Virgin Galactic’s SpaceShip II has joined SpaceShip I in California. It is ready to launch in the USA. Why here and not in lovely England?
The VAT (value added tax) is a good reason not to be in the UK or anywhere in Europe. The VAT destroys business like no other tax. It seizes the working capital required for growth. The USA is a value added tax haven and the Europeans love it!
- Yes, California is anti business and high income tax. However nothing destroys working capital like the Value Added Tax. Imagine borrowing a billion dollars to build a new spaceship. Then you find out that just to have the right to build the spaceship you owe $200 million tax.
- California and the USA has no VAT. California also has no sales tax for most research and development programs.
msnbc.msn.com reports the following:
A new Virgin America A320 jet, aptly named “My Other Ride Is a Spaceship,” flies in tandem with the SpaceShipTwo rocket plane and its mothership over the Golden Gate Bridge on April 6.
The aircraft landed at San Francisco International Airport. They are the first planes to arrive at the new $388 million, 640,000-square-foot Terminal.
SpaceShipTwo is expected to begin rocket-powered suborbital test flights sometime in this. The spaceships will launch from the Mojave Air and Space Port near Los Angeles.
- Great International Tax Planning looks at the benefits of each country. Next, you place your business activity that provides the best benefit. Just because you make a spaceship in California does not mean its income will be California taxable. Remember it is a spaceship… it can travel anywhere!
If you are interested in exploring international tax strategies for your business, I invite you to email me, Brian Dooley, CPA, at [email protected]