General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsI wonder if instead of trying to get US based corporation to pay income tax...
Why don't we charge them a fee to do business in the US, maybe even to each state and municipality. The fee for doing business would be based on last years gross income earned in the US, in the state and in the various incorporated municipalities.
They turn in end of year stats, write a check and then you are done with it.
Just a thought.
CaliforniaPeggy
(149,715 posts)It's simple enough.
I wonder, though, how the corporations would like it...
Don't they prefer things to be complicated so that they can evade the taxes, and have it not be obvious?
WCGreen
(45,558 posts)avoiding paying income tax...
CaliforniaPeggy
(149,715 posts)But of course, you're right...
Anything to help the bottom line...
Marie Marie
(9,999 posts)It's all just a game to them.
taught_me_patience
(5,477 posts)pretty steep for small businesses.
WCGreen
(45,558 posts)All forms of would be taxed the same rate.
Look, at the very least, it would cut down on accounting fees.
taught_me_patience
(5,477 posts)gross income has nothing to do with profits.
jtuck004
(15,882 posts)Hoyt
(54,770 posts)WCGreen
(45,558 posts)But rather paying or the privilege too do business in the USA.
quakerboy
(13,921 posts)In Portland, OR, I believe it is 2.2% of net.
But here's the thing. They will just offshore it. If you make your product in China for 2 cents, then your Chinese branch sells it to your US branch for $30, and then your us branch sells it for $32, your local net is only $2 per, minus expenses. My understanding is that they already do just this.
But if you go gross, you basically eliminate any low profit margin ventures.
WCGreen
(45,558 posts)It would actually lower taxes from thousands of business who don't qualify for all those loop holes in the Income Tax.
Progressive dog
(6,920 posts)WCGreen
(45,558 posts)It would be based on Gross Income. It would include interest earned, dividends earned, capital gains so it wouldn't be a sales tax.
Progressive dog
(6,920 posts)that make stuff.