General discussion

Google pays lower tax rate than you to US

I guess it's easier for the goverment to go after you and me than to make sure the corporations pay their fair share. Just seems profits earned in our markets should be taxed in our country at a fair rate BEFORE being shipped to offshore tax havens like Bermuda and Cayman Islands.


Google pays less than 3% in US taxes on profits actually earned here

The heart of Google's international operations is a silvery glass office building in central Dublin... the office, which houses roughly 2,000 Google employees, was credited with 88 percent of the search juggernaut's $12.5 billion in sales outside the U.S. Most of the profits, however, went to the tax haven of Bermuda.

To reduce its overseas tax bill, Google uses a complicated legal structure that has saved it $3.1 billion since 2007 and boosted last year's overall earnings by 26 percent...managed to lower its overseas tax rate more than its peers in the technology sector. Its rate since 2007 has been 2.4 percent. (more at article)

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Comments
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Well,

That's what you should expect from those right wing capitalists.

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AND the keyword IS?

Google uses a complicated LEGAL structure

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Doesn't bother me....

except that I wish I could avoid more taxes too.

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avoid more taxes

Then you need more income...It's the guys with the money that avoid taxes.but even then

the other option is..... less income.

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It should bother you

It means the government is chasing capital out of the country

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Why should it bother you?

It's just good business sense. That's Corporate financial management and I thought you were all in favor of Corporate.

Mark

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Good business sense...

but bad government policy?

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Yes,

That is correct.
Not hard to understand

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Who's Government?

It's been that way for decades.

No Administration has attempted to plug this loophole, if that is what it is.

I am confused though. I didn't read the whole of the article linked to as it is way above my small head, but I always thought Google was a US Company. Yet the article says, "The heart of Google's (Nasdaq: GOOG - News) international operations is a silvery glass office building in central Dublin".

So does that make it an Irish company then?

If so, I am not sure what US taxes are being avoided.

Mark

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Headquarters in US
http://finance.yahoo.com/q/pr?s=GOOG+Profile

Google Inc. was formerly known as Google Technology Inc. Google Inc. was founded in 1998 and is headquartered in Mountain View, California.

http://investor.google.com/corporate/certificate-of-incorporation.html
GOOGLE INC., a corporation organized and existing under the laws of the State of Delaware (the "Corporation"), hereby certifies as follows:

A. The name of the Corporation is Google Inc. The Corporation's original Certificate of Incorporation was filed with the Secretary of State of the State of Delaware on October 22, 2002.

B. This Third Amended and Restated Certificate of Incorporation was duly adopted in accordance with Sections 242 and 245 of the General Corporation Law of the State of Delaware, and restates, integrates and further amends the provisions of the Corporation's Certificate of Incorporation.

C. The text of the Certificate of Incorporation of this Corporation is hereby amended and restated in its entirety as set forth in Exhibit A attached hereto.

IN WITNESS WHEREOF, Google Inc. has caused this Third Amended and Restated Certificate of Incorporation to be executed by the undersigned officer, thereunto duly authorized, this 24th day of August, 2004.

GOOGLE INC.
a Delaware corporation
By:
/s/Eric Schmidt
Eric Schmidt
Chief Executive Officer
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Ever notice how many corporations

are "based" in Delaware? espcially banks.

And it's obviously because the rules, including taxes, are more beneficial there. I can't remember the other advantage right off the top of my head, but I've read a few articles pointing out why they're all there and how much they benefit from the difference in legalities there.

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Which makes sense...

what would you do?

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Can't fault them particularly

Just an observation really. And another example of basically the same type of activities as companies basing income somewhere they'll pay less.

Can't remember exactly now, which country is that an overwhelming number of cruise ships, and I think freighters also, are registered under? even if they never put into port in that country.

Ah, here is one story on it.

SO OFTEN the most thoughtful questions come from the intelligent non-specialist. The Shetland oil disaster prompted a reader to inquire why industrial countries such as Britain accepted the use of flags of convenience, such as Liberia, or perhaps more important, tax havens such as Liechtenstein. Why not just make their use illegal?

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That's strange.

If they lower the corporate taxes google will save less, but pay the same (in Ireland).

So it won't make any difference, except a cosmetic one: they won't save 1 G$ a year, but only 900 M$ (if the taxes are lowered 10%). I don't think that's enough incentive to change anything to their setup.

Where's the bad government in this story? What should a good (Republican?) government do?

Kees

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but that's not the question

The question is why IRS and our govt allows this to happen? I've often felt a tax on corporations alone and do away with individual income tax would save govt expense and make tax collection easier. When you see what they let Google among others do to escape taxation at even the lowest individual rate, one can't help but feel there's a lack of equality in the approach to taxes, especially as taxation was originally conceived by our forefathers. The taxes of their day were basically a tax on business, and not on individuals.

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Would that not make matters worse ...

If we taxed businesses and not individuals, would that not increase the incentive for businesses to shelter funds offshore where it is treated more favorably?
I doubt that it is possible to devise a tax system that would protect us against the schemes of tax attorneys and multinational businesses working together to minimize tax obligations.

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Tax corporations, and...

the tax gets passed along to the consumer.

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True, though it seems many don't think of it

In the end, all taxes are paid by individuals.

Of course, with corporate taxes, you have a few states that don't have an individual income tax. All their income taxes comes from customers world wide of the in-state businesses. You could protest they're shifting their tax burden to others.

Of course we all pay cost to businesses from all over the world.

I wonder what the income tax rate average would figure out to be if you took the US Federal tax income for last year and divided it by the number of individuals that filed US tax returns.

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You could protest they're shifting...
their tax burden to others.

Or you could say they are doing things right. Not stealing as much from the citizens as the others.

I live in one of those states, BTW... "tax free" New Hampshire. High property taxes though.
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there are those who agree with you
http://www.reclaimdemocracy.org/
http://www.reclaimdemocracy.org/corporate_accountability/history_corporations_us.html

Still, seems rather than trying to track all the workers in population of 330 million people, it would save time and effort and therefore money to track the 5 million corporations or 25 million total businesses in the US, and collect taxes from them instead. Sort of the modern day concept of supporting the country by tariffs as done in the past before President Wilson saddled us with this onerous and intrusive individual taxation system.
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Fairtax

Adopt the Fairtax and be done with these stories.

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Let them eat my cake

It's only natural. But, its as natural to go after them too. Why, isn't this done, because Google preys on your politicians just like any other big business. Who is govt. going to listen to, you or some checking writing business person? off soapbox -----Willy Happy

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