Investing in the United States

Do you depend on the stock market and Wall Street to take care of you in retirement or to help you meet your financial goals? Do you trust Wall Street to look after the little guy? I wouldn’t count on it.

A recent study by Fair Tax Mark found that Amazon, Facebook, Apple, Netflix, Google, and Microsoft collectively avoided $100 billion in taxes through the use of foreign tax shelters.

Just stay with me to the end… This is not political, but rather an effort to help provide more context for how and why we should be protecting ourselves and our families, because we at TruePoint are taking our own action.

A popular scheme dubbed the “Double Irish With a Dutch Sandwich” involves channeling profits first through an Irish company, then through a Dutch company, and then to another Irish subsidiary headquartered in a location – like Bermuda – with lower or no income taxes.

At a time when the corporate tax rate was 35% (now 21% after 2017 tax reform), Amazon, cited in the study as the most significant tax avoider, paid only about 12.7% in taxes.

As a result, large corporations are parking a tremendous amount of cash offshore. The top 50 U.S. companies have $1.4 trillion in cash offshore.

Just like the politicians wasting valuable time on partisan fighting instead of taking care of matters important to their constituents, these big corporations and every other corporation listed on the stock market don’t have any concern at all about the little guy.

The big companies get all the press. The giant players like Amazon, Facebook, Google, and Apple hog all the airtime on CNBC and Bloomberg, with pundits discussing whether they will hit their earnings expectations or if they are a buy, sell, or hold and what’s next for the giants as if the universe revolved around these companies.

Investors hang on every word, and money and shares constantly change hands as a result. Many investors pour their hearts, souls, and sometimes their life savings into these companies.

It’s all about profits for these companies, and shirking their tax obligations is one big scheme they use to pad their war chests. One thing is for sure – their army of accountants and tax strategies keep them rich while the rest of us pick up the slack.

Keep staying with me here…

Ask yourself this. Who are these companies looking out for? Their employees? Americans?

  • If Amazon and these other companies want the best for you and other Americans, why don’t they bring their profits onshore where it can be used to help Americans?
  • Why don’t they manufacture their iPhones in the U.S.?
  • Why aren’t their call centers in the U.S.?

If they brought their profits onshore, wouldn’t that help our deficit? Of course it would. Think about it.

There would also be less talk of budget deficits and revenue shortfalls and how to make up for these deficiencies by squeezing more out of the individual taxpayer like you and me.

And what about all that income that stays offshore to avoid American taxes?

  • It’s not being used to create American jobs that’s for sure.
  • It’s not being parked in American banks to lend to American companies.
  • It’s not being used to strengthen American infrastructure.
  • It’s not being used to reduce our government’s reliance on debt to pay for its expenses.

The only ones benefiting are foreign individuals and companies. Imagine the number of jobs that could be created and maintained and the number of investments that could be funded in the U.S. if the money was repatriated instead of sitting offshore or worse, reinvested on foreign soil.

So many companies pride themselves on corporate social responsibility, and many have touted their “green” initiatives, but what about their social responsibility to the American worker?

Get ready for the kicker. Even as the top 50 U.S. companies kept $1.4 trillion out of American hands, those same companies spent $2.6 billion on lobbying to receive nearly $11.2 trillion in federal support in the shape of loans, loan guarantees or bailouts to make up for their cash deficit at home.

Luckily, the American investor does have a choice as to where their funds are invested, and blindly following these large corporations may not always be the right choice for our hard earned dollar.

If leaving a lasting legacy for your children and grandchildren is important to you, consider investing in local, private companies that don’t use sophisticated offshore strategies to avoid taxes.

You can be assured that with these local, private companies, your funds will be invested in the U.S. to benefit local economies.

TruePoint Capital invests in real assets in the U.S. that provides housing, lifts distressed communities, provides work for contractors, property managers, real estate professionals, maintenance personnel, and contributes to local, state and federal tax coffers and much more, and for this reason, TruePoint Capital and our partners are able to take advantage of perfectly, legal tax strategies that allow us to keep more of our own hard earned dollar by providing all this value to the communities that we invest in.

We cannot directly control how the money flows in our great country, but we can take control of how our own cash flows. We can put legal measures in place that will help us keep more of our own paychecks by taking advantage of things like bonus depreciation through investing in real estate. This is real!

Find out more today how you can invest locally and keep jobs and revenue in America for the benefit of Americans. Let’s get on a call and discuss more about how you can build your own tax strategy while still taking care of you and your family.

Take control of your portfolio and invest with intention.

Kyle Jones

About the author

Investor, writer, speaker, and founder. Kyle Jones, key principal of TruePoint Capital, is accountable for investment decisions, asset management, and overseeing financial activities, operations, and investor relations. Kyle additionally is a Global Sales Leader for a large Fortune 100 technology company. Kyle received a Bachelor of Science degree from Texas State University – San Marcos.