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<blockquote data-quote="DanWiggins" data-source="post: 588833" data-attributes="member: 544847">It would be nice if Factcheck.org could at least read and understand their own postings...In Chile, it&#039;s 17%.&nbsp; But let&#039;s say we&#039;re in Indonesia, just 0.2%.&nbsp; Wow, only pay 0.2% tax!But wait...So, if I bring even a single cent back into the US, I pay the 30% tax the US imposes as well...&nbsp; In the case of indonesia, you&#039;re paying 30.2%, higher than the effective tax rate for the US.So in actuality running an overseas operation causes one to pay MORE tax.&nbsp; You pay tax in the country where the activity takes place, then any profits you bring back are taxed by the US government.So, where exactly IS the tax break from being located overseas?&nbsp; I know it&#039;s one thing to talk about it, it&#039;s quite another to actually SEE it...Note that if I leave the money overseas and reinvest it in the business, then I don&#039;t pay the tax in the US.&nbsp; Of course, if I spend all my profit I earn in the US, I don&#039;t pay any tax here, either...&nbsp; You&#039;re taxed on net profit, not revenue.&nbsp; Spend all your profit, you end up with zero profit and hence zero taxes.Dan WigginsAdire Audio</blockquote>

[QUOTE="DanWiggins, post: 588833, member: 544847"] It would be nice if Factcheck.org could at least read and understand their own postings... In Chile, it's 17%. But let's say we're in Indonesia, just 0.2%. Wow, only pay 0.2% tax! But wait... So, if I bring even a single cent back into the US, I pay the 30% tax the US imposes as well... In the case of indonesia, you're paying 30.2%, higher than the effective tax rate for the US. So in actuality running an overseas operation causes one to pay MORE tax. You pay tax in the country where the activity takes place, then any profits you bring back are taxed by the US government. So, where exactly IS the tax break from being located overseas? I know it's one thing to talk about it, it's quite another to actually SEE it... Note that if I leave the money overseas and reinvest it in the business, then I don't pay the tax in the US. Of course, if I spend all my profit I earn in the US, I don't pay any tax here, either... You're taxed on net profit, not revenue. Spend all your profit, you end up with zero profit and hence zero taxes. Dan Wiggins Adire Audio [/QUOTE]

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