CNN Money reports that first generation 3 D Printing is coming to a home near you. Shoes, cookies and guns are just a few of the popular items that can be beamed into your home. Recently, it was announced (on this link) that 3D Printing with Embryonic Stem Cells Paves Way for Artificial Organs.
America’s ancient tax laws (designed for commerce of the 1930′s) are incapable of taxing cloud commerce.
International taxes will be moving into a new world of tax plans and tax planning. The virtual world provides unique cloud tax planning opportunities (you can learn more about saving taxes with the cloud tax planning with my book, on this link to Amazon).
America’s international tax laws are based upon the shipping of tangible goods. If -the foreign manufacturer has an office in the US, then the IRS gets to tax US profit.
But what if they could sale, at retail, without having an office here. What if they could “beam” to you their product.
Take cookies. We all love Mrs. Fields cookies. Pretend that Mrs. Fields placed their server in an Isle of Man company. You log into their web site and order a dozen of your favorite. Soon, your 3D laser printer smells yummy.
Now this is great for you. Cookies without ever leaving your home. Meanwhile, the Isle of Man company just made U.S. source income tax free.
Imagine, the drug manufacture downloading the printing code to your hospital for a new organ. Your doctor merely logs into the manufacture’s web site and selects the organ you need.
When a computer provides services, the income is foreign source (and not US taxable) if the computer is located outside of the United States.
By the way, the controlled foreign corporation rules do not apply Mrs. Fields Isle of Man company is selling to unrelated persons. In this example, the service is sending commands to your 3-D Printer.
Supply versus demand. The sale price of goods (and services) is based upon supply versus demand. With product beaming, the supply is infinite. You will save money as the cost of products drop.
But there is more. Competition might be infinite, too. I could start Brian Dooley’s Cookies in the Isle of Man. All I would need is a the right software. I can tell you, I make the best Irish Oatmeal cookies. My price will always be half of Mrs. Fields.
Here is some more information on 3 D printers.
NASA is starting to beam tools, such as adjustable wrenches, to the space station. 3-D Printers can also use plastic, cement and metals to make their product.
Update: Nokia has published the files necessary for people to 3D print their own Nokia Lumia 820 cases, on this link. Yes. You merely go on line and print a new case in the color you want.