Where does all the money American companies abroad make go?
I see a lot of Mc Donald's and other companies in China for instance but we are having a hard time here. Pleas serious answer only Ok I am getting it so when jobs are outsourced Americans lose altogether, no taxes come back right?
Elections - 9 Answers
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1 :
To the HQ in America which likely does not pay taxes because of all the loopholes available.
2 :
It stays within the company. It also goes into investors pockets. These American companies are registered in the stock market and anyone can purchase their stocks and "own" a portion of McDonalds, Wendy's, Enron etc. If they make money, their stock will rise up and the investors will collect dividends.
3 :
the corporate people who work for mcDonalds and others keep all the profits for themselves. they are known as the Haves.
4 :
After all the expenses and taxes, into the shareholder's pockets.
5 :
into the executives pockets..
6 :
it goes to the wealty investors
7 :
CORRUPT POLITICIANS!
8 :
You are on to something!!!! Like if Obama taxes the Big Business out of the States then how is he going to pay for all the spending he proposes without taxing the Middle Class and Poor?
9 :
They are accounted as revenues to the parent company. If the business is situated in a low tax zone overseas or a tax-haven, then the company's profit increases. If this money is not repatriated back to the US (i.e, not brought back to the US) or given as dividends to the shareholders, then taxes on these can be deferred, which means no money comes as taxes to the US. We need a trade expert to talk more about this but here's the source below for more information.
