Comment Re:Perspective? (Score 1) 429
Do they owe the U.S. anything more than corporate taxes?
Get real. Microsoft doesn't pay taxes. One of the most profitable companies in the world, and they don't pay taxes. They use transfer pricing from other countries to get out of it. Off-shore labor and subisidaries is how they arrange it.
They develop products or print CDs in places like China, shipping it to the US through a subsidiary in a country that doesn't have taxes. The US division "buys" it at an intra-company price that is nearly the same as their wholesale price. The US division then resells it at 0 profit.
Don't believe me? Read the Annual Reports for the past few years. That's why there's a nominal number (like 0) listed in the tax paid line.
And you wonder why the US has budget and trade deficits? Our tax system incentivizes companies to ship off jobs.
Get real. Microsoft doesn't pay taxes. One of the most profitable companies in the world, and they don't pay taxes. They use transfer pricing from other countries to get out of it. Off-shore labor and subisidaries is how they arrange it.
They develop products or print CDs in places like China, shipping it to the US through a subsidiary in a country that doesn't have taxes. The US division "buys" it at an intra-company price that is nearly the same as their wholesale price. The US division then resells it at 0 profit.
Don't believe me? Read the Annual Reports for the past few years. That's why there's a nominal number (like 0) listed in the tax paid line.
And you wonder why the US has budget and trade deficits? Our tax system incentivizes companies to ship off jobs.
