Trump tax cuts could be a conspiracy | United States | Trump | tax cuts


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  Text / Sina Finance opinion leaders columns (micro-channel public number kopleader) columnist Liang Haiming US President Trump recently launched the largest tax cuts in American history, the biggest highlight of the program is to slash the corporate tax rate from 35% to 15 %, some critics have pointed out that Trump this will enable companies in the United States, the actual overall tax burden is lower than other developed countries undertake to significantly enhance America's competitive advantage, in order to attract countries around the world, including Chinese companies, including enterprises to invest up company, has been operating in the United States or foreign companies continue to expand the operation scale in America。
  There is no doubt that Trump's tax cuts, will enable enterprises, especially SMEs benefit, but also help to increase American jobs and stimulate economic growth dynamics。
However, if it is considered that the US tax cuts to attract global foreign enterprises, including Chinese companies, including the United States set up investment companies, I have a different view。
  First, the US corporate tax rate of 15% is not attractive。 States many companies prefer to companies registered with the Cayman Islands, Bermuda and the British Virgin etc. 10 overseas "tax havens", these tax havens not only no longer need to pay corporate income tax, profits tax, that is essentially zero tax rate。   Moreover, the tax haven of the Companies Act, the company's dividend provisions loose, both from company profits, but also from the share premium account of dividends to shareholders, the company's small shareholders are very happy to see this。   With Chinese companies, for example, not to mention more than 1,000 companies listed in Hong Kong, up nearly 80% of the company has been in the Cayman Islands, Bermuda and other tax havens registration, even large enterprises in Mainland China, many have overseas "identity card"。 For example, we are very familiar with Alibaba, Tencent and Baidu controlling shareholders of listed companies are registered in the Cayman Islands, the two telecom operators, China Mobile, the controlling shareholders of listed companies are registered in the British Virgin。   So, even after tax cuts, the US company's tax rate is also higher than the tax haven, and corporate law is more stringent than the tax havens, the ability to attract foreign enterprises already in the tax havens, to the United States registered company it?I believe the answer is not difficult to readers。   Second, America's "national treatment" or make too much for the majority of foreign-funded enterprises。 Even with foreign companies because of US tax cuts and investment to the United States, or the United States capital, but the US government seems to many domestic and foreign enterprises equal treatment policies, the real damage is easy for foreign companies。
  In this example I to the financial sector。
At 15% tax rate, even if they can attract a large number of foreign financial institutions doing business to the United States。 However, the Fed has adopted the provisions of foreign banks in the capital of the United States, the standard to be on par with the US banks, this provision seems to be fair there is a trap。   On the surface, the Fed move equally, the world's financial institutions in the United States can enjoy national treatment。
Particularly early in 2008 after the outbreak of the global financial crisis, the US launch of the quantitative easing policy, not only to save the country's financial institutions, but also to save all the business of foreign financial institutions in the United States。
Therefore, the Fed raises capital requirements for foreign banks in the United States, it is hoped to improve with operations in the United States anti-risk ability of foreign banks, even after the United States launched the QE policy, foreign banks will not issue cash flow problems arise again, without the United States to save。
  But this "national treatment" of the United States is likely to be underhand, on the one hand, foreign banks in order to meet the new requirements of the Federal Reserve either had to put a lot of money transferred from abroad to the United States, or forced to leave the funds in the United States reserved profit, meaning that even if foreign banks earn a lot of money in the United States, it is difficult then back to the country。 On the other hand, some foreign banks will be forced to meet the new requirements and increased operating costs, which will not only lead to falling revenues and profits, foreign banks vacated business site, it will naturally be US banks seized。   In this case, 15% of US corporate tax, it will be much more attractive to foreign?  In addition, due to the low Irish corporate tax rates, only%, more flexible tax and legal system, so Ireland in the past few years has attracted more than a thousand companies to invest, which is about 700 US companies, among them Microsoft, Google, Facebook and other leading technology companies to Ireland as its European headquarters。
  When American 15% encountered% in Ireland, how many US companies have been in Ireland are willing to return to the US and therefore it?This account, I believe we all know technology。
  In summary, I think, Trump tax cuts, more is given to those foreign companies have invested in the US, as well as local enterprises to stay in the United States a reward to encourage these companies to remain operating in the US, rather than We hope 15% tax rate to attract foreign companies to invest。

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