If you or I work overseas, we are taxed on our income, sure a small amount is technically tax-free, but even then it’s not fully tax-free, you have to pay some taxes and let’s not forget the huge fees one has to the accountants if one works overseas. However, the law is completely different from U.S Multinationals; they do not have to pay taxes ever on profits they have earned overseas until they bring that money home. If they never bring that money back to the U.S, they will never pay a dime in taxes. These massive companies are holding onto more than $2.1 trillion dollars of untaxed profits, and all of this money is conveniently held in tax havens. The tax bill for this would be rough $400 billion dollars. Instead of going after these vampires Congress wants to forgive them on their debt. The corporations are stating that they will not bring the money back until some sort of plan is formed. The solution is simple; offer to seize their assets as would be the case with the average Joe and watch how fast they will bring home those funds.
Remember these guys are not asking, they are demanding the following things:
They won’t bring the money back and pay any taxes they owe until Congress reduces the taxes they owe to pennies on the dollar. In essence, they are telling Congress to let us get away with murder and only give us a very tiny sentence for any crimes we might admit to.
They also want the tax rate to be permanently lowered on all their future earnings. Talk about adding insult to injury. Some Republican leaders who are probably bought and paid for by the corporate world are suggesting that we eliminate taxation on foreign income permanently for corporations but not U.S Citizens.
Would it not be nice if the average Citizen had the same option where we could state “hey you know the tax rate is too high”; we want to renegotiate the rate or we won’t pay any taxes. However, we all know what will happen if we try this; The IRS will hunt you down.
At least one person in Congress has the brains and the guts to stand up and describe the situation for it really is:
“A giant wet kiss for the tax dodgers.”
Another decent senator is Sanders, who together with Warren have repeatedly stated that the entire Tax system is rigged in favour of the corporate thieves. Sadly the masses have no clue this is taking place right in front of their eyes because as usual the media is not covering issues that matter. They continue to focus on crap and drama.
The corporate world is also threatening Congress by stating that if they are not allowed to get away with murder, they will decide to leave the U.S. However, in reality, this is just a Gimmick. What they do is simply move their headquarters and everything else remains here, but now their tax rate drops to a negligible level. Would it not be nice if we the people could do this, but no, only the greedy corporate world is allowed to get away with this fraud?
Congress instead of standing up to these scoundrels is ready to give in stating that they have no choice but to give in to the bankers, drug markets, etc. All they would need to do is impose severe penalties and threaten to ban the companies from doing business in the U.S, and these corporations would listen like well-trained dogs.
If the masses were only aware of what is going on and has been going all this time, they would stand up and storm Congress and probably hang a few members from the corporate world.
We do not think Congress has the Guts to enact a law that will punish multinationals; they are far happier at chasing poor citizens who they know do not have the money or power to resist and so out of desperation they are forced to pay taxes that the Corporate would consider outrageous. Under such conditions, corporate share buybacks will flourish propelling the markets even higher. Look for top companies and use strong pullbacks to open new positions. This bull market is destined to run a lot higher, not because the economy is healthy but because Fraud is rampant on Wall Street.