The problem of tech company tax is too well known to spend much time talking about. It’s more than a decade now since I first helped research this story, then in partnership with the Sunday Times. And now, despite all the due notice given to countries around the world since then there is no solution in obvious sight.
He’s not noted that Trump changed US tax law.
Then came the GOP’s corporate tax reform. Under the new law, even if American companies leave those profits outside the U.S., they still get taxed. So the whole game isn’t worth it anymore. It’s all going to get taxed in the U.S., so companies can forget about those chains of offshore companies and all the complications with Ireland, the Netherlands, and so on. Which is exactly what is happening.
As Reuters reports, Google is simply not going to bother with the elaborate “double Irish with a Dutch sandwich” scheme anymore. The cash will flow into the U.S. and be taxed, justly, here as well. It doesn’t matter how you try to finagle matters, U.S. tax will still be due and will still be paid.
This is, by a long, long way, the single biggest closing of tax-avoidance opportunities that anyone has ever managed. And it’s all been done by Trump and Republicans, whose tax reform is decried by those very same liberals who claim to be against tax avoidance. It’s funny how liberals aren’t satisfied with getting what they demanded if it comes from a Republican.
The problem – assuming we agree it was a problem – is already solved, dealt with.