How not to address tax evasion
The corporate tax rates in the U.S. are the highest in the industrial world. The tax code is ridiculously complex. Business decisions are made half based on what is good for the business and half based on what enables the company to reduce taxes.
Is it any wonder that companies are leaving America to evade taxes? Companies are using a process called inversion to transform themselves from American companies to foreign companies, moving to countries with lower taxes.
The ones that aren't leaving are investing money made off shore into plants and R&D in other countries because taxes on bringing the money back to the US make that impossible.
So what do you do to stop this exodus?
Well Hilary Clinton's idea is to make the tax code worse not better. She wants to create a penalty to deter companies from leaving the US.
Gee whiz. Great idea. Don't take the simple approach of making the tax code simpler and lowering taxes. Oh no, keep the taxes high to keep the incentive for companies to leave and then just make it so they have to jump through a few more hoops to get out of the country.
The way to create more jobs and more tax revenues is to help businesses grow and expand in the US. To do that, the government needs to remove barriers to bringing dollars from overseas back into our country and we need to reduce taxes on companies to a level equal to or lower than other countries.
Want proof? Look at how Ireland and India expanded. Both used lower taxes to dramatically transform their economies.
Is it any wonder that companies are leaving America to evade taxes? Companies are using a process called inversion to transform themselves from American companies to foreign companies, moving to countries with lower taxes.
The ones that aren't leaving are investing money made off shore into plants and R&D in other countries because taxes on bringing the money back to the US make that impossible.
So what do you do to stop this exodus?
Well Hilary Clinton's idea is to make the tax code worse not better. She wants to create a penalty to deter companies from leaving the US.
Gee whiz. Great idea. Don't take the simple approach of making the tax code simpler and lowering taxes. Oh no, keep the taxes high to keep the incentive for companies to leave and then just make it so they have to jump through a few more hoops to get out of the country.
The way to create more jobs and more tax revenues is to help businesses grow and expand in the US. To do that, the government needs to remove barriers to bringing dollars from overseas back into our country and we need to reduce taxes on companies to a level equal to or lower than other countries.
Want proof? Look at how Ireland and India expanded. Both used lower taxes to dramatically transform their economies.
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