Tax All Tax-Haven Income Now

President Trump says multinational corporations have stashed $4 trillion (instead of the commonly mentioned $2.7 trillion) offshore, untaxed. Here are three reasons — Politics, Practicality, and Politics — why all that income should be “deemed repatriated,” that is, taxed immediately.

Politics: The political case is here – the big beneficiaries of repatriation amnesty opposed Trump. Continue reading Tax All Tax-Haven Income Now

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90-day rule for California’s 15-percent retail marijuana tax

Here’s how the California 15-percent retail marijuana tax is supposed to work:

[UPDATE:  The 90-day rule does not seem properly calibrated for outdoor growing, where an annual harvest presumably could get sold over 365 days — as consumer demand is presumably relatively steady all year.  To allow the tax to apply to the actual retail price, retailers would need to buy from sellers on a kind of Just In Time basis — not accumulating inventory beyond what they will sell in 90 days.]

Once a cultivator, manufacturer or distributor sells to a retailer, a 90-day clock starts running. The tax amount due depends on which one of two “Cases” fits the facts. Continue reading 90-day rule for California’s 15-percent retail marijuana tax

Arm’s length marijuana tax rule in California — superseded

Don’t read this whole post.

Instead, a corrected view of how California’s retail tax works is here (at https://newrevenue.org/2017/10/27/90-day-rule-for-californias-15-percent-retail-marijuana-tax/).  So go there.

The superseded and incorrect material below, for the record, reflects my thrashing around before I understood what California was even trying.  Why anyone would want to read about that thrashing, I can’t imaginge, but I don’t delete much.  Nobody’s perfect. Continue reading Arm’s length marijuana tax rule in California — superseded

State marijuana taxes today

UPDATE:  This chart is valid as of June 26, 2018; a more comprehensive chart is at https://newrevenue.org/2018/06/06/cnr-recommends-cannabis-tax-chart/.

Producer (medical, too, if *bolded*) Retail (medical, too, if *bolded*) Standard sales tax? Tax break for medical marijuana? Ratio of medical tax to adult use tax
Alaska *$50/oz., unindexed* 0 0 0 100%
CA *$9.25, indexed* *15%* 7.5% on recreational 7.5% >67%
CO 15% (often weight proxy) 15% 2.9% on medical 27.1% 10%
Maine No 10% 5.5% on medical 4.5% 55%
Mass No 13.75% 6.25% on recreational 20% 0
Oregon No 20% 0 20% 0
Nevada *Weight in lieu of 15%* 10% 6.85% on recreational 15% 41%
WA No *37%* 6.5% on recreational 6.5% 85%

This chart reflects my understanding as of 18 October 2017, and reflects recent changes in CO, MA, NV, and WA.  Comments and corrections welcomed.  A tweeted version overlooks Alaska’s full taxation of medical cannabis, corrected here by bolding $50/oz., unindexed above. Continue reading State marijuana taxes today

Full Repatriation Now

Why we have a right to tax deferred off-shore income, beyond allowing shareholders the limited liability of a U.S. corporation, by Steve Shay, building on the analysis of my hero, Charles I. Kingson, in The Great American Jobs Act Caper, http://heinonline.org/HOL/LandingPage?handle=hein.journals/taxlr58&div=17&id=&page= (paywall).

“The primary businesses of [the 10 biggest beneficiaries of the repatriation tax amnesty windfall] rest on one or more of: (i) technology patents, copyrights, and trademarks created under the protection of U.S. laws; (ii) U.S. food and drug approvals authorizing access to and assurance to U.S. healthcare consumers; (iii) the internet developed by the U.S. government and transitioned to private hands; or (iv) leases of valuable rights to U.S. oil and gas natural resources. All of these are fruits of U.S. public goods and legal infrastructure developed and maintained with U.S. taxpayer dollars. Yet, these companies have been permitted to routinely use transfer pricing and stateless income planning techniques to pay extraordinarily low rates of tax on vast swathes of their income—and now the plan is to give them an amnesty rate on pre-effective date earnings?”

https://www.finance.senate.gov/imo/media/doc/Shay%2010-3-17%20SFC%20Testimony%20final%209-30.pdf