Silicon Valley vs. Corporate Taxes

Many Silicon Valley companies export their IP to subsidiaries to save on paying high corporate taxes. It's completely legal, but in a scramble for more revenue, regulators and lawmakers are looking to close the loophole.

, Corporate Counsel

   | 2 Comments

Many Silicon Valley companies export their IP to subsidiaries to save on paying high corporate taxes. It's completely legal, but in a scramble for more revenue, regulators and lawmakers are looking to close the loophole.

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Originally appeared in print as Over There

What's being said

  • Timothy E. Morgan

    One the one hand, corporate tax rates are undercut by other countries, costing the US jobs; on the other hand, few corporations are paying taxes bearing any resemblance to the rate. The obvious solution is to capture taxes on the assets sufficiently to deter moving them and also sufficiently to offset rate reductions. So often only half of this puzzle is discussed, as journalists shy away from real analysis.

  • Ray Roth

    The folks in Washington will never figure out that if they charge businesses more taxes the businesses can move to a foreign domicile like Halliburton did and greatly reduce the remaining taxes they pay. When they lose that revenue and those jobs move, the unemployment rate will increase and more folks will be on welfare and more taxes will be needed to fund the welfare rolls. In flying jargon it is called a death spiral.

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