Purpose of any Company is Profits - screw the workers

[Clodfobble]

Originally Posted by classicman

All I was saying is that they can incorporate the company overseas. Nothing really changes but the paperwork and the tax liability. I don't profess to be an expert. That is why I posed the question in the first place. I'm not talking about outsourcing jobs, just the tax liability, so to speak.

No worries, I was only getting kind of ranty at Steve Ballmer (who I happen to think is a tool,) not you.

Originally Posted by TheMercenary

All they need to do is move the headquaters and re-flag the company. Any aspect of the company could still remain here.

Why haven't they already done it?

[TheMercenary]

Originally Posted by Clodfobble

Why haven't they already done it?

My guess would be that it has not become financially painful enough yet. But I have no doubt that when it does they will move.

[classicman]

Originally Posted by TheMercenary

My guess would be that it has not become financially painful enough yet. But I have no doubt that when it does they will move.

...and then the taxes received from those business will, instead of increasing with the raised tax rate, will become virtually zero. After which the liability of the companies remaining becomes even greater and their rates increase further and the cycle continues - hypothetically.

[tw]

Originally Posted by TheMercenary

My guess would be that it has not become financially painful enough yet.

Reality - over 50% of American companies pay no taxes including some of the largest. These 'we will move if taxes increase' is not the threat. Taxes are higher in other countries where they might want to relocate.

The reason for moving is most often to avoid US laws such as bribery. To permit corruption and to even diminish shareholder control is more often a reason to move overseas. American corporate taxes are some of the lowest in the world once we add all the exemptions and other 'secret' benefits.