Agreed, I'm not saying tax reform will be easy. Just noting that blaming corporations for exploiting, though thats a bit of a loaded term, perhaps advantageously utilizing existing tax structures is a bit naive. The incentives currently mean a corporation would be wrong to ignore tax breaks, that coupled with for example the corporate tax rate for money repatriation in America for example means that less tax income is generated at current law interpretation.
Basically is 35% of 0 dollars better than 10% of N dollars? In the US that is effectively our current dilema is it not? Our tax rates for certain things are so high people have no incentive to get double taxed in two disparate countries so they leave the money outside of any taxable entity. Improving the incentives to bring money back would seem to be a no brainer as it is a bit of a win/win situation to both sides.
As to disparities amongst countries, I'm not sure there ever could be a solution outside of some overreaching treaty agreements. Past that I'm sure there will always be a Caymans willing to lower their costs at the expense of the rest.
Basically is 35% of 0 dollars better than 10% of N dollars? In the US that is effectively our current dilema is it not? Our tax rates for certain things are so high people have no incentive to get double taxed in two disparate countries so they leave the money outside of any taxable entity. Improving the incentives to bring money back would seem to be a no brainer as it is a bit of a win/win situation to both sides.
As to disparities amongst countries, I'm not sure there ever could be a solution outside of some overreaching treaty agreements. Past that I'm sure there will always be a Caymans willing to lower their costs at the expense of the rest.