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“The Seventeen Solutions” author Ralph Nader on companies keeping much of their money overseas to avoid the tax costs of bringing it to America.
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-- to -- the tactic many companies.
Are trying to take their money and his running huge farms are.
According -- overseas now to avoid.
But the top taxes the better going up here Ralph Nader a big critic of the raises and especially move like this rob what do you think it is it really regardless of point of view is and it's shocking given.
What they're facing.
As.
Well as we're going -- a long time -- there's always have been transfer pricing by these US corporations where they.
Build up their expenses in the US and they stash your cash overseas sometimes in countries that have.
A significant -- -- rates which they can deduct if they bring the money back home against the US taxes.
A lot of times in these bahama type.
Tax havens.
So there's nothing new about this it's also another way when they stash far more cash overseas and as a proportion of their profits here compared to overseas.
They don't have to send the money back to their owners in terms of higher dividends.
Florida but but that's another store where their their their -- You know raising dividends right now -- it to beat the taxman.
That on for another that's another issue here right but I I -- say that's that.
Money chases that seat this market ride and not dig now taxes are getting to the point in this country of that that -- will be the highest in the industrialized world.
So corporations that didn't of those MBAs for coloring books write an in date date date date they seek out those those safer -- -- and.
-- let me just put it this way the explanations in this book and if you read this book -- conscience and no one sells their -- matter continuing.
-- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- -- The the incentive to keep cash abroad.
Is not just the tax havens is to avoid.
The kinda it's to invest abroad you know they're expanding in markets and -- money has not been well I don't know there's nothing wrong with a no that's fine.
But it's -- really.
To escape America because the proportion like if they have 50% of their profits here that they have 80%.
A cash overseas so it's disproportional.
And it's a matter patriotism.
It's a matter of Colorado.
They can't -- 3% of their -- -- -- I do bibles say -- up by your reckoning that.
Let's Starbucks which has is -- -- writing success and every other block the United States when it branches out to England where they -- tax and held by the way.
I'll order France -- to Asia that it is that wrong.
There's nothing wrong and I know if there weren't invented shut down -- US shops.
No that's true.
The main thing is.
Where they basically abandoned the their commitment to this country because this is where they get there are indeed this is where they rose to -- this -- where there were born.
This is where -- communities are the issue of corporate patriotism emerges.
Yeah but then they're you know I.
I travel a lot you -- -- a lot I travel all over the world.
I always love America when I do.
But I like troubling I see the world these companies expanded -- -- -- new markets they like their home base because the home base provides the Jews and impetus for them -- stand.
The way they are why is that and -- NAFTA.
But for success.
If they overdo it that is if they stack their expenses in the US.
And put a higher proportion.
-- will look and don't give.
We're partly chasing them away and where we're we're we're getting a very little incentive to stay here and -- may be loyal patriotic while we're screwing into the wall.
Because these are tax havens that are just -- you know.
Or Caprio and that I know what does that dedicate an island the Bahamas and all that and you know those are expressing gay because -- -- haven't been there as against going -- because.
If you -- to pick out -- beautifully even.
But my point -- drop on all of this is that.
Look these are would be exceptions of the rule a lot of -- they do have their money if they do levels to -- people here.
They're trying to expand but in this environment -- very little reason.
So look at the promising US what's attracting money did the places like Switzerland -- is that it is not.
Inhibiting.
Capital formation and growth we are this is something that has been developing under -- -- democratic residents alike -- rules and regulations resides.
It is gotten to be a very.
Unfriendly environment today.
That's on -- First of all.
The tax rate the real tax rate for these large corporations.
Especially minimal pay no federal income tax on US Roberts is 17%.
It's not 35% -- not 30%.
That's the effective tax rate.
-- -- all the -- I know we see candidates are what's the real -- a lot of these countries you -- you know the real tax rate in Japan now the little north of 13%.
So we look back and forth on this what do people really -- -- the trend is up here there are a lot of countries where it's reversing or at least slowing there.
And and and that is Stuart businessman wouldn't it would stand a good reason to expect.
That -- lower the bar here.
Let's expect that the US corporations -- privileges they've been given over the years in public services at least keep this much money here.
As is -- presented their -- they're doing nothing here you act like they're just sort of indentured servants who are doing the throat of the -- They're hiring people they're growing here they're there they they've done a lot here and -- -- to use their lives you know to auriemma you have.
As we've talked before deal they have they're sitting on two trillion dollars in cash non financial corporations like general -- -- -- -- there are no taxes.
Give it back.
To the dividend owners give it more to the then they will spend more money and -- -- and Hillary it's okay.
It won't be tax -- -- that would be a fine idea they would take it and -- New York minute right.
-- with this way.
A lot of times the IRS cannot find out what's going on its -- to transfer pricing transfer pricing can be illegal.
They don't have enough auditors to cover these sprawling global corporations -- your own Fox News.
-- made it clear and something that I looked at data today.
That is a far higher cash -- abroad.
Then is reflected in terms of the profits here and abroad for big companies like Cisco like EMC.
And that enlightened -- up a lot of this over the last eighteen months -- -- the prospect of rates going about it.
I don't think this is rocket science -- Well look let's let's open this up the best way to deal in this fiscal cliff.
Is to get revenues on things we don't like -- -- on Wall Street speculation tax.
And attack attacks getting rid of corporate welfare.
And pour -- into community public works renovation.
All over the country but it creates jobs that cannot be exported to China.
It's amazing that congress even -- -- guys don't get that connection if you're gonna get more taxes from the wealthy and the corporate non taxpayers like Verizon NG.
The net -- and -- Wall Street speculation -- derivatives at least put it back into the community that is the best hello way.
-- that that they can stimulate the economy.
I love you so much for it was had more time does is yell at you but I I wanna get it back could -- success in your -- my friend.
Are well -- -- interview when we.
