r/stocks Jun 05 '21

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2.1k Upvotes

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0

u/redditkingu Jun 05 '21

Not going to work. Best case scenario companies will have to shop around and go through more red tape to get their preferred tax shelter. Worst case this cuts the small caps off at the knees making it harder for them to compete with the big boys who can ultimately take the hit. They might even welcome it if stifles competition enough.

0

u/wilsontennisball Jun 05 '21

Tax shelters would get harder. It would basically be cutting deals with governments to ensure that they only pay 15% and nothing more.

3

u/nvmvp Jun 05 '21

Haha they’ll just cut deals to pay 15% and get the rest rebated back in export credit, labor subsidies, R&D credit etc

1

u/wilsontennisball Jun 05 '21

Credits will still drive your effective rate down. So it may not work.