Some help understanding a part of the proposed deficit reduction plan, please?

[Lone_Star_Dem]

to be specific, this part:

Establish a single corporate tax rate between 23 percent and 29 percent, raise as much
revenue as the current corporate tax system, and move to a competitive territorial tax
system.

I'm not the best with this type of lingo. From what I can tell they're planning to stop using a world wide tax system and switch to a territorial system. Which I think would end taxing money no matter where it's made and implement a switch to taxing only corporate money made within our US borders. Is that correct?

[dbonds]

1. If you are right --- WOW that is bad.

[elleng]

2. No way to know, and foolish to speculate, imo.

Governing is complex, and too many get tangled in and upset by the MANY unknowns.

[Lone_Star_Dem]

3. What has me wondering is this article from May: "Corporate CFOs call for territorial tax system"

A quartet of top corporate financial officers on Thursday called for the U.S. to move toward a system where profits made outside the United States would not be taxed.

In testimony before Congress, the chief financial officers of United Technologies Corporation, Caterpillar, Zimmer Holdings and Kimberly-Clark all called for the U.S. to move to a so-called territorial system, saying it would bring the country in line with its major trading partners and increase competitiveness.

“The current U.S. worldwide tax system imposes a significant tax on foreign earnings that are brought back to the U.S. for reinvestment here at home, discouraging job-creating domestic investment,” Mark Buthman of Kimberly-Clark said in his prepared remarks before the House Ways and Means Committee. “By eliminating this extra layer of tax, the disincentive for American companies to reinvest their foreign earnings in the U.S. would be significantly reduced.”

The comments from the corporate world came at a hearing on tax reform, an area where Treasury officials and lawmakers are currently working.

As it stands, in the U.S.'s tax system, generally speaking, all of a corporation’s profits are taxable, regardless of where they are made.

http://thehill.com/blogs/on-the-money/domestic-taxes/160807-corporate-cfos-call-for-territorial-tax-system

Perhaps this example will help to clarify my question a bit more.

[elleng]

6. Thanks; it does. Sounds like a bad idea,

and not surprising CFOs support it; its their job.

[Lone_Star_Dem]

11. I fail to see what this is doing in a debt reduction proposal

I can't see how implementing what amounts to a tax break for American corporations to take their business out of this country, could help generate revenue in this country. Which is what it appears they're proposing.

[elleng]

12. I think the 'big' proposal is not debt reduction,

but system-rationalization. Intention to encourage jobs in this country.

LOTS of issues in the air.

[Lone_Star_Dem]

15. Yet it's all tied into the debt reduction in order to raise the debt ceiling

What there is lots of is smoke in the air.

For the GOP to imply not taxing the corporations on money made overseas is a job creator in the US, is something we should be taking them to task on. It's a page, no a whole chapter, from the "Trickle Down Economics" book. Which has been proven to ineffective in creating sustainable jobs which produce wages high enough to support our consumer based economy. In other words it's three steps back if we let this pass.

[marions ghost]

4. We should not worry our little heads then?

Just wait for it to roll over us?

[elleng]

5. Your head particularly little, ghost, or do you often worry

without understanding what you're worrying about?

There are undefined terms in the OP, and I won't address them until I understand them.

[marions ghost]

8. My head is particularly little?

or is it just that your head is particularly BIG? :shrug:

My senses tell me there's plenty to worry about, and I am here to find out more. My little head that worries is ALWAYS correct.

But...you say I should insert head in sand? (I believe I read you correctly but correct me if not).

[elleng]

9. No, I did not suggest you insert your head in the sand,

just wait and/or look for info upon which to base worry and action. Original poster explained meaning, and I posted my agreement that it sounds bad.

I asked about your 'little' head because you mentioned it in response to my earlier post.

[marions ghost]

10. I will wait for the August Wisdom

that I am sure you can provide at the proper time then.

But don't forget...

[elleng]

13. Do you practice being a condescending a*******, or does it come naturally?

:thumbsdown:

[marions ghost]

17. uncalled for

:thumbsdown: :-(

:hi:

[jtown1123]

7. Umm really? There is much unknown about this plan? It's Bowles Simpson all over again

http://assets.nationaljournal.com/pdf/071911ConradBudgetExecutiveSummary.pdf

[WinkyDink]

14. In such a context, "competitive" always means "favors to business."

[Lone_Star_Dem]

16. Yes, isn't that always the case.

What I'm worried about is if this is a give away to to US corporations to remove even more business and jobs from the US. Which on the surface is what it appears to be to me.