consultants are sandburs

Wednesday, June 18, 2014

Erroneous handling of a comment leads to a post. [UPDATED]

Erroneous: MN political rountable:

The comment was directed to this Crabgrass post, and references this roundtable item.

Also of interest, another recent roundtable post, here.

It looks as if it is a site finding fault with Paulsen and Kline; and with that motivation, it can't be bad.

The bottom line with the Medtronic situation, the Tax Code needs to be reformed to tax US firm foreign earnings as and when earned; regardless of whether the earnings are parked offshore or repatriated to our nation. Tax them and they will cease their games.

Yes - possibly some pernicious trade agreement or two sits in the way of such tax reform; international law for billionaires being somewhat in vogue - favoring them, hurting Joe Citizen on Main Streat, USA. However, long term, do what is needed to reform things - to police them and make them pay tax so that Joe Citizen has less of a burden holding them on his back while billionaires and their corporate ventures party and skate [while such corporate interests also are directly or indirectly being Citizen United hemorrhoids to the body public].

Shake the hand, that shook the hand
of P.T. Barnum, and Charlie Chan.
The bottom line with Kline - Obermueller him out of office [Obermueller not only being a surname of a DFL opponent to Kline, but a verb, "to Obermueller," standing for giving Kline the hook, this election, in order to graciously retire him to his hobby farm or collecting stamps or writing memoirs or speculative investment in military paraphenalia, whatever -- but get him out of DC].

More on the Medtronic situation, the taxation ploy at play, per the term "inversions."

Strib's editorial board published an opinion piece, online here. The editorial's headline tells most of the story, "Medtronic's new poster deal for U.S. tax reform." Strib's item notes both Klobuchar and Franken support a Senate bill draft from Sen. Carl Levin, "The Stop Corporate Inversions Act of 2014," explained here (with a link to actual bill text).

The answer does not seem to be to bemoan a merger and a token "headquarters" move to shave tax dollars from the US Treasury's income; rather it does seem to be tax reform that takes away the monetary incentive for such a bogus ploy. It is only being a headquarters shift for the tax saving, so gut that payoff and firms will totally be expected to stay home, quit playing games, and behave.

1 comment:

Minnesota Central said...

IMO, I don't think that the Ireland tax rate had anything to do with the merger ... remember that Coviden previously was incorporated in Bermuda (here is their history as reported by Forbes.

While at some point in time, Congress may resolve the tax consequences, that will just set-up new questions of how to "game" the system. Instead, American needs to be concerned about climate change and where businesses will operate. Just as we have seen jobs move to where their are lower wages and better tax policies, the future is that more businesses will consider climate impact when they decide where to manufacture their product.

And a sidenote on the Medtronic-Covidien merger ... if they decide to build more medical devices overseas and then ship them into the US, the Medical Device Excise Tax still applies ... so it makes no sense to repeal it. Also, if you heard Erik Paulsen worry about job losses and lower pay over the MDET, there was a report earlier this month that medical device sales personnel average a 5% raise last year.

Every Member of Congress who supports repealing the MDET (and that includes Elizabeth Warren) is working to repeal the Affordable Care Act. The MDET is a user tax ... and is necessary to pay for the ACA.