Obama Planning to Close Loophole...

[firehawk157]

Link (http://news.yahoo.com/s/ap/20090504/ap_on_bi_ge/us_obama_taxes)

I'm interested in some of the details of this. I think it COULD be good if he can manage to get rid of companies dumping massive amounts of cash into offshore bank accounts to essentially evade taxes. However, I'm worried about companies expanding overseas being handicapped. Anyone have any more info on this?

[akhhorus]

From what I understand, its a modification of what the moderate wing of GOP wanted to do in 05 and 06 targeting only companies who have-essentially-fake HQs set up in places like the Bahamas and such to avoid certain taxes. Its not designed to go after expanding companies.

I think it would be better if you offered them tax breaks for repatriating that cash into the US, then taxing it at a lower rate than what they were avoiding.

[BurgundyNGold]

Link (http://news.yahoo.com/s/ap/20090504/ap_on_bi_ge/us_obama_taxes)

I'm interested in some of the details of this. I think it COULD be good if he can manage to get rid of companies dumping massive amounts of cash into offshore bank accounts to essentially evade taxes. However, I'm worried about companies expanding overseas being handicapped. Anyone have any more info on this?
We'll have to see what the details are but I don't mind what he's trying to do. BTW, just dumping cash offshore doesn't remove that revenue from your books. To get it off of your books, you'd have to "lend" it to a subsidiary in the Caymans or some other IRS unfriendly place. That company would subsequently have to "lose" that money for you to then avoid that revenue as an investment "loss". Then again, technically, that's money laundering, so I'm pretty sure that loophole has already been closed, lol.

[skinguy]

the atty's & cpa's are going to be working overtime to find other/more ways to " hide " the $ :smash:

cheers ~ ~
:sun: