I read threads like this, and I wonder if the US will ever come right. This "us vs the rich" sickness that has taken over is not going to end anytime soon it seems, and sadly there is zero accountability on either side. This thinking is a sickness, and once it takes hold its a slippery downward slope. I visit Mikes blog and like most of his posts, but this is one issue we will probably never see eye to eye on.
Everyone is playing the frikken victim card here.
Carried interest is income that was already taxed. Why must you pay double taxation and why are you punishing
1) Savers?
2) Investors who add liquidity to banks?
You should not even be paying tax on interest, let alone CARRIED INTEREST. New income in a bank account would have been taxed already. You paid tax on it if its net income. Taxing its returns when saved in bank accounts is exactly why so many people are holding money offshore now. You kill incentive to save money.
Jesus, its like you guys are quite cool to remove as many incentives as you can for people to invest. This is why business is dying and shit is not going to get better for you. You are trying to tax you way out of a hole, not grow your way out of it. It never works and cannot work, but hey, you want your free shit now!
My partner was looking to move to the USA. We were going to establish a plant in Florida, where he wants to live. We have been wanting to make a push into the US with all the activity in the natural gas market there and with the new oil deposits. I mentioned on here before that I needed to come out in June, but we canned it.
We have since cut the idea completely:
1 - Privacy laws being invaded to ridiculous levels. US demands access to our company records even when they are abroad because a US resident will have foreign holdings in their view, and we are private company. He has to agree to company audits of our entire operation at the whim of the IRS. This also includes access to company data held in foreign countries, Im talking shit like email and even IP. So not just the US business, everything everywhere. Please, go fuck yourself America. You are not the prom queen anymore.
2 - Corporate taxes in the USA are so high at the moment that it simply makes no sense for us to fabricate there. Labor is available and highly skilled, but with taxation where its sitting and the way we see little help with financed capital equipment like we would elsewhere, costs to establish are not only high, our ongoing costs make no sense at all. Operational costs are not bad on the surface, but this is tantamount to corporate theft and the way they tax structured finance. Lol, no wonder unemployment is rising. Investment risk cant be reduced through effective operational finance or scaled finance, you have to take the entire hit almost upfront.
3 - He has realised he gets killed with taxes in his own personal capacity. We all take dividends, we dont take salaries. We pay our staff salaries, we take dividends. The company pays corporate tax, and then we pay tax on the dividend in our personal capacity. I have explained on this forum before that dividend tax at income tax levels would see us taxed over 70% of our income, but that also fell on deaf ears because half the time people have no fucking clue how money or taxation even seems to work. The company tax is a tax on us, its our income. No company income, we starve. In the USA, with capital gains, dividends and all the other taxes, he is looking at almost 60% of his income being taxed if he lives in Florida. You have basically made a highly taxed social democracy like Australia look like Singapore. Also, his investments abroad are taxed, so he is double taxed and triple taxed in some cases, all for the privilege of living in Florida.
4. Floridas regulations, laws, levies, taxes, etc. My god. Some of the requirements were so absurd they made no sense. The federal stuff was one thing, but the state stuff was the final nail for the whole thing. I thought Australians suffered with red tape, but Florida? Wahahaha, what an eye opener that was.
We are not massive. Plant would have employed about 9 people total only, maybe 10/11, and would have taken a while to expand while we established a pipeline out there. But still, it was local investment, local jobs, and a guy worth a small fortune living locally. Buying houses, spending locally, trying to grow the business locally. This division manufactures.
We pulled the plug though. Why fuckin bother? Im not going to see our personal shit go to the IRS every year, the plant makes no sense for us as a business, only for him personally, and in his personal capacity he loses too much money by living there removing what personal incentive he has.
My partner has since decided to stay in Sydney, and he will fly his Costa Rican wife out to visit the folks more often instead. He is better off just running the holiday visas and maybe buying property. Thats it.
We are going to treat the northern fields like we would Russia, and we are going to work with local partners instead. No operations in the USA, we view the business climate as completely inhospitable.
Take what you want from it, but I expect that we will be thrown into the greedy pile like so many here love to do. Does not matter, if this is the way we felt, I imagine its only a very small example of whats happening on a broad scale.
I was always confident that the USA would come right and have stated that a few times on here before. Lately, my mind has changed a bit I must say. Given what we experienced and what I have seen now first hand?
Not so confident anymore.
Everyone is playing the frikken victim card here.
Carried interest is income that was already taxed. Why must you pay double taxation and why are you punishing
1) Savers?
2) Investors who add liquidity to banks?
You should not even be paying tax on interest, let alone CARRIED INTEREST. New income in a bank account would have been taxed already. You paid tax on it if its net income. Taxing its returns when saved in bank accounts is exactly why so many people are holding money offshore now. You kill incentive to save money.
Jesus, its like you guys are quite cool to remove as many incentives as you can for people to invest. This is why business is dying and shit is not going to get better for you. You are trying to tax you way out of a hole, not grow your way out of it. It never works and cannot work, but hey, you want your free shit now!
My partner was looking to move to the USA. We were going to establish a plant in Florida, where he wants to live. We have been wanting to make a push into the US with all the activity in the natural gas market there and with the new oil deposits. I mentioned on here before that I needed to come out in June, but we canned it.
We have since cut the idea completely:
1 - Privacy laws being invaded to ridiculous levels. US demands access to our company records even when they are abroad because a US resident will have foreign holdings in their view, and we are private company. He has to agree to company audits of our entire operation at the whim of the IRS. This also includes access to company data held in foreign countries, Im talking shit like email and even IP. So not just the US business, everything everywhere. Please, go fuck yourself America. You are not the prom queen anymore.
2 - Corporate taxes in the USA are so high at the moment that it simply makes no sense for us to fabricate there. Labor is available and highly skilled, but with taxation where its sitting and the way we see little help with financed capital equipment like we would elsewhere, costs to establish are not only high, our ongoing costs make no sense at all. Operational costs are not bad on the surface, but this is tantamount to corporate theft and the way they tax structured finance. Lol, no wonder unemployment is rising. Investment risk cant be reduced through effective operational finance or scaled finance, you have to take the entire hit almost upfront.
3 - He has realised he gets killed with taxes in his own personal capacity. We all take dividends, we dont take salaries. We pay our staff salaries, we take dividends. The company pays corporate tax, and then we pay tax on the dividend in our personal capacity. I have explained on this forum before that dividend tax at income tax levels would see us taxed over 70% of our income, but that also fell on deaf ears because half the time people have no fucking clue how money or taxation even seems to work. The company tax is a tax on us, its our income. No company income, we starve. In the USA, with capital gains, dividends and all the other taxes, he is looking at almost 60% of his income being taxed if he lives in Florida. You have basically made a highly taxed social democracy like Australia look like Singapore. Also, his investments abroad are taxed, so he is double taxed and triple taxed in some cases, all for the privilege of living in Florida.
4. Floridas regulations, laws, levies, taxes, etc. My god. Some of the requirements were so absurd they made no sense. The federal stuff was one thing, but the state stuff was the final nail for the whole thing. I thought Australians suffered with red tape, but Florida? Wahahaha, what an eye opener that was.
We are not massive. Plant would have employed about 9 people total only, maybe 10/11, and would have taken a while to expand while we established a pipeline out there. But still, it was local investment, local jobs, and a guy worth a small fortune living locally. Buying houses, spending locally, trying to grow the business locally. This division manufactures.
We pulled the plug though. Why fuckin bother? Im not going to see our personal shit go to the IRS every year, the plant makes no sense for us as a business, only for him personally, and in his personal capacity he loses too much money by living there removing what personal incentive he has.
My partner has since decided to stay in Sydney, and he will fly his Costa Rican wife out to visit the folks more often instead. He is better off just running the holiday visas and maybe buying property. Thats it.
We are going to treat the northern fields like we would Russia, and we are going to work with local partners instead. No operations in the USA, we view the business climate as completely inhospitable.
Take what you want from it, but I expect that we will be thrown into the greedy pile like so many here love to do. Does not matter, if this is the way we felt, I imagine its only a very small example of whats happening on a broad scale.
I was always confident that the USA would come right and have stated that a few times on here before. Lately, my mind has changed a bit I must say. Given what we experienced and what I have seen now first hand?
Not so confident anymore.