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I'd have to do a bit more digging down to see the implications of this, but what if we taxed operating cash flows of corporations, net of cash from investing activities in the US at a low rate? I really can't think of very many loopholes or ways around this since most businesses wouldn't want to do whatever possible to lower their cash flows to avoid a tax bill, that would be a really big mistake since ultimately "Cash is king." If you've been sustaining a net loss for 10 years and avoiding taxes, but still have a very good cash position year after year, most people "in the know" won't give it a second thought.
For the non business people on here, operating cash flows is the actual cold hard cash that your company gets as a result of your normal business operations, this is not "income." Cash from investing activities is typically the cash that goes out to invest in things like equipment, plants, machines, etc.
What we could do is any "investing" that goes on within US borders would be allowed to be netted against operating cash flows for operations world wide. I also wouldn't be opposed to being allowed to deduct depreciation from capital assets either.
It might need to be changed up a bit, but thoughts?
Not to be insulting, but can we have a brainstorming session with someone who understands even basic accounting?
Since things like this statement...
Quote:
Originally Posted by VTHokieFan
I also wouldn't be opposed to being allowed to deduct depreciation from capital assets either.
...show a complete ignorance of current tax law and accounting. As you already can deduct the cost of a capital asset by depreciating it every year (included is a link to the IRS explanation on depreciation). It's impossible to have a discussion about changes, and the effects, of what that person wants to make when that person doesn't know or understand what is in place now.
Not to be insulting, but can we have a brainstorming session with someone who understands even basic accounting?
Since things like this statement...
...show a complete ignorance of current tax law and accounting. As you already can deduct the cost of a capital asset by depreciating it every year (included is a link to the IRS explanation on depreciation). It's impossible to have a discussion about changes, and the effects, of what that person wants to make when that person doesn't know or understand what is in place now.
No you can't. But I'm a CPA licensed in two states. Based on your response, you did not understand what I said at all. I'm well aware you can deduct depreciation. There was nothing in my original post that indicated that I didn't know that. If you've ever done a statement of cash flow, which I have done, you would know that you add Depreciation back to net income when calculating operating cash flows, since depreciation isn't a cash item. What I was saying, is that under a cash flow model, you would be able to exclude depreciation for tax purposes, so that your operating cash flow is lower.
Raise the tax on products produced abroad and imported back into the United states. I would also end China's most favored Nation Status along with NAFTA.
Allow industry to compete here at home and unemployment will decrease. Jobs that pay more than a min wage will be produced and you have your cash cow.
No you can't. But I'm a CPA licensed in two states. Based on your response, you did not understand what I said at all. I'm well aware you can deduct depreciation. There was nothing in my original post that indicated that I didn't know that. If you've ever done a statement of cash flow, which I have done, you would know that you add Depreciation back to net income when calculating operating cash flows, since depreciation isn't a cash item. What I was saying, is that under a cash flow model, you would be able to exclude depreciation for tax purposes, so that your operating cash flow is lower.
Uh huh, sure...and I am an astronaut with 3 PhD's that lives on Mars.
That's the great thing about the interent, you can say whatever you want to be.
Just like in your case, where you claim to know what you're talking about.
Yeah, can you find where I claim that and I try to bully people with an argument from authority? I am a human being, just a fallible as everyone else. I don't, however, attempt to bully people with the argument from authority therefore don't question what I have to say.
Just like your other claims I can find no evidence it exists. Good job making things up again.
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