02-26-2015, 03:04 PM
(This post was last modified: 02-26-2015, 03:45 PM by Roadmap2Retire.)
As I read another article on offshore cash parking and avoiding US taxes (this time, Gilead), I cant help but wonder why the US government thinks that it has the right to tax worldwide income. A government should only tax what a company earns in that country. Personally I find it annoying when the media reports "the US government is losing..." or "the corporations are using a loophole..."
I realize that its been the system in the US and I hear this even from individuals as well, not just corporations. I have friends who are dual citizens (Canadian and US) and apparently it doesnt matter if you havent lived in the US for decades - you still have to file taxes there as long as you are citizen. Some have resorted to, or atleast considering, simply giving up their US citizenship.
It is no wonder that companies have resorted to tax inversions (like Medtronic) and/or simply moving their HQ to other countries (like Burger King). The US marketplace is something that companies will not necessarily leave, as it is the most lucrative market in the world, but unless there is an overhaul in the tax system, we will keep seeing these stories of cash parked overseas.
/rant
I realize that its been the system in the US and I hear this even from individuals as well, not just corporations. I have friends who are dual citizens (Canadian and US) and apparently it doesnt matter if you havent lived in the US for decades - you still have to file taxes there as long as you are citizen. Some have resorted to, or atleast considering, simply giving up their US citizenship.
It is no wonder that companies have resorted to tax inversions (like Medtronic) and/or simply moving their HQ to other countries (like Burger King). The US marketplace is something that companies will not necessarily leave, as it is the most lucrative market in the world, but unless there is an overhaul in the tax system, we will keep seeing these stories of cash parked overseas.
/rant