US Government To Extort Only 14% From Overseas Corporations In Rare Limited Time Offer

[The following post is by TDV Chief Editor, Jeff Berwick]

Some are heralding a possible “tax holiday” for overseas US corporations proposed by Barack O'bomber. The reality is many companies have found a way to arbitrage the tax code and create their own personalized tax holiday year-round thanks to clever planning, so they likely won't be repatriating their funds.

So what does the Lameduck King want?

In a one-time charge, just 14% of foreign earnings of US corporations will be stolen, with the extorted funds officially going to infrastructure investments around the country. This money will most likely go towards building prisons to house Americans. Sounds like a deal! Unfortunately, this plan won't be enough to repatriate money.  Here's why…

The biggest US corporations, according to Citizens for Tax Justice, found that the effective corporate tax rate is just below 20 percent for the 288 largest profitable American companies.  They're already getting a deal… And good for them! Their hardwork deserves to be rewarded.

According to some analyses, many profitable companies pay zero percent US income tax rates, which should be every individual's ultimate goal when it comes to financial planning: paying no taxes.

I am totally in favor of tech giants Apple and Google protecting hundreds of billions in revenue from the taxation of brutal governments. In fact, I believe these companies do all of humanity a service when they game the rules of the extortion system and take money out of the state coffers, and ultimately out of the pockets of corrupt politicians and their cronies.

Thank the lord for companies like Caterpillar, which decided to spend $50 million on a scheme to route profits through Switzerland and out of the hands of IRS thieves. They should keep their $2 trillion, and so they do.

The mainstream press knows this and has caught on to the fact that Obama’s planned tax holiday won’t work because these corporations are already paying a lower rate on their taxes through the sorts of responsible financial plannings provided at TDV Offshore. The mainstream media would like you to believe that these companies are stealing from YOU, the "taxpayer", but really all they are doing is preventing the destructive US government from using their earnings to do evil around the world, killing people you've never met and who have done you no harm.

The US has one choice to bring much of these profits back: eliminate all income taxes. This is the only way to truly ensure that hundreds of billions in US profit currently sent overseas actually stays in the US.

Until then, the US will suffer through the capital drain that has accelerated in the 21st century and especially in the wake of the 2008 financial crisis. Burger King caught slack from the media over its tax inversion merger with Canadian brand Tim Horton’s, but the iconic fast food chain never even looked back, and nor should they have. They weren't the first, and they aren't the last.

Taxation is theft. There is no way around it. Aiden Gregg and I spoke about it in this episode of Anarchast, where we beefed up this argument.

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