Senate candidates disagree on taxing overseas profits

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ATLANTA — When it comes to taxing profits U.S. corporations earn overseas, Michelle Nunn and David Perdue disagree.

For voters concerned about jobs, the candidates offer a clear choice because of their different approaches to this one tax issue.

Nunn, the Democratic Senate nominee, says profits earned abroad should be taxed and that companies that avoid it are taking advantage of a loophole that needs to be closed.

Perdue, her Republican opponent, believes companies shouldn’t have to face a tax in the first place because no other country taxes overseas profits. He argues that removing the tax would give companies the incentive to use an estimated $2 trillion in ready cash sitting idle in foreign banks to invest in American job creation.

Both campaigns were asked about a statement President Obama made about companies that use tax inversion in which they buy a small, foreign firm and designate it as their “headquarters” to avoid owing income taxes. Obama said the process should be illegal because multinationals are evading a moral obligation.

Republicans have generally noted that companies have a responsibility to shareholders to minimize expenses and are free to use any legal mechanism. Democrats see the tactic as a domestic job killer.

“Throughout this campaign Michelle has called for comprehensive, revenue-neutral tax reform that ends this kind of practice while creating a tax code that is simple, fair, and fuels economic growth,” said Nunn’s spokesman Nathan Click.
Perdue spokesman Derrick Dickey stresses that the companies wouldn’t have a reason to consider inversions if there were no tax.

“The United States has a punitive tax structure, including the highest corporate tax rate in the world, which puts American companies at a tremendous competitive disadvantage,” Dickey said. “David believes in tax reform that would attract profits currently trapped overseas back to America for investment and job creation here at home.”

When both call for tax reform, it means different things.

Nunn also wants to disallow corporate tax deductions for expenses incurred in
closing plants to transfer production to other countries. She is with other Democrats who say those companies would save American jobs if corporations couldn’t use those.

Perdue is focused on rate reductions. He joined conservatives in support of the Fair Tax, a national sales tax to replace income taxes, personal and corporate.

Libertarian nominee Amanda Swafford sees Fair Tax as a salvation.

“The proper response isn’t to ban inversions but to either enact the Fair Tax or move to a territorial system so companies can stay headquartered in America without facing a ridiculous tax surcharge on money made outside our country,” she said.

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wribbs
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wribbs 08/07/14 - 05:41 am
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I think we should tax all

I think we should tax all companies out of existence. These evil corporations are ruining this world; making us work for them like slaves. Obama knows what's best for us and will provide whatever he and Michelle determine is good and natural.

Let's vote Nunn in the senate so she can help Obama and Michelle finish what they've started!

nocnoc
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nocnoc 08/07/14 - 06:24 pm
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Perdue on logical business ground, while Nunn Dances with Obama.

Remember that nasty word JOBS?
Given a Liberals near total lack of understanding about Real World Commercial JOBS, it is no wonder that Ms. Nunn is dancing with Obama on this one.

Here are some facts She & other Liberals fail mention.

1st,
The US Government, unlike other countries, taxes a US HQ based company’s income, no matter where on the world that company is located. This mean American companies are paying Federal taxes and each country they are doing business in.
That is Double Taxation

2nd,
The US Corporate tax rate is around 35%. Either highest or tie now as the highest of all industrial countries .

3rd,
Liberal Democrats and OBAMA have called U.S. companies some nasty names, and as Flo would say SURPRISE!.
For a business to stay in business and EMPLOYE PEOPLE it needs to make a profit, so there is a logical need to reduce operational costs. So LEGALLY avoiding the double-taxation to stay profitable and continue to EMPLOY US citizens is a result of this process. But naturally it boils down the LIBERALS facing a DEBT CEILING, need more tax money in order to spend more.

4th
But we also need to Face the fact,
BOTH PARTIES have refused to deal with the real reason, so many firms are moving abroad. TAXES and REALLY SCREWED UP TAX CODE.

Remember Business DOES NOT REALLY PAY TAXES
YOU pay the tax for them. Because every time you purchase what they sell, the companies have already added the cost in to the product price, that you buy.

SO HOW DOES ALL THIS AFFECT JOBS?
At some point, with NAFTA, CAFTA and other trade treaties, companies just say SCREW IT & move to cheap labor sources like China or Mexico for production. Then just bring it back across the border using NAFTA and avoid the TAX and US Labor costs all together......

ROSS PEROT was dead on about the disaster NAFTA would cause and has caused the USA Manufacturing Labor Pool.

EVEN HILLARY AGREED
http://www.youtube.com/watch?v=LRvJ-o30Sk8

nocnoc
46914
Points
nocnoc 08/07/14 - 06:24 pm
2
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wribbs - Love your style

Pointing out the truth of the process surely brings it to light.

A great demonstration of Southern Scrcasim at it best just by using their own words.

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