Monday, April 03, 2006

How to restrain Offshoring in the modern US economy


1) have the IRS define a US Corporation as being any corporation where:
  • More than 50% of the corporation's income is due to US sales
  • More than 50% of the corporation's income is due to US made products
  • More than 50% of the corporation's employees are US Citizens
  • The corporation's headquarters located within the US or US territories
  • The corporation is incorporated in the US or a US territory
  • The corporation is controlled by US citizens
    (one or more of the following applies)

    • More than 50% of the senior executives are US Citizens
    • More than 50% of the Board of Directors are US Citizens
    • More than 50% of the corporation's stock is held by US Citizens
2) Limit all Federal Corporate Tax Deductions to no more than 20% of the tax withholdings for US employees that make between 1.5 and 15 times the Federal minimum wage.

3) Limit all State Corporate Tax Deductions to no more than 20% of the tax withholdings for employees in that state that make between 1.5 and 15 times the State minimum wage.

4) Entitle all States to collect corporate taxes from any corporation that does business in that state on the amount of the corporation's income (after expenses) that comes from that state.


It would no longer be permissable for a corporation to avoid taxes by opening an office in the Cayman Islands and then declaring itself a Cayman Island Corporation even though the corporation does no significant business in the Cayman Islands.

It would also no longer be possible for a corporation to incorporate in delaware to avoid state corporate taxes and then do most or all of it's business in another state.

0 Comments:

Post a Comment

<< Home