tag:blogger.com,1999:blog-7697320.post3927206460640373715..comments2023-04-01T04:12:01.589-06:00Comments on The Daily Fuel: A Reply to "Facts on Taxes"The Daily Fuelhttp://www.blogger.com/profile/12636581068441603099noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-7697320.post-21425434855783382692011-08-01T16:33:01.029-06:002011-08-01T16:33:01.029-06:00Hi John, good to have you back.
The problem with ...Hi John, good to have you back.<br /><br />The problem with your reasoning is that the largest corporations already do not pay any taxes in the United States, thanks to all the loopholes in the tax code written to their advantage. So I am not sure that any significant amount of money would be repatriated. The U.S.A. is already a tax haven for large businesses.<br /><br />The simplest way to help labor in the United States, in my opinion, would be to say: if you keep jobs in the United States, you can avail yourself of all the loopholes our crazy tax code allows. If you close a factory here to reopen it somewhere else, you lose access to all loopholes and you play a flat 35% tax on ALL of your revenues. Smells of protectionism, but it beats globalization in my book.The Daily Fuelhttps://www.blogger.com/profile/12636581068441603099noreply@blogger.comtag:blogger.com,1999:blog-7697320.post-19951412664866634582011-08-01T11:06:35.279-06:002011-08-01T11:06:35.279-06:00Kennedy reduced the maximum individual tax bracket...Kennedy reduced the maximum individual tax bracket<br />rate from 91% to 70%, rates which were<br />draconian and were a tremendous incentive for rich people to move money out of the country. That is apples and<br />oranges compared to today's relatively<br />low maximum rate of 35%:<br /><br />http://robertreich.org/post/257309173<br /><br />Also a table of max and min tax rates<br />can be found here:<br /><br />http://ntu.org/tax-basics/history-of-federal-individual-1.html<br /><br />It was 50% in the Reagan years. Reagan reduced the maximum tax rate to 28%<br /><br />So, yes, reducing taxes when they were exhorbitantly high was a boost to the economy, but we've "been there and done that" already. <br /><br />The effect of a high rate of taxation is that people find ways of not paying the tax. <br /><br />What would be better is to construct a way for corporations to come back from offshore and pay some modest tax, instead of nothing at all. Of course, corporations simply pass on taxes as costs to the consumer, so you really are taxing ordinary people in that situation.<br /><br />My plan for that would be<br />1) make the US a tax haven<br />2) create some penalty for being<br /> offshore<br />3) and once you have the corporations<br /> back in the US, then slowly crank up<br /> the tax, but again, don't get too greedy, because taxing corporations at too high a rate simply encourages them to subvert the system.John Stockwellhttps://www.blogger.com/profile/03496308585336775569noreply@blogger.com