 40% tax rate.
 
Dec 2018
6,583
1,879
New England
Last year, Amazon, which is now valued at about $US869 billion, paid zero US federal income tax on record profits of more than $US11 billion.Nov 20, 2019


Verizon's effective federal income tax rate was negative 2.8% from 2008 to 2012. The official corporate tax rate is 35%. This difference allowed Verizon to avoid $7.3 billion in taxes. Verizon had $1.9 billion in accumulated offshore profits in 2012, on which it did not pay U.S. taxes.

VERIFY: Yes, these U.S. companies avoided paying federal income tax in 2018
It's estimated that all 60 companies would have generated $16 billion in taxes.
Yes, so let's make American corporate tax policy even more punitive because that will make Amazon decide to leave more income in the US, right?
 
Dec 2018
3,784
3,077
Indiana
Yes, I did. You don't get it, at a certain size there are no purely American companies.

Work with me here. Let's suppose someday in the future you own a US-based company that makes widgets. You're also dealing with President Sanders's new highest-in-the-western-world 40% corporate income tax rate. For less than $100k, you set up Rescue Basket AG, a Swiss company, in a lovely lakeside Canton south of Zurich with a nice 15% corporate tax rate. You arrange things such that the intellectual property rights for your new generation of internet-enabled widgets is owned by this Swiss entity. Rescue Basket AG then leases the right to manufacture and sell the iWidget to Rescue Basket Inc.

And now for the magic: through a remarkable coincidence, the licensing cost for the iWidget just happens to match the differences between Rescue Basket Inc's revenue and its operating costs for the product. Thus Rescue Basket Inc. shows little or no profit on that product and pays little to no income taxes in the US on income from that product. Rescue Basket AG is, of course, making a fine profit with low overhead and, in effect, the entire net income of the iWidget rolling in in the form of lease payments, a nice chunk of which is shaved off and goes into Switzerland's treasury, thank you very much.

Over time, all of your widget lines will be handled this way, and Rescue Basket Inc's US tax bill will look a lot like NetFlix's.

Meanwhile, President Sanders and his supporters continue to bask the self-righteous glow of having shown those greedy corporations who's boss with that new 40% tax rate.
I get it - - no one who writes U.S. tax law is shrewd enough to outsmart the attorney's and financial wizards who work for MNCs. There is no alternative to their brilliant accounting schemes or their campaign contributions to members of Congress and Presidential candidates! Don't these K-Street multinational corporate attorneys write our corporate tax laws anyway?

 
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RNG

Forum Staff
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Laugh all you like, but the simple fact is that many are not paying nothing. They're just paying nothing to the US and instead their tax payments are funding public infrastructure, education, and social benefits in some other country.
So, if they aren't paying anything here what are you suggesting. What is going to magically make them move here and bestow those benefits on the US?