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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.
Another great example of Trump common sense. Now make inversions illegal and make work requirements for Medicaid mandatory. #MAGA
The Tax Change Introduced by Trump that Aims to Lure Intellectual Property Back to the US Is Actually A Bad Thing. Here's Why.
so now more IP / patent trolls in the usa!
It is a bad thing, because it's just another tax break for companies that are already evading taxes, and it won't actually bring anything back into the US.
Apple, Returning Overseas Cash, to Pay $38 Billion Tax Bill
Intellectual property aka the knowledge about how to build something that you may or may not have a patent on is not technically transferable. What is transferable are the patents, copyrights, trademarks and any other rights to use the intellectual property. This article is really mincing words. No matter how you spin it, we are talking about repatriating money (assets of monetary value is you prefer) that is held abroad in foreign countries. We've been talking about it for years now. Whether it has something to do with intellectual property, subscriptions, licenses, patents, etc. is of no real interest. That's just partitioning the pile of money into categories. I don't care about that. What I care about are large sums of money sitting in a foreign country and there being no compelling reason for the holder of said funds to repatriate it to the United States to be used for the benefit of our country. We all know the primary reason that money isn't more frequently repatriated and that's because of prohibitive taxes on the money when it is transferred. No matter what your principles are or how much of a bunch greedy sacks of crap the 86% that holds 1% of the wealth is, lowering corporate taxes and tax holidays DO IN FACT make it more worth their consideration to repatriate the taxes. But we already know this and it's already be discussed ad nauseum on slashdot, why are we talking about it AGAIN?
We'll make great pets
The ONLY President in US history to never see 3% growth in the US economy in any year of his term..
If you're pulling out simplistic numbers, then clearly the answer is raising taxes.
What's "pulled out" about the fact that the US never saw 3% annual growth under Obama - the only President that never had that? Even Jimmy Fucking Carter managed to get over that bar - it's not that hard.
Obama spent his entire Presidency talking about "remaking the US economy" - meaning along "progressive"/redistributionist lines. He waged a "war on coal" and threw every effort he could to stop fracking. He lived in a pie-in-the-sky world powered by solar, wind, and unicorn farts. It's no surprise employment, wages, and the entire US economy stagnated under his lead - he'd never been in charge of even a two-person 7-11 shift in his entire life.
Given stated economic goals are just about the same as those Hugo Chavez implemented for Venezuela that resulted in an utter, deadly train-wreck of an economy it's probably a good thing Obama was incompetent in getting things done.
Hell, that's a lot more relevant than your bullshit with what? A 0.06 correlation coefficient?
Why can't we just have it simple. You get taxed where you make the money... period. This includes intellectual property. Time to set right the tax laws and base everything on the location of the consumer.
Every country can decide what their tax rules will be. For instance I am partial to one tax rate for income and another for taking money out of a country.
That is exactly what 99% of all countries do. Even down to the personal level. You pay taxes where you earn your income, end of story. The US, however, wants a share of ALL your worldwide income, regardless of where you made it - or even if you are in the US at all. So you get the proliferation of overseas subsidiaries as legally separate entities as a maneuver to avoid double-taxation (yes, the US gives you credit for overseas taxes paid, but only up to a point - and then you get to pay overseas AND US income taxes on everything above, and the limits are pretty low...)
Browsing at +1 - no ACs, I ignore their posts. So refreshing!
For two reasons. First, they're regressive. e.g. they punish the poor and reward the wealthy. I've heard various schemes to 'fix' this that always end with a system just as complex and full of holes as progressive taxation.
But second, progressive taxes, when properly applied, serve as a check on out of control wealth inequality. Remember, past a certain point money is power, not wealth. That point is around where you can no longer spend it on any conceivable luxury. Where the only thing left to spend your money on is bending people to your will & whims. Progressive taxes can and should be used to prevent this, because otherwise you end up with oligarchy, aristocracy, and the kind of rampant conservatism that lead to the Dark Ages (e.g. no progress as the wealthy block it to maintain their favorable status quo).
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