SWISS TEXANS?

[phatdaty]

Anybody else watching 60 Minutes pissing and moaning about all these Houston energy firms moving six or seven employees over to Geneva and counting that as their corporate headquarters to dodge taxes?

When will the Washington dumbasses figure out that they created this situation. The reality is that the threshold for taxes is right about 17%???

They keep raising tax rates while every other country is lowering the rate and courting our companies?

If they would lower the taxes to a fair rate, there would be no exodus and tax revenue would INCREASE!

Instead, they pass law after law, make the tax code even thicker and more convoluted, and then raise it again to make up for the exodus.

[charlestudor2005]

Originally Posted by phatdaty

If they would lower the taxes to a fair rate, there would be no exodus and tax revenue would INCREASE!

Ah, the Wal-Mart business model for government. Sounds like a plan. It's worked for WM.

[Marcus Aurelius]

Has anyone been to a bank in Grand Cayman?
No more hiding boys and girls.

[pjorourke]

Originally Posted by phatdaty

When will the Washington dumbasses figure out that they created this situation. The reality is that the threshold for taxes is right about 17%???

Word! For individuals as well.

[Mazomaniac]

Whew. Jesus.

When I saw "Swiss Texans" I thought for a minute that somebody was mating them. God would that be a terrifying combination.

You scared the crap out of me phatdaty.

[NinaBrooke]

Originally Posted by phatdaty

Anybody else watching 60 Minutes pissing and moaning about all these Houston energy firms moving six or seven employees over to Geneva and counting that as their corporate headquarters to dodge taxes?

Can you elaborate this for me. From my knowledge i don`t understand how this is possible. They dodge taxes how? BEcause they send americans to Geneva for work? The USA is in the lucky position to have the right to demand taxes from their citizens no matter where they work on the planet. I had europeans giving up their Greencard for that reason.

The dollar is same as swiss frank. But the taxes? are they not about the same. Sorry if i sound stupid, but i miss the logic here, so i`d like to have a long version for the short-wired people ;-)) thanks

[Marcus Aurelius]

Originally Posted by ninasastri

Can you elaborate this for me. From my knowledge i don`t understand how this is possible. They dodge taxes how? BEcause they send americans to Geneva for work? The USA is in the lucky position to have the right to demand taxes from their citizens no matter where they work on the planet. I had europeans giving up their Greencard for that reason.

The dollar is same as swiss frank. But the taxes? are they not about the same. Sorry if i sound stupid, but i miss the logic here, so i`d like to have a long version for the short-wired people ;-)) thanks

Where the hell were you 20 years ago nina? Dang.

[atlcomedy]

Originally Posted by ninasastri

Can you elaborate this for me. From my knowledge i don`t understand how this is possible. They dodge taxes how? BEcause they send americans to Geneva for work? The USA is in the lucky position to have the right to demand taxes from their citizens no matter where they work on the planet. I had europeans giving up their Greencard for that reason.

The dollar is same as swiss frank. But the taxes? are they not about the same. Sorry if i sound stupid, but i miss the logic here, so i`d like to have a long version for the short-wired people ;-)) thanks

See my post #16 in this thread...still a short version

http://www.eccie.net/showthread.php?t=196838&page=2

Sure the US can tax US Citizen Personal Income, but that is small potatoes for a large corp avoiding Corporate Income Tax (just for Doove I'll bold both)

Now as a disclaimer I didn't actually hear the piece as I was in a bar with the sound down follow the basketball game, but I think I got the gist of it...

If I'm not mistaken, the wrinkle here was 60 Minutes walked in on one of these "HQ's" and there was nothing but a bunch of junior employees as window dressing. (Read my other post and the following will make more sense) To be a legitimate (meaning legal, not making a right or wrong judgement) tax shield, the decison making actually has to take place there, it can't just be junior employees and a fancy office.

The Swiss love this and appreciate that a small % of a big number is better than a large % of a small number

[phatdaty]

Originally Posted by ninasastri

Can you elaborate this for me. From my knowledge i don`t understand how this is possible. They dodge taxes how? BEcause they send americans to Geneva for work? The USA is in the lucky position to have the right to demand taxes from their citizens no matter where they work on the planet. I had europeans giving up their Greencard for that reason.

The dollar is same as swiss frank. But the taxes? are they not about the same. Sorry if i sound stupid, but i miss the logic here, so i`d like to have a long version for the short-wired people ;-)) thanks

I'll try to give you the Reader's Digest Version:

Most countries charge between 12 and 15% for corporate taxes. The US has been steadily increasing their rate--right now it is about 35%.

These taxes only apply if your company is "based" in the US. So one loophole (there are many mostly because the tax laws are really fouled up and overly verbose managing to be both specific and vague) is to simply open your world headquarters, with a skeleton crew as the CEOs and workforce doesn't leave, they just send enough to maintain the appearance within the law, in a country that has a more favorable tax rate and other perks.

So the our politicians, refusing to believe they are wrong, keep pushing companies out, and raising the rates on those that remain. The kicker is, the more lucrative companies can afford these moves, while the ones that can't get penalized to the point of bankruptcy.

[phatdaty]

Originally Posted by atlcomedy

The Swiss love this. . .

Apparently so does Ireland and Canada.

Come to think about it, don't cruise ship companies do this with their registry of ships all the time? I think I read somewhere that they sail under a different flag to for cheaper rates and less restrictive codes.

[Lovely Victoria]

Originally Posted by ninasastri

Can you elaborate this for me. From my knowledge i don`t understand how this is possible. They dodge taxes how? BEcause they send americans to Geneva for work? The USA is in the lucky position to have the right to demand taxes from their citizens no matter where they work on the planet. I had europeans giving up their Greencard for that reason.

The dollar is same as swiss frank. But the taxes? are they not about the same. Sorry if i sound stupid, but i miss the logic here, so i`d like to have a long version for the short-wired people ;-)) thanks

I've not seen this 60 Minutes segment, but my guess would be that having a Swiss headquarter allows these Texas companies to shift their profits out of the U.S. and into Swiss. I'm sure they still pay taxes on their effectively connected income in the U.S., but they are probably arguing that a good chunk of their profit was generated in their head office.

What is the corporate tax rate in Swiss btw?

[Marcus Aurelius]

Vickie!!!!

[discreetgent]

Vickie?

[Marcus Aurelius]

:P

[phatdaty]

Damn, did a supermoderator just hijack my thread and go off topic?

LOL!