Trump's Speech

[igor555]

looks like folks are confused here…read this

https://www.forbes.com/sites/anthonynitti/2017/01/26/the-border-adjustment-tax-for-dummies-who-will-pay-for-the-wall/#429ca7042143

[higgmond]

@ohai

I think that US should just cut corporate taxes. If it’s true that US companies are paying almost no taxes to the US, but are presumably paying taxes to some other countries, then it makes sense to provide a more competitive environment to compete for those tax revenues. Clearly, the current approach has not been effective.

This is a concept many folks are either unable to unwilling to understand. I remember a few years ago when a lot of people were complaining that GE paid no taxes. While it was true that they effectively paid no federal income tax in the US that year, they paid more than a $1 billion in income taxes to foreign countries with lower rates. The US got 40% of nothing, while other countries got 15% - 20% of billions. Have a competitive corporate rate in the US and there’s no reason to jump through all the hoops of setting up dozens of overseas holding companies to minimize worldwide taxes. I’d rather we got 15% of something instead of 40% of nothing.