SGG's What's Your Issue Poll

[saden1]

Originally Posted by Beemnseven

If I start a business making widgets in Germany, I will pay taxes on what I earn in Germany. If my German-based business really takes off, and I start selling my products to Switzerland, the German government will not tax me on my sales in Switzerland. Every other industrialized country in the world has that policy except the United States. If I base a company in America making widgets, not only will I pay taxes on my sales in the United States, the U.S. Government will also tax me on the sales of my product if start selling it in Mexico. Again, we're the only industialized country in the world which has that form of double taxation. What some corporations are doing, is basing their headquarters outside the United States in countries that do not have that oppressive tax policy.

It simply comes down to what makes the good business sense. Is it therefore wrong for an American to base his company's headquarters in the Cayman Islands in an effort to avoid greater costs of operating his business? Is that immoral to you?

That is a blatant lie the talking heads on TV are spewing. Straight from the horses mouth:

Corporate entities whose registered or administrative office is located in Germany are subject to corporate income tax on their global income. The corporation tax law makes extensive use of the principles and provisions of income tax law, especially in respect to the determination of profits and the assessment and payment of tax.

No developed nation would allow a system in which companies don't pay taxes on certain earnings/profits. If the United States did as you suggested we would be fucked! We would lose half the taxes Blue Chip companies like Boeing, GE, and IBM pay.