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Politics : Don't Blame Me, I Voted For Kerry -- Ignore unavailable to you. Want to Upgrade?

To: ChinuSFO who wrote (10145)	3/27/2004 3:26:32 PM
From: Peter O'Brien	Read Replies (1) \| Respond to of 81568

You are missing the point that most foreign countries DO NOT tax their companies on their foreign-based profit. Only the U.S. does. The "tax break" that Kerry is proposing to repeal was itself an attempt to try and equalize the playing field between the U.S. tax code and the tax code of foreign countries (i.e., at least the U.S.-based companies could DEFER the tax on their foreign profits). However, if Kerry repeals this provision, it will have exactly the opposite of his intended effect. It will ACCELERATE the trend of U.S. companies to change their incorporation status to a different country. If a company becomes foreign-based (instead of U.S.-based), then the U.S. can only tax that company's profit from its U.S. operations. The U.S. would be unable to tax that company's non-U.S.-based profits at all, and there is nothing Kerry could do about it.

To: ChinuSFO who wrote (10145)	3/28/2004 7:42:20 AM
From: tonto	Respond to of 81568

What I have yet to read is anything that supports Kerry's initiative that US corps will change directions. I do see that once again Kerry is going to raise taxes and has come up with a spin on it. The difference is nominal...the labor savings and benefits savings are so strong that the tax issue will not affect their decision to go to a more profitable location to enable them to compete globally. If a candidate would make is easier to do business in the US, reduce benefit costs, then you would see a reaction to a plan.