MARK CUBAN: If Your Company Is Moving For Tax Reasons, I'm Selling Your Stock

Discussion in 'Blazers OT Forum' started by SlyPokerDog, Jul 25, 2014.

  1. SlyPokerDog

    SlyPokerDog Woof! Staff Member Administrator

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  2. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    He makes a good point. It's funny because I was offered a company stake, but they planned to move the company to Hong Kong for tax shelter. I asked "who is there to run the business?" They explained the process in which these companies will have a phone dedicated to you and a post office box to accept your mail.

    I replied "I don't like paying taxes like the rest of you guys, but I will not do something that forces me to pay it on the back end locally"

    Also, once the money is moved to the US, you have to pay taxes on it. See apple and how they don't want to move their cash reserves into the US.
     
  3. maxiep

    maxiep RIP Dr. Jack

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    I get Cuban's thinking, but of course he's being too simplistic. Bottom line, if you have to move to keep your company solvent, then you're not a good investment.

    However, along with high taxes often comes burdensome regulation. For example, try firing someone in California without getting sued. Workers Comp alone in the Golden State is a nightmare.

    Also, if you're competing with a firm that has a lower tax structure, you're starting a step behind. Not all firms are like Cuban's Soundwave. That was a unique product that under his management was never forced to create revenue in a highly competitive environment. Now, take a look at a commodity-type business. The margins are smaller, the barriers to entry lower and the competition greater. In that environment, the level of government intrusion matters.
     
  4. MarAzul

    MarAzul LongShip

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    I agree with Cuban basically. But some changes need to be made.

    Our Corporate tax rate should not be higher than every other country.

    Then the top individual rate and the rate on investments income for the top earners should be possible lower by linking the rate to the true unemployment percentage. So that the top rate would be higher than it is now but would be lower when the unemployment percentage is 5% or less.

    The would cause the big boys to be concerned with this country and it sure would make people think twice about open boarders.
     
  5. jlprk

    jlprk The ESPN mod is insane.

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    If not for all the misspelling, I'd say you copied and pasted.

    Who told you that the U.S. corporate tax rate is higher than every other country? Your friend the boat?
     
  6. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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  7. jlprk

    jlprk The ESPN mod is insane.

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    The U.S. rate isn't flat. It ranges from 0 to 39%, with nobody paying the full 39%. Sort it and we rank as one of the lowest.

    http://en.wikipedia.org/wiki/Tax_rates_around_the_world#List

    Look at all the countries with a flat corporate tax. Japan is 38.01%, Cameroon is 38.5%, several are 35%, etc.
     
  8. jlprk

    jlprk The ESPN mod is insane.

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    From the NY Times, planted in a Wikipedia article

    [​IMG]
     
  9. jlprk

    jlprk The ESPN mod is insane.

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    Republicans say you're wrong. The rich are the job creators. Increasing their taxes will only increase, not decrease, unemployment.

    Welcome, new Democrat! Now get on your horse and burn this brand into all your neighbors' backsides.
     
  10. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    So you need to change the subject?
     
  11. jlprk

    jlprk The ESPN mod is insane.

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    Only one person does that. Are you saying I'm secretly NewsSource?
     
  12. magnifier661

    magnifier661 B-A-N-A-N-A-S!

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    I thought u were Denny
     
  13. MarAzul

    MarAzul LongShip

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    It appear you failed to read where the big boys will get a tax cut when they allocate a little cash to maybe not so high profit activity such as production of mundane items, so they can put some unemployed back to work. But then, just moving the illegals out would change the picture drastically. Might have to raise a wage here and there but reward in view.

    Modified behavior, tax cut reward.
     
    Last edited: Jul 26, 2014
  14. jlprk

    jlprk The ESPN mod is insane.

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    Reward and penalty for the rich? Welcome to the Party!

    I'll reserve a tree for you to hug.
     
  15. jlprk

    jlprk The ESPN mod is insane.

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    Okay Denny. I'll let you win one. It's .5% higher than Cameroon.

    [video=youtube;czKKdiZEfCY]http://www.youtube.com/watch?v=czKKdiZEfCY[/video]
     
  16. BlazerCaravan

    BlazerCaravan Hug a Bigot... to Death

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    From Denny's link: "Loopholes and other special treatment for different kinds of businesses mean that businesses pay an effective rate of only 29.2% of their income, which puts the United States below the average of 31.9% among other major economies, according to analysis by the Treasury Department."

    So why even bring up the "highest corporate tax evar!" when it's obviously just a number like MSRP, and nobody pays full price on it?
     
  17. Denny Crane

    Denny Crane It's not even loaded! Staff Member Administrator

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    Special treatment is the government's way of coercing companies to do things government would otherwise do.

    Those tax rates do not include state taxes, either. Or telephone tax, or property tax or ... You get the idea.
     
  18. riverman

    riverman Writing Team

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    This is a fascinating topic. My question is basically do we have a young labor force that's even willing to work in a factory stateside? I sure haven't seen evidence of it in Oregon. The factory my wife worked in years ago was stacked with immigrant labor and it was hard to find an english speaking American in the crowd. Lots of pot farmers here though they don't pay taxes. Also a lot of middle aged citizens on disability after eating themselves into diabetic obesity. The cost of living stateside doesn't really encourage a working class that can save money or buy a house, go to college. The system is broken from my view. I moved overseas and worked 20 years with the ability to make 72K a year tax free, save most of it, then come home and buy a house while investing money and living moderately well. Would have been much harder to do if I'd stayed in the Oregon work force for those years.
     
  19. MarAzul

    MarAzul LongShip

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    You nailed it sir. People need to think about what they ask to receive. This soak the rich mind set is short sighted. It's likely to bite your ass. You worked overseas near tax free, I recall the day during the Carter years of earning about 75k a year, pretty good back then, but it put me in the 67% Federal tax bracket. Add fica and State, and self employment taxes to it, simply income confiscation. That will chase you some where else.
    Thank you Ronald Reagan for fixing this abuse. But you hear so many that advocate a return of confiscatory taxation again. Blindly mindless.
     
  20. barfo

    barfo triggered obsessive commie pinko Staff Member Global Moderator

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    And yet you apparently stayed in this country and did well enough to build a giant boat. So maybe the tax rates didn't destroy you after all...

    barfo
     

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