LET'S NOW TAX EARNINGS IN FOREIGN COUNTRIES-TAX TREATIES NOW CALLED LOOP-HOLES BY NEW ADMINISTRATION

The new administration now wants to usurp tax treaties with the worlds industrial countries as well as all others, by taxing the earnings in those foreign countries as if they were to be US earnings.

It would stand to reason, that all the other countries with such treaties would then tax the US earnings of their multi-national companies, and so a whopping tax increase for all multi-national corporations, both in the US and abroad.

Under most tax treaties, the profits earned in a foreign country are taxed BY THAT COUNTRY. Sounds fair, does it not?

Those profits are NOT taxed in the USA, since they are not earned in the USA. However, when those profits are brought to the USA, they are taxed at the USA rates with a credit for the taxes paid offshore.

Now the administration has called this "tax loopholes" and "tax havens" instead of LAWFUL compliance.

Nuts, have these guys even read or learned what a TAX TREATY is, and why it exists?

Probably not, just great words to make it seem like the multi-national corporations are not following the law, that they are cheating the tax man.....NOT TRUE, not even close.

What often happens is that a USA based multi national corporation may actually make more profits in the foreign countries, thus helping to support losing operations domestically. Without those profits overseas, the domestic operations may be closed.

So, will this big talk of tax avoidance help employment here?

No.

Another great plan by the government to cut employment in the USA, based on the principle of unintended consequences.

Also, the total; disregard of the tax treaties is just adding to the administration's total disregard of the NAFTA treaty as well which has already caused a backlash due to the USA's unilateral disregard.