Here at OTE we’re not content to rest on our laurels (in part, because resting on laurels is actually quite uncomfortable—they poke at you!).
So we’re trotting out a new feature today—a video interview of CBPPs tax guru, Chuck Marr. My pal Chuck and I get into it on this tax repatriation proposal that unfortunately continues to gain traction. Chuck’s been around the block with this idea (see his critiques here, here, and here), and while his docs are excellent, I like to hear from the man himself.
See what you think, OTEers—with the help of our crack production team here at the Center, I hope to do more of these.
I loved the video chat! I hope you find time to do them often. I make it a habit to check into your blog everyday, and frequently recommend it to others, but there are a lot of people out there that need more than written word to stimulate learning. I hope this type of dynamic teaching enables them to visit your site more often and become educated. Thank you!
Thanks for the feedback, and I agree re dynamics.
Don’t the companies do pay taxes overseas? Why should they pay taxes twice on the same income, once in (say) Italy and once in the USA?
Since other countries do not tax worldwide income, this double taxation seems like a big incentive not to repatriate income …ever.
Good question. With my limited understanding of economics, I would say this.
The corporations may have to claim this income in the country it was earned in- however, once they do that, they move it to tax-sheltered or lower tax nations to hold it- thus, making income off the deposits, much like an interest-bearing savings account might. They either hold, or invest it, again, overseas- but never declare it as US profit, at which point, it can be taxed.
Meanwhile, those corporations still operate here, as well. Still pay taxes on the money made in the US- just not on their entire bottom line.
Make no mistake, they are based in the United States, and it is money earned by companies that do business in the United States.
Perhaps the tax reform that’s needed in a global economy is how the nations tax corporations. The Cayman Islands, for instance, makes money off of sheltering money- and I don’t believe they tax it. If I’m not mistaken, Switzerland has a similar set up. What if that were no longer possible?
Like Ken, I’m delighted to see this video show up at OTE.
More, please.
The links between tax repatriation and layoffs (even of highly skilled employees) are not obvious to someone like myself, but this is a great way to get the information. I love it when I feel ‘reasonably’ informed in under ten minutes; enough time to discuss the topic, yet without overwhelming me with too much detail.
Nicely done; kudos to the tech staff that did the production work. I appreciate the calm, informative style (exceedingly).
Thanks much–more to come, for sure.
Dr. Bernstein,
I greatly enjoyed the discussion you got to have with the social work students today. Thank you for clarifying my question regarding population growth and jobs. You have opened my mind to this idea of financial social work and I thank you immensely for it. Definitely will spread the word about this blog. Economic literacy is quite lacking in my generation and this video is a good way to teach what may seem as a tricky concept to some.
Thanks much–and good talking to your group today…good peeps!
This is great! I especially like the stuff about how repatriation didn’t work before. So many times, in those brother-in-law conversations, one needs just that kind of story to tell. You know, the “been-there-done-that” kind of rebuttal, with dates and results.
You ever chat with Austan Goolsbee? I really liked his white-board stuff from the government, and love having those econo-topics explained clearly, just like this video.
More, more — keep ’em coming! Thanks so much…
Thanks much–I just sent Goolsbee a note the other day…he’s a great explainer of this stuff. More video to come.