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A comment on Janet Yellen to call for global minimum corporate tax rate of 21%. Parent comment

Re:Janet Yellen to call for global minimum corporate tax rat... by fastball on Monday April 05, 2021 @01:36PM (#26701971)
How is Delaware a tax haven?
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Re:Janet Yellen to call for global minimum corporate tax rat... by yboris on Monday April 05, 2021 @02:29PM (#26702715)
https://www.theatlantic.com/business/archive/2016/10/dont-bl...

> Delaware doesn’t tax “intangible assets,” and this encourages companies to move parts of their business to Delaware to avoid taxes in other states. This has led to Delaware being labeled a “tax haven.”

See also: https://www.investopedia.com/articles/personal-finance/09251...

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Re:Janet Yellen to call for global minimum corporate tax rat... by gruez on Monday April 05, 2021 @04:24PM (#26704191)
I don't get it. I thought corporations were taxed on profits and not assets? How do tangible/intangible assets factor into this?
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Re:Janet Yellen to call for global minimum corporate tax rat... by logifail on Monday April 05, 2021 @04:36PM (#26704354)
> I thought corporations were taxed on profits and not assets? How do tangible/intangible assets factor into this?

Company transfers intangible asset to subsidiary in Delaware, "trademark or naming rights"[0], its locations elsewhere pay the Delaware subsidiary for the use of those rights, lowering their profits(?), and the Delaware subsidiary doesn't have to pay tax on that income and resulting profit?

[0] https://www.theatlantic.com/business/archive/2016/10/dont-bl...

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Re:Janet Yellen to call for global minimum corporate tax rat... by gruez on Monday April 05, 2021 @04:48PM (#26704511)
That'd make sense if delaware had a low corporate tax rate, but it doesn't[1]. If you wanted to relocate your profits to a low tax jurisdiction, you'd want something like north carolina (2.5%) not delaware (8.7%).

[1] https://taxfoundation.org/state-corporate-income-tax-rates-b...

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Re:Janet Yellen to call for global minimum corporate tax rat... by logifail on Tuesday April 06, 2021 @03:29AM (#26709072)
...because [under the "loophole" / arrangement we're discussing] Delaware doesn't tax (any of!) the income from those intangible assets[0]?

https://udel.edu/~pollack/Downloaded%20SDP%20articles,%20etc...

> if delaware had a low corporate tax rate

Hard to set the corporation tax rate (for income on intangible assets) any lower than zero.

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