Monday, September 26, 2011

Keep business happy: no red tape, no taxes

Some believe that businesses should pay no taxes and HST serves part of that purpose. A remaining aim of business is to pay no income tax but, because ruling parties find that politically difficult, the objective is pursued surreptitiously. It is done by silent use of loopholes and reliance on wink-wink, nudge-nudge enforcement. Billions of dollars shift jurisdictions without tax consequences in ways that would net commoners lengthy jail sentences but corporations and agencies of the aristocracy shuffle money to tax havens without consequence.

From Propublica:
"A simple rule meant to cut paperwork for U.S. companies has grown into one of the biggest multinational tax breaks around, costing the United States and other governments billions of dollars in lost taxes each year.

"...The rule is dubbed “check-the-box.” It allows U.S. companies to strip profits from operations in high-tax countries ..

  "...annual revenue losses from check-the-box have hit almost $10 billion. Other countries are also said to lose billions as income is shifted to places with low or no taxes...

"...The rule, along with other tax provisions, has helped fuel explosive growth in foreign investment by American corporations. Since 2004, the earnings that U.S. companies keep overseas have doubled to about $1.8 trillion, U.S. Department of Commerce data show..."
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