SENATE BILL: The Duke Corporate Tax Reform Act of 2013 (Amendment at Vote)

[Fmr. Pres. Duke]

The way the current code is set up is we tax repatriated money after it has already been taxes by whatever overseas country it was earned in. Hence, why so many companies hoard money offshore. 80% of countries only tax corporate earnings on income earned within the country's borders.

What I want to do is allow us to tax income from anything earned within our borders but not money made and taxed overseas. We are just subjecting our companies to double taxation when they bring money back.

Doesn't that just incentivize corporations to work overseas? They can take advantage of a softer tax rate elsewhere and repatriate the income freely.

No.

Under the system most of the industrialized world uses these days, you pay the rate rate in whichever country you make the sale in, so it doesn't matter where you incorporate.

If corp X makes $100 of sales in country A with a 15% rate, they pay 15% rate on $100 of sales and if they make $50 worth of sales in country Y with a 20% rate, they pay 20% of $50.

Right now, corp X would pay 15% on the $100 in country A and then pays an additional 25% on the $100 if they repatriate. This only hurts us given so few countries actually bring capital back to Atlasia.

Make sense?

[President Tyrion]

The way the current code is set up is we tax repatriated money after it has already been taxes by whatever overseas country it was earned in. Hence, why so many companies hoard money offshore. 80% of countries only tax corporate earnings on income earned within the country's borders.

What I want to do is allow us to tax income from anything earned within our borders but not money made and taxed overseas. We are just subjecting our companies to double taxation when they bring money back.

Doesn't that just incentivize corporations to work overseas? They can take advantage of a softer tax rate elsewhere and repatriate the income freely.

No.

Under the system most of the industrialized world uses these days, you pay the rate rate in whichever country you make the sale in, so it doesn't matter where you incorporate.

If corp X makes $100 of sales in country A with a 15% rate, they pay 15% rate on $100 of sales and if they make $50 worth of sales in country Y with a 20% rate, they pay 20% of $50.

Right now, corp X would pay 15% on the $100 in country A and then pays an additional 25% on the $100 if they repatriate. This only hurts us given so few countries actually bring capital back to Atlasia.

Make sense?

Hm, I suppose if the expressed goal were to be to maximize capital onshoring, as opposed to tax revenue, that makes sense.

As for whether or not we should make that policy decision, I'll consider it

[Southern Senator North Carolina Yankee]

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Sponsor Feedback: What is the plan Duke?
Status: Waiting for Feedback

[Fmr. Pres. Duke]

I need to rework this bill. Am I allowed to or do I need a senator to sponsor an amendment? Can't I just become a senator?

[Maxwell]

I need to rework this bill. Am I allowed to or do I need a senator to sponsor an amendment? Can't I just become a senator?

I will sponsor whatever your amendment is.

[Fmr. Pres. Duke]

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Basically, all of section I has been rewritten. The first bill is actually what we DO NOT want to do. Countries like New Zealand who adopted a policy like that stagnated and eventually abandoned it for what is described above.

[Southern Senator North Carolina Yankee]

Maxwell, when are you going to introduce that?

[Maxwell]

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Introducing Duke's Amendment

[Southern Senator North Carolina Yankee]

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Sponsor Feedback: Friendly
Status: Senators have 24 hours to object.

[Southern Senator North Carolina Yankee]

Like I said a little while ago. People who dive into this without knowing what they are doing can easily find themselves in big trouble. I have heard mention of this "territorial tax" system as preferable, but admitedlly I never had a deep knowledge of it and how it operated.

[Southern Senator North Carolina Yankee]

And no Duke, you are constitutionally required to make friends with us, not bypass us.

[Southern Senator North Carolina Yankee]

Amendment 58:52 has been adopted.

[Southern Senator North Carolina Yankee]

Are we readyl to wrap this up now, Mr. President? Senators?

[President Tyrion]

Changing the wording slightly, so as to avoid the usage of loopholes

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[Fmr. Pres. Duke]

Ready and willing!

[Southern Senator North Carolina Yankee]

Duke, is that a indication of a friendly reception to the amendment?

[Southern Senator North Carolina Yankee]

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Sponsor Feedback: Waiting for President's Response
Status: Vote Too Come Soon w/o it.

[Fmr. Pres. Duke]

Friendly, yes

[Southern Senator North Carolina Yankee]

Senators have 24 hours to object.

[Southern Senator North Carolina Yankee]

Are we ready for a vote here once the amendment has been adopted.

[Southern Senator North Carolina Yankee]

The amendment has been adopted.

[Maxwell]

Can I get a looksie at what we have thus far.

[Southern Senator North Carolina Yankee]

It is look three posts up, dude.

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[Maxwell]

I've admittedly been less attentive lately, I apologize. Looks good.

[TNF]

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