They use 100% legal means to keep money off shore. True. But then they ask for a Tax Holiday when that arrangement no longer suits them.
One way or another, that money will return to the US, and the tax will be paid accordingly. This will happen over a long period of time. If the US allows this tax holiday to happen, it will be throwing away billions of dollars in the long term with no real short term advantage, whilst sending a very dangerous message to people who use tax avoidance as a long term fiscal strategy.
It's corporate Americas job to make try and make the system work for them. It's the governments job to try and make the system work for everyone.
One way or another, that money will return to the US, and the tax will be paid accordingly.
See, that's where I disagree. All those companies can easily invest that money offshore, either in financial institutions or in building new facilities. Both seem to be worse outcomes for the US than this.
To be clear: I don't believe in the "trickle down effect" - I think a progressive system is the only sensible one. BUT I do think any trickle down is better than nothing.
sending a very dangerous message to people who use tax avoidance as a long term fiscal strategy
It's not tax avoidance, it's tax minimization. There is a big difference.
The message I see at the moment is "shift your profits and investment offshore, because it is cheaper". I'm not convinced that is beneficial.
It's the governments job to try and make the system work for everyone.
>It's not tax avoidance, it's tax minimization. There is a big difference.
I thought "Tax avoidance" was the legal term for legally minimizing your tax burden, so "avoidance" and "minimization" would be largely synonymous. "Tax evasion" I thought, was the term for avoiding taxes through illegal means.
One way or another, that money will return to the US, and the tax will be paid accordingly. This will happen over a long period of time. If the US allows this tax holiday to happen, it will be throwing away billions of dollars in the long term with no real short term advantage, whilst sending a very dangerous message to people who use tax avoidance as a long term fiscal strategy.
It's corporate Americas job to make try and make the system work for them. It's the governments job to try and make the system work for everyone.