The European Union has shown itself to be a compulsory tax cartel.
Dan Sanchez writes: Taxation is bad enough: two consenting parties arrange a mutually-beneficial exchange, and an interloping third party demands a cut.
What compounded injustice then for a fourth party to enter the scene: a super-state/super-bandit who insists that the shakedown wasn’t big enough. No, the victim must hand over more to the lesser thief, even against the recipient’s will and in spite of his protest!
Thou Shalt Not… Not Steal
Ireland must join the rest of the Union in bleeding the private sector dry.
That is what happened today when the European Commission slapped Apple Inc. with a $14.5 billion bill for back taxes, ruling that Ireland had violated European Union rules by taxing the tech company at too low a rate.
But the Irish government doesn’t want the money! It had promised the low rates decades ago to entice Apple to set up and keep shop in Ireland, bringing the struggling country desperately needed jobs and economic growth. Irish officials are worried that if they renege on that deal, they will risk driving off the geese that lay the golden eggs: Apple, and other businesses as well.
But no, insists the European super-state: sustainably prudent parasitism is not an option. The Irish government must join the rest of the Union in recklessly bleeding its private sector hosts dry until the whole system collapses under its own dead weight. Read the rest of this entry »
…And Paul Ryan is Still Right To Fix It
I selected this article not because of the Paul Ryan budget, but because it has this chart (see below) produced by Veronique de Rugy for the Mercatus Center at George Mason University, that reveals which countries pay what in corporate taxes. We knew the U.S. had among the highest, but like most, I didn’t know the U.S. has the #1 highest. And right behind us are France, Belgium, and Mexico.
I didn’t know that Canada, Iceland, and Switzerland have the lowest. I suspect those countries have fewer rigged policies and armored truck-sized loopholes (managed by corrupt legislators dispensing favors and punishments) and probably enjoy better tax revenues, too, as corporations have far less motive to either move their operations somewhere else, or try to shelter their profits from punitive taxation. Capitol tends to flee high tax regions, and seek lower tax regions. Are Iceland and Canada radical ‘anti-tax’ Tea Party countries? Hardly. The best reason to have an abnormally high corporate tax rate is to insure opportunities for graft and corruption. If a corporation wants tax relief, well, it just needs to know which campaigns to contribute money to.
Veronique de Rugy writes: Chairman Paul Ryan put out the blueprint for his FY2015 budget on Tuesday. I will have more to say about it in the next few days, but first I’ll focus on one idea in his budget: reforming our tax system and, specifically, reducing the U.S. corporate-tax rate from 35 to 25 percent and shifting from a worldwide tax system to a territorial system. These are very good policy proposals.
The extremes of that chart, reflecting 2013 rates, haven’t changed since 2011: National statutory corporate-tax rates among the 34 members of the OECD range from 8.5 percent in Switzerland to 35 percent in the United States.
Despite having the highest national statutory rate, the United States raises less revenue from its corporate tax than the other members of the OECD on average. In fact, the federal corporate-income tax raised just (roughly) 10 percent of total federal tax revenues in 2013.
To make matters worse, yesterday marked a sad anniversary: the second year in a row where the U.S. not only has the highest statutory rate but also has the highest combined rate (39.2 percent) when both the federal and average state rates are added. Japan used to hold the record for combined rates (39.8 percent), until it lowered its combined rate to 36.8 percent in April 2012. Read the rest of this entry »