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

Welcome to our community

Be a part of something great, join today!

Register Log in
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.
 
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.
 
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.
 
MarAzul said:
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.
Click to expand...

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?
 
From the NY Times, planted in a Wikipedia article

31economist-bartlett2-blog480.jpg
 
MarAzul said:
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.
Click to expand...

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.
 
Only one person does that. Are you saying I'm secretly NewsSource?
 
jlprk said:
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.
Click to expand...

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

I'll reserve a tree for you to hug.
 
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?
 
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.
 
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.
 
riverman said:
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.
Click to expand...

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.
 
MarAzul said:
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.
Click to expand...

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
 
barfo said:
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
Click to expand...
It's called MarAzul's ark
 
Minstrel said:
The Laffer Curve and the MarAzul Arc.
Click to expand...

MarAzul fify

Using the tax rates to influence the number of tax payers paying instead of sucking would influence the hell out of the Laffer Arc, don't you agree?
 
US_TAXGDP1210.gif


As corporate income tax revenues have fallen as a % of GDP, the half of employment taxes they pay has gone way up, making up for most of it.
 
Denny Crane said:
US_TAXGDP1210.gif


As corporate income tax revenues have fallen as a % of GDP, the half of employment taxes they pay has gone way up, making up for most of it.
Click to expand...

Interesting to see the years of individual income taxes of up to 70% through the 60 and 70s didn't produce any increased revenue over the much lower taxes since then. They were even high prior to the 60s and even less revenue.
 
You must log in or register to reply here.

Similar threads

BigGameDamian
OT Mark Cuban Says He's 'Considering' Running for President but Isn't Committed
2
Replies
34
Views
3K
BlazerDuckSeahawkFan94
B
speeds
Mark Cuban charged with insider trading
Replies
1
Views
236
Anima
Anima
BigGameDamian
Politics Mark Cuban: If I had to start a side hustle now to make extra money, this is what I'd do
Replies
14
Views
612
riverman
riverman
LAZY
Get to know Mark Cuban, the real facts
Replies
28
Views
1K
Illosophee
Illosophee
BigGameDamian
If Amazon buys Nordstrom and AMC it could reach a trillion before Apple
Replies
13
Views
1K
Orion Bailey
Orion Bailey

Users who are viewing this thread

Total: 1 (members: 0, guests: 1)
Back
Top