Why aren't US citizens doing it already?
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Trading Shell Corporation for Taxation Purposes (35% vs 39.6%)
- Thread starter MRBRETTONWOODS
- Start date
Why aren't US citizens doing it already?
Quote from newwurldmn:
Why aren't US citizens doing it already?
If they aren't already doing it, then they need to realize that foreign investors get a better deal on us investments than they do. Foreign Investors using blocker corporations are capped at 35% tax liability.
Even in Canada, the capital gains tax rate is 22%.
Even in France, which has the highest rate in Europe (other european nations and also asian nations have it much lower), it is still only 34.5%. Whereas in the US, it is now 39.6+3.8 Obamacare tax making it 43.4%. So in that regard, the US is now 'more socialist' than so-called 'socialist europe'.
Quote from MRBRETTONWOODS:
If they aren't already doing it, then they need to realize that foreign investors get a better deal on us investments than they do. Foreign Investors using blocker corporations are capped at 35% tax liability.
Even in Canada, the capital gains tax rate is 22%.
Even in France, which has the highest rate in Europe (other european nations and also asian nations have it much lower), it is still only 34.5%. Whereas in the US, it is now 39.6+3.8 Obamacare tax making it 43.4%. So in that regard, the US is now 'more socialist' than so-called 'socialist europe'.
Everyone is well aware of this.
So the conclusion is either
1. The laws for us citizens mean it doesn't make sense for them to do.
2. All the accountants are stupid and you are smart.
3. You are a foreign person, and you should look at this for sure.
Quote from newwurldmn:
Everyone is well aware of this.
So the conclusion is either
1. The laws for us citizens mean it doesn't make sense for them to do.
2. All the accountants are stupid and you are smart.
3. You are a foreign person, and you should look at this for sure.
Even at 39.6% you can make the argument that it is an incidental increase, but when it becomes 43.4%, the story changes. 43.4% is almost half your income, vs 35%, which is closer to 1/3rd.
It should be possible to do it, why wouldn't it? If it isn't (for which no one has yet provided an explanation for why it should be that case), then one should seriously consider leaving the US.
Quote from MRBRETTONWOODS:
Even at 39.6% you can make the argument that it is an incidental increase, but when it becomes 43.4%, the story changes. 43.4% is almost half your income, vs 35%, which is closer to 1/3rd.
It should be possible to do it, why wouldn't it? If it isn't (for which no one has yet provided an explanation for why it should be that case), then one should seriously consider leaving the US.
So conclusion #2.
Quote from MRBRETTONWOODS:
You wouldn't provided reasons for why this method wouldn't be possible, but otherwise the option would be #3 to renounce us citizenship and leave the country. Even 8.4% can add-up in the long-run.
Like I said. You are on to something that no accountant has figured out.
Quote from newwurldmn:
Like I said. You are on to something that no accountant has figured out.
If it works for foreign investors, then why wouldn't it work for US investors? It's the same basic concept, and it's well-established that accountants do use these techniques for foreign investors, perhaps the incentive (35% upper rate vs 43.4% now) simply didn't exist to apply these techniques to US investors until only recently?
Quote from MRBRETTONWOODS:
If they aren't already doing it, then they need to realize that foreign investors get a better deal on us investments than they do. Foreign Investors using blocker corporations are capped at 35% tax liability.
Even in Canada, the capital gains tax rate is 22%.
Even in France, which has the highest rate in Europe (other european nations and also asian nations have it much lower), it is still only 34.5%. Whereas in the US, it is now 39.6+3.8 Obamacare tax making it 43.4%. So in that regard, the US is now 'more socialist' than so-called 'socialist europe'.
yet we still dont get any benefits of the socialist model! its becoming insanity. Thats why my comments on these boards are always left leaning. If we get taxed more then France for gods sake...should we at least get a public health care options for free? should the university of texas be free once you get accepted? its starting to be unbelievable.
You treat giving up your citizenship as if it is meerly an accounting issue; run the numbers and the spread sheet will tell all -- all you need to know to make what for most Americans would be a momentous decision. Some of us -- I'll wager most of us -- will opt to pay the taxes and remain comfortable in the company of our family and friends regardless of what column H tells us to do. The reason the decision is a no brainer for you and quite a bit different for me is that I recognize that there are considerations which can not simply be entered as a data point that will be reflected in column H. To you it might be simply sentiment that interferes with coming to a sound business decision whereas to me each large business decision must support my happiness. Numbers are great aids in the decision making process but you can't automate life; it truly involves discretionary trade offs that most be made beyond the numbers.
Quote from MRBRETTONWOODS:
Even at 39.6% you can make the argument that it is an incidental increase, but when it becomes 43.4%, the story changes. 43.4% is almost half your income, vs 35%, which is closer to 1/3rd.
It should be possible to do it, why wouldn't it? If it isn't (for which no one has yet provided an explanation for why it should be that case), then one should seriously consider leaving the US.