U.S. Corporations seeking tax relief by leaving U.S.
A quick glance at the increased tax revenue from U.S. corporate taxes.
My understanding is that the White House projects 332.7 billion dollars from
corporate income taxes in 2014. (20% more than last year?)
And a projected 528 billion dollars in 2017.
Is this why we are starting to see U.S. companies relocating their
corporate headquarters out of America? (Inversion)
Most recently, Walgreen’s is considering Switzerland as a new home.
Halliburton must have gotten a heads up several years ago (2007) as they set
up shop in Dubai… No give-back to the U.S. even though they make billions off of
defense contracts ??
Also, I suspect that Corporate America is forecasting more government predatory
practices on their organizations — In the form of taxes and increased regulation.
I would venture to guess, that the elephant in the room being quietly discussed in boardrooms
across the nation is the fear of Nationalism. The Government taking over private Corporations.
(“You didn’t build that”)
My layman’s projection is — two possible scenarios.
(1.) Should they leave?
The CEO’s are starting to realize that the increased welfare state has progressed to the point of no return.
In the future the Government will have to generate trillions of more dollars in revenue to keep the nation afloat.
How do they accomplish that? — Does the government have to own and operate EVERYTHING ??
— we all know what kind of Government structure does that.
Will it be necessary for Government to levy much higher corporate and individual income taxes?
So, are the corporations going to look for strategies to save the continuity of their organizations
and leave the U.S.?
(2.) Should they stay?
There is the possibility that they could pay higher taxes and still increase profits while remaining private industries
in the U.S. — that would be to have a massive workforce getting minimum wages.
The uncontrolled influx of multi-millions of immigrants overloading the population base will supply that need.
This might encourage repatriation of U.S. manufacturing and foreign corporations relocating to the
U.S. — We will have an unlimited cheap labor force willing to work for minimum wages with no corporate benefits.
The Government will derive increased corporate tax revenue from this scenario.
The upper 1.0% climb to the upper 0.5%.
The two hypothetical scenarios above do not bode well for the soon to be extinct American Middle Class.
You will have to have exceptional entrepreneurial abilities to succeed in the newly transformed America.
A caveat to individuals.
We will still be tax targets — it might take the esoteric form of limitation and/or elimination
of tax deductions — this is already taking place.
No place to run and no place to hide as the U.S. claims taxing authority on American citizens
Those astute High Wealth American Citizens that have the most to lose are concerned
about confiscation of wealth and are starting to give up their citizenship and leave the country.
(Sad but true — this has been increasing over the past few years).
The U.S. has changed tax regulations setting up barriers to exit and extending taxing authority
— alternate tax scheme for expatriated individuals.
They have lowered the de-minimus level to lower levels of personal wealth to include the lower
What does that signal?… more changes to come? … more stringent capital controls?Click here for reuse options!
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