Starbucks, under fire in UK, seeks U.S. tax breaks

[dipsydoodle]

Source: Reuters

(Reuters) - Coffee chain Starbucks Corp, which has faced criticism for its low tax rate in Britain, has sought new tax breaks in the United States in comments to a congressional committee.

As U.S. lawmakers move closer to possibly overhauling the tax code for the first time since 1986, scores of companies and interest groups have submitted comments to the tax law-writing Ways and Means Committee in the U.S. House of Representatives.

Ways and Means Chairman Dave Camp, a Republican, has vowed to introduce tax code overhaul legislation this year.

Like other companies with substantial foreign profits, Starbucks wants profits made outside U.S. borders to be spared, in whole or in part, from the U.S. corporate income tax. Starbucks expressed support in its comment letter for a territorial tax system that would permit this.



Read more: http://www.democraticunderground.com/?com=post&forum=1014

[Bully Taw]

1. more corporate greed

selling coffee for $5 a pop, i know the money must be tight at Starbucks!

[cosmicone]

2. Actually, a territorial system is fair

US is one of the few countries that taxes world-wide income if brought into the US. If a territorial system were to be adopted, some $12 trillion in unrepatriated earnings would come into the US and be invested here instead of foreign companies, thus creating employment and an increased tax base domestically.

This is different from the despicable supply-side system. Tax US earnings more but don't tax foreign earnings if brought back and invested in the US.