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June 3 (Bloomberg) –– Microsoft Corp. Chief Executive Officer Steven Ballmer said the world’s largest software company would move some employees offshore if Congress enacts President Barack Obama’s plans to impose higher taxes on U.S. companies’ foreign profits.

“It makes U.S. jobs more expensive,” Ballmer said in an interview. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.”

Obama on May 4 proposed outlawing or restricting about $190 billion in tax breaks for offshore companies over the next decade. Such business groups as the National Foreign Trade Council, the U.S. Chamber of Commerce and the Business Roundtable have denounced the proposed overhaul.

U.S. tax rules let companies defer paying corporate rates as high as 35 percent on most types of foreign profits as long as that money remains invested overseas. Obama says he wants to end such incentives to keep foreign profits tax-deferred so that companies would invest them in the U.S.

Microsoft reported an overall effective tax rate of 26 percent for 2008 in its last annual report. “Our effective tax rates are less than the statutory tax rate due to foreign earnings taxed at lower rates,” the report said.

Barry Bosworth, an economist in Washington at the Brookings Institution research center, said many software companies such as Microsoft have exploited tax and trade rules in the U.S. and other countries to achieve a low overall tax rate.

Ireland Subsidiary

Typically, he said, a company like Microsoft develops a product like Windows in the United States and deducts those costs against U.S. income. It then transfers the technology to a subsidiary in Ireland, where corporate tax rates are lower, without charging licensing fees. The company then assigns its foreign sales to the Irish subsidiary so it doesn’t have to claim the income in the United States.

“What Microsoft wants to do is deduct the cost at a high tax rate and report the profits at a low tax rate,” Bosworth said. “Relative to where they are now, the administration’s proposals are less favorable, so there will be some rebalancing on their part.”

Ballmer is one of 10 U.S. software company executives pushing back against the tax proposals in meetings today with White House officials including Jason Furman, deputy director of the National Economic Council, and the heads of congressional committees such as House Ways and Means Committee Chairman Charles Rangel, a New York Democrat.

Expense Deductions

Among other things, Obama proposed limiting expense deductions such as those for employee compensation when companies defer U.S. tax on foreign profits.

In a roundtable discussion today, Ballmer, Symantec Corp. Chairman John Thompson and the heads of smaller companies such as privately held Bentley Systems, an Exton, Pennsylvania-based maker of engineering software, said such policies would hurt domestic investment, reduce shareholder value and increase the cost of employing U.S. workers.

Ballmer said that, while the Obama proposals would preserve expense deductions related to research and experimentation costs, the overall deduction limits for companies that defer tax on foreign profits would raise the cost of employing U.S. workers. Fiduciary responsibility to shareholders would require Microsoft to cut costs, he said, meaning many jobs would be moved out of the country.

Worldwide Employees

Microsoft employed 95,029 people worldwide as of April 21, of whom 56,552 were based in the United States, according to the company’s Web site. The company announced it was firing up to 5,000 people in January while hiring some new workers; the company has shed about 1,000 jobs since then, spokesman Lou Gellos said.

Ballmer estimated that higher taxes under the proposal would reduce profits for companies that comprise the Dow Jones Industrial Average by between 10 and 15 percentage points.

“It’s just a question of how much will the Dow come down,” Ballmer said. “It’s not about companies anyway; we’re talking about shareholders.”

In addition to limiting current deductions for companies that defer U.S. tax on their foreign profits, Obama proposed altering a set of rules known as “check the box” that allow companies to shelter foreign profits in offshore subsidiaries that can be disregarded for U.S. tax purposes.

Duck Liabilities

While the rules were designed in 1997 to protect U.S. companies from paying excessive tax to other governments, Obama administration officials say it has evolved into a way to duck U.S. liabilities. Altering the rule, which Obama dubbed a “loophole,” would generate $86.5 billion in new revenue by 2019, the administration says.

The third international tax proposal would change rules governing how companies can claim tax credits for levies paid to foreign governments. Officials say some companies abuse the rule to accelerate tax credits before they could otherwise be claimed.

Obama has said his proposals would protect or create jobs in the United States.

Thompson of Symantec, the Cupertino, California-based maker of Norton anti-virus software and similar tools, said software companies are frustrated by being called tax cheats and compared with companies that moved their headquarters to low-tax countries such as Bermuda.

‘Counterintuitive’

Thompson called the Obama proposals “counterintuitive” to the administration’s other stated goals of fostering an innovation-oriented economy.

“It is a little bit ironic that most of our most significant trading partners and partners globally have taken the tack that they’ll reduce corporate tax rates to stimulate economic growth and not raise corporate tax rates,” Thompson said.

The roundtable was organized for Bloomberg News by the Business Software Alliance, a Washington trade group coordinating the executives’ meetings with policymakers.

To contact the reporter on this story: Ryan J. Donmoyer at e-mail [email protected]
Last Updated: June 3, 2009 16:12 EDT


http://www.bloomberg.com/apps/news?pid=20601087&sid=aAKluP7yIwJY#
 

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So he's trying to force companys to bring jobs back home, Of course there going to cry foul.
 

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Discussion Starter #3
So he's trying to force companys to bring jobs back home, Of course there going to cry foul.


How do you force anyone to do anything in a county where you have the right to act on free will and your own best interest?

They will move where it makes sense for them to move. Business exist to make money. Not to pay taxes or employ people. :)hand

Only a fool would allow higher taxes in this environment.

Hence....The article...
 

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Red Blooded American
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Let's do a simple test to determine who's smarter:
Obama was a community organizer who never produced a product or service in his life then surrounded himself with tax cheats, fraudulent cheating politician, mobsters and foreign billionaires. He got elected by promising welfare recipients they will get more from the hard working people's money with his plan.

and

Microsoft Corporation is one of the fastest growing, largest and best run organizations in the entire world who have produced products and services the entire world uses daily. They have no debt! The smartest people in the world on staff and have stayed ahead of the technological wave for a couple decades making some of the richest men in the world.

Which group will figure out how to win this stupid tax battle?

Of course, they are prepared to run offshore to avoid the Kenyon's redistribution of wealth. They are smarter and they'll make him look like the mindless weasel that he is. He has no chance against them and they are only one of the smarter corporations this Kenyon will run out of our country.

He truly is a chimp!
 

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So he's trying to force companys to bring jobs back home, Of course there going to cry foul.
And that's what you took from that article? :)st
 

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Let's do a simple test to determine who's smarter:
Obama was a community organizer who never produced a product or service in his life then surrounded himself with tax cheats, fraudulent cheating politician, mobsters and foreign billionaires. He got elected by promising welfare recipients they will get more from the hard working people's money with his plan.

and

Microsoft Corporation is one of the fastest growing, largest and best run organizations in the entire world who have produced products and services the entire world uses daily. They have no debt! The smartest people in the world on staff and have stayed ahead of the technological wave for a couple decades making some of the richest men in the world.

Which group will figure out how to win this stupid tax battle?

Of course, they are prepared to run offshore to avoid the Kenyon's redistribution of wealth. They are smarter and they'll make him look like the mindless weasel that he is. He has no chance against them and they are only one of the smarter corporations this Kenyon will run out of our country.

He truly is a chimp!
Dead nuts on target, Doctor....And since the US has the highest corporate tax in the world adding more tax is not the solution to trying to get companies to stay or return to this country. We are truly led by idiots, crooks and self-serving douchebags.
 

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I'm baaaaack...
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Dead nuts on target, Doctor....And since the US has the highest corporate tax in the world adding more tax is not the solution to trying to get companies to stay or return to this country. We are truly led by idiots, crooks and self-serving douchebags.
Are you somehow surprised?
 

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Administrator
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Perhaps less tax would help bring companies back and discourage more exodus. Just a thought. :)bulb
 

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Red Blooded American
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Perhaps less tax would help bring companies back and discourage more exodus. Just a thought. :)bulb
Mike, what are you doing up at this hour?
Why are you making so much sense? Surely the Kenyon will figure this out, right?
 

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Colts fan & Stoker owner
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Right on the money there. News saying one out of six are getting their income from the government.


Dead nuts on target, Doctor....And since the US has the highest corporate tax in the world adding more tax is not the solution to trying to get companies to stay or return to this country. We are truly led by idiots, crooks and self-serving douchebags.
 

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Perhaps less tax would help bring companies back and discourage more exodus. Just a thought. :)bulb
The less taxes companies pay, the more taxes YOU pay. Just a THOUGHT. :)bulb
 

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Mike, what are you doing up at this hour?
Why are you making so much sense? Surely the Kenyon will figure this out, right?
If you think he was born in Kenya, the correct word is KenyAn. Calling Obama a chimp is racist. You're a racist just like Ultra26 says you are. As to being a "doctor", I bet you couldn't suture up a dead chicken.
 

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June 3 (Bloomberg) –– Microsoft Corp. Chief Executive Officer Steven Ballmer said the world’s largest software company would move some employees offshore if Congress enacts President Barack Obama’s plans to impose higher taxes on U.S. companies’ foreign profits.

“It makes U.S. jobs more expensive,” Ballmer said in an interview. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.”

Obama on May 4 proposed outlawing or restricting about $190 billion in tax breaks for offshore companies over the next decade. Such business groups as the National Foreign Trade Council, the U.S. Chamber of Commerce and the Business Roundtable have denounced the proposed overhaul.

U.S. tax rules let companies defer paying corporate rates as high as 35 percent on most types of foreign profits as long as that money remains invested overseas. Obama says he wants to end such incentives to keep foreign profits tax-deferred so that companies would invest them in the U.S.

Microsoft reported an overall effective tax rate of 26 percent for 2008 in its last annual report. “Our effective tax rates are less than the statutory tax rate due to foreign earnings taxed at lower rates,” the report said.

Barry Bosworth, an economist in Washington at the Brookings Institution research center, said many software companies such as Microsoft have exploited tax and trade rules in the U.S. and other countries to achieve a low overall tax rate.

Ireland Subsidiary

Typically, he said, a company like Microsoft develops a product like Windows in the United States and deducts those costs against U.S. income. It then transfers the technology to a subsidiary in Ireland, where corporate tax rates are lower, without charging licensing fees. The company then assigns its foreign sales to the Irish subsidiary so it doesn’t have to claim the income in the United States.

“What Microsoft wants to do is deduct the cost at a high tax rate and report the profits at a low tax rate,” Bosworth said. “Relative to where they are now, the administration’s proposals are less favorable, so there will be some rebalancing on their part.”

Ballmer is one of 10 U.S. software company executives pushing back against the tax proposals in meetings today with White House officials including Jason Furman, deputy director of the National Economic Council, and the heads of congressional committees such as House Ways and Means Committee Chairman Charles Rangel, a New York Democrat.

Expense Deductions

Among other things, Obama proposed limiting expense deductions such as those for employee compensation when companies defer U.S. tax on foreign profits.

In a roundtable discussion today, Ballmer, Symantec Corp. Chairman John Thompson and the heads of smaller companies such as privately held Bentley Systems, an Exton, Pennsylvania-based maker of engineering software, said such policies would hurt domestic investment, reduce shareholder value and increase the cost of employing U.S. workers.

Ballmer said that, while the Obama proposals would preserve expense deductions related to research and experimentation costs, the overall deduction limits for companies that defer tax on foreign profits would raise the cost of employing U.S. workers. Fiduciary responsibility to shareholders would require Microsoft to cut costs, he said, meaning many jobs would be moved out of the country.

Worldwide Employees

Microsoft employed 95,029 people worldwide as of April 21, of whom 56,552 were based in the United States, according to the company’s Web site. The company announced it was firing up to 5,000 people in January while hiring some new workers; the company has shed about 1,000 jobs since then, spokesman Lou Gellos said.

Ballmer estimated that higher taxes under the proposal would reduce profits for companies that comprise the Dow Jones Industrial Average by between 10 and 15 percentage points.

“It’s just a question of how much will the Dow come down,” Ballmer said. “It’s not about companies anyway; we’re talking about shareholders.”

In addition to limiting current deductions for companies that defer U.S. tax on their foreign profits, Obama proposed altering a set of rules known as “check the box” that allow companies to shelter foreign profits in offshore subsidiaries that can be disregarded for U.S. tax purposes.

Duck Liabilities

While the rules were designed in 1997 to protect U.S. companies from paying excessive tax to other governments, Obama administration officials say it has evolved into a way to duck U.S. liabilities. Altering the rule, which Obama dubbed a “loophole,” would generate $86.5 billion in new revenue by 2019, the administration says.

The third international tax proposal would change rules governing how companies can claim tax credits for levies paid to foreign governments. Officials say some companies abuse the rule to accelerate tax credits before they could otherwise be claimed.

Obama has said his proposals would protect or create jobs in the United States.

Thompson of Symantec, the Cupertino, California-based maker of Norton anti-virus software and similar tools, said software companies are frustrated by being called tax cheats and compared with companies that moved their headquarters to low-tax countries such as Bermuda.

‘Counterintuitive’

Thompson called the Obama proposals “counterintuitive” to the administration’s other stated goals of fostering an innovation-oriented economy.

“It is a little bit ironic that most of our most significant trading partners and partners globally have taken the tack that they’ll reduce corporate tax rates to stimulate economic growth and not raise corporate tax rates,” Thompson said.

The roundtable was organized for Bloomberg News by the Business Software Alliance, a Washington trade group coordinating the executives’ meetings with policymakers.

To contact the reporter on this story: Ryan J. Donmoyer at e-mail [email protected]
Last Updated: June 3, 2009 16:12 EDT


http://www.bloomberg.com/apps/news?pid=20601087&sid=aAKluP7yIwJY#
I think I speak for Apple when I say "Microsoft, don't let the doorknob hit you in the ass". :)hand
 
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Mike, what are you doing up at this hour?
Why are you making so much sense? Surely the Kenyon will figure this out, right?
It would be nice, whether we agree on what the President is doing or not, if we could get past calling him a "chimp" or "The Kenyan"
 

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Red Blooded American
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Fan following #36
It would be nicer if he released his birth and education records. I wonder why he has them sealed? Got any ideas? Many on here may call him a Chimp due to his heritage but I choose to do it due to his primitive way of thinking. When and if his records do go public, we'll all know the truth. I find it amusing he's openly produced the fake Hawaiian birth certificates but refuses to have the records purged in the name of truth?

It would've been really nice if the media would have shed one shred of positive light on the nation's last choice for POTUS but that didn't happen.
 

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sometimes Mr. LLGirl ;)
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Fan following #36
It would be nicer if he released his birth and education records. I wonder why he has them sealed? Got any ideas? Many on here may call him a Chimp due to his heritage but I choose to do it due to his primitive way of thinking. When and if his records do go public, we'll all know the truth. I find it amusing he's openly produced the fake Hawaiian birth certificates but refuses to have the records purged in the name of truth?

It would've been really nice if the media would have shed one shred of positive light on the nation's last choice for POTUS but that didn't happen.
www.factcheck.org/elections-2008/born-in-the-usa.html

factcheck seems to be a non partisan website. Is this accurate?

mrll
 
U

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Guest
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Fan following #36
It would be nicer if he released his birth and education records. I wonder why he has them sealed? Got any ideas? Many on here may call him a Chimp due to his heritage but I choose to do it due to his primitive way of thinking. When and if his records do go public, we'll all know the truth. I find it amusing he's openly produced the fake Hawaiian birth certificates but refuses to have the records purged in the name of truth?

It would've been really nice if the media would have shed one shred of positive light on the nation's last choice for POTUS but that didn't happen.
I find it amusing he's openly produced the fake Hawaiian birth certificates
Post the proof for this one.

___________________________________

Mrll try this link
http://www.factcheck.org/elections-2008/born_in_the_usa.html
 

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The less taxes companies pay, the more taxes YOU pay. Just a THOUGHT. :)bulb
I tell business owners this all the time....you can't get rich off of one client. Lower your prices and you might just get more customers. Lower tax increases spending as it all becomes cheaper. I'd rather get more for my dollars than to pay more tax on it.

Think of it this way....I was looking at buying a new car but with the new car tax, I'm thinking real long and hard about it. So the car tax is now preventing sales tax from happening as I'm not buying a new one right now.
 
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