Relatively speaking, as things go in the long history of the world, income tax is a fairly new concept, only a century or so old.

For thousands of years, taxes were a portion of accumulated assets, usually liquid assets, but sometimes total assets. Maybe it's time to rethink our entire tax structure and methodology. An annual 5% levy on corporations doing business in the United States, based on their worldwide liquid and (non-primary-business) invested assets, would fix up a lot of this tax-dodging

The issue here isn't about sales taxes due in one state or country, but about profit. Simply by holding their profit in an offshore bank account a company can indefinitely avoid paying American corporate taxes on it. A company that manufactures overseas can effectively shield all their profit except what's needed to pay the executives here. It's a loophole that needs to be closed.

What I find strange is that people actually argue the negative on this. Huge corporations and rich people with shell "companies" are using these loopholes to avoid paying the taxes which small businesses here face. As a question of basic fairness every corporation should have to play by the same rules. Plus, if the corporations paid their taxes we'd get stuff like money for education and freeways so we don't have to keep passing bonds.

Also @2 most money is "double taxed". Washington companies pay both B&O taxes on gross receipts and federal taxes on profits. Your paycheck will show taxes for federal income tax as well as social security and medicare. And then when you spend that money you'll pay sales tax as well.

Topic 559 - Net Investment Income Tax

A new Net Investment Income Tax is effective beginning January 1, 2013. The 3.8 percent Net Investment Income Tax applies to individuals, estates and trusts that have certain investment income above applicable threshold amounts.

http://www.irs.gov/taxtopics/tc559.html

Just add 0.5 on top, WA state.

…and cue the GOP arguing that there should be a tax holiday so they can bring the money home. tax free of course, because corporations are people. special people. who don't have to pay taxes because they're rich.

Funny. American workers overseas have to pay income tax from the first dollar. Sucks having crummy lobbyists.

@6 The same political doctrine that opposes one-time amnesty for illegal immigrants as merely encouraging future illegal activity promotes one-time tax amnesty as a way to allow corporations to come out of the shadows.

What do they do with that money overseas? Invest it in some way?

The worst thing wouldn't be that it isn't taxed, the worst thing would be if those profits just stagnated in overseas accounts and weren't being put to some productive use.

#9

Yes, thank you. That is my question.

Just saying it's "overseas" is meaningless.

Is it in a bank? An investment firm? One with global interests? Then doesn't it simply flow all over the world to wherever there is business activity.

The initial criticisms of finance by the left are warranted, but it seems like they've stopped short and now simply have gone back to their old salve of "corporations are bad" instead of really following the money.

Hey guys! I've suddenly thought of a great solution to solving the Metro Bus budget problems! And in fact, all the transit problems in the entire country! And poverty! With cash like that available, we could institute the Basic Minimum Income for everyone! No more economic sadomasochism.

@9,

I don't know about that money specifically, but U.S. corporations are sitting on a ton of capital that they refuse to invest. Last I heard, it was enough to employ every unemployed American (according to the official count) for a quarter million in salary.

A company like Microsoft does a lot of business (and employees a lot of workers) overseas. I don't see a compelling reason that that money should be taxable in the US before it comes over - If I paid my Mexican cousin to start a food truck in Mexico City, I wouldn't think that his profits would be taxable in the US unless that money were sen't back to me.

@8, nicely done, and worth repeating.