Quote:
Originally Posted by southparkcpa
It's not a loophole.
|
Sure it is.
President Ronal Reagan signed a law to prevent corporations sitting on this much cash. He knew that his 'trickle down economic policies' were a complete fraud if this was allowed. If you don't tax the wealthy and allow them to sit on the cash there is no trickling down. There is just economic stagnation.
http://www.reuters.com/article/2012/...86F0GK20120716
Quote:
A business holding more cash than its operations reasonably require can be hit with a 15 percent levy under Section 531 of the Internal Revenue Code, on top of the 35 percent corporate income tax. The Tax Court even devised a mechanical test in 1965 for how much is too much.
Historically the IRS has levied only privately owned firms or publicly traded companies with few shareholders. But Internal Revenue Code Section 531 applies to all corporations. President Ronald Reagan signed Section 532 (c), which made that explicit, though with an exception for untaxed offshore profits.
|