Comment You are confusing corp tax dodge and personal tax (Score 1) 825
It's simply an extension of America's weird world view that they should be owed taxes on money not earned in America. No other country has this odd view, instead, money earned abroad is taxed abroad. The US tax system also has weirdnesses like this for anyone who's a dual national or green card holder... Dual US/British citizen and earning money in Britain? Great, you'll be paying both UK and US income tax on that!
That is a very different issue. That is just about you picking loyalty to a country. When you have dual citizenship, who do you vote for? Who do you fight for in a war draft? Which government is responsible for you?
What is going on here is corporations having a token office and token holding company incorporation papers in whatever country has little taxes or little accounting oversite and exploiting
How Apple avoids paying taxes on iTunes revenue Luxembourg served as one of Apple’s overseas tax havens from September 2008 until December of last year, giving the company a 1.2% corporate tax rate. Over two-thirds of Apple’s European revenue from iTunes was routed through its Luxembourg holding company called iTunes Sarl . Apple has since moved the holding company to Ireland where it pays less than one percent tax on iPhone and iPad sales. http://www.cultofmac.com/30265...
THIS IS A HUGE PROBLEM. Example: We subsidize education with tax dollars so people can get good enough jobs in future to buy iphones and design iphones, then we tax that corporate revenue to pay for the subsidization. This is basically making everyone elses tax burden higher. This isn't a 2 trillion money steal, it is money they would have owed in any rational system anyways,