...Twitter (and google, facebook, etc.) use a bunch of complex tax structures in different countries to legally avoid paying corporate income tax.
Yes, many companies use complex tax structures to avoid paying US corporate income taxes on non-US profits. So what? They don't consume any US government services either, and Fred Wilson paid appropriate taxes to whatever nation Twitter Europe lives in.
Similarly, my employees (all located here in India) don't pay any US income taxes. Is there some reason they should?
GE paid a negative percentage of taxes because they lost money in prior years and used a loss carryforward.
The loss carryforward is a necessary hack to the system to prevent taxation from penalizing businesses with volatile income streams. Consider two investments - one makes $10 with P=1. Another makes +$60 with P=0.5, $-40 with $P=0.5. Without the loss carryforward, the volatile company would pay an average tax rate of 45% (15% of $60 when they make money, 0% of -$40 when they lose money).
Yes, many companies use complex tax structures to avoid paying US corporate income taxes on non-US profits. So what? They don't consume any US government services either, and Fred Wilson paid appropriate taxes to whatever nation Twitter Europe lives in.
Similarly, my employees (all located here in India) don't pay any US income taxes. Is there some reason they should?
GE paid a negative percentage of taxes because they lost money in prior years and used a loss carryforward.
The loss carryforward is a necessary hack to the system to prevent taxation from penalizing businesses with volatile income streams. Consider two investments - one makes $10 with P=1. Another makes +$60 with P=0.5, $-40 with $P=0.5. Without the loss carryforward, the volatile company would pay an average tax rate of 45% (15% of $60 when they make money, 0% of -$40 when they lose money).