Posted: 9/1/2012 4:10:56 PM EDT
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Why isn't this talked about more? This should be one of the key pillars of Romney's campaign. Even liberals can understand it.
Right now, if you have a multinational corporation, you are only taxed on the profits you make overseas if you transfer that money into America. If you keep it overseas forever in a business account, it won't be taxed. If you invest it in another country, it won't be taxed. If you decide you want to invest it in America, you have to pay a tax on it before you even get a chance to invest it. That tax can be as much as 30%! If you had a multi-national business, how would you feel with our government saying 'You can invest that $10 million in Canada, no problem, but if you want to invest here, we're going to take $2.5 million from you right away'? Other countries have figured this out. There are only 3 developed countries that still operate on this old model. We are a worldwide economy now, we can't afford to ignore the money in other countries that could be coming here. It is estimated there could be $1.7 trillion worth of money being held outside America to avoid these taxes. A territorial tax system would either eliminate this tax, or reduce it to a much smaller amount, along the lines of 1-2%. We would no longer punish corporations for investing foreign profits in America. To put it simply for libtards, our tax code allows companies to keep money overseas with no penalty. It penalizes investing that money in America. Of course, the standard libtard response is 'tax that foreign money even more!'... but independents are smarter than that, we need to reach out to them. This could literally be the easiest, most effective change to boost our economy and jobs situation that we could do. The other option would be to reduce corporate taxes(preferably to 10%, or 0%). People don't generally know this about Romney's plan... they need to know. |