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Politics : Mainstream Politics and Economics -- Ignore unavailable to you. Want to Upgrade?

To: Broken_Clock who wrote (48300)	7/10/2013 12:27:14 PM
From: TimF	Respond to of 85487

Lower US corporate tax rates, so that they aren't close to the highest in the world (or perhaps just simply the highest, I haven't checked recently) and you get a lot less of that avoidance (and more corporate tax revenue). Also on much of that income taxes are paid, just not American taxes. And avoidance isn't malfeasance. "Anyone may arrange his affairs so that his taxes shall be as low as possible; he is not bound to choose that pattern which best pays the treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the Courts have said that there is nothing sinister in so arranging affairs as to keep taxes as low as possible. Everyone does it, rich and poor alike and all do right, for nobody owes any public duty to pay more than the law demands." — Judge Learned Hand, U. S. Court of Appeals, 1935. Sales tax on school supplies: 10%. Not in very many places. If your state's sales tax is too high, lobby your state legislature to change it. Sales tax on $1,000,000,000,000,000 of financial securities: ZERO. As it should be. Financial transactions are not like buying a pencil. Money is moved around multiple times for very slim margins. The distortive effects of taxes would be significant, and in practice all such a tax would be likely to do is to drive the trading somewhere else, losing jobs and revenue for the jurisdictions that raise the tax. Taxes are paid on the eventually realized profit.