One thought on “Stateless income

  1. Epistemic relativism – legal definitions, trading algorithms, CDOs, and now, MNC tax rents:
    Juicing after-tax profits using the simple, widely used devices to take profits in real places like the fictional Freedonia distorts investment decisions and erodes the U.S. corporate tax base. Kleinbard suggests it also inflates U.S. stock prices.
    That multinationals can earn a fifth higher profit this way exemplifies what Kleinbard calls “tax rents,” meaning benefits derived not from value-adding economic activity, but from exploiting the rules of different national tax systems.

    Corporations that operate only in the U.S. should worry about rules that encourage multinational corporations to create stateless income because the result tilts the playing field against purely domestic companies, many of which are family-owned.

    Do we, the 99%, know which wholly domestic companies are still paying the 35%? Would they perhaps want to join those marching today?

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