Posted:
#101
Quote Originally Posted by Invictus28:
JakeC
JakeC
I hear ya on the corp tax rate. Should be lowered and loopholes closed. Seems simple enough. Also, need stiffer penalties for corps who send jobs overseas. Make it very very expensive to hire non-americans (in most circumstsnces.)
Also you are correct. Delaware is a joke when it comes to corps. And they don't need much of a physical presence there to take advantage of tax breaks. I think all you really need is a room the size of a closet. Or a PO BOX at a Delaware post office. Something crazy like that.
Also, it's funny you mentioned the NFL. I just heard about that last week. That is some MAJOR bs.
I don't think we should penalize companies that send jobs overseas. The whole problem is that an American worker isn't willing to accept the wage rate that an Asian or Eastern European is more than willing to take, it's basic competition. The jobs we lose overseas are mostly basic manufacturing jobs which don't command a livable wage in the US. If we were to penalize companies for shipping jobs overseas and companies brought those jobs back it would instantly increase the cost of many basic goods. If we were a more frugal society with lower taxes then it could work though.
I thought the point of incorporating in Delaware is that they don't have a state corporate tax for income earned outside of the state? That means companies in Delaware are only subject to the federal corporate income tax. Correct me if I'm wrong about this. I also believe that Delaware is considered to have the most developed bankruptcy court system in the country. And that's funny you mentioned that companies only need a closet as their office in Delaware. I remember a 60 Minutes or some other program investing this. They went to offices of multi-nationals listed in Delaware and when they got into the office the only person there was a secretary. The secretary always said "XX manager/executive" is out of town and didn't know when they would be back.
I also just read, in regards to the credit card companies all in Delaware, is that they have very relaxed rules relating to charging interest so I guess that makes sense.
