This is why corporate taxes make no sense in a global economy
Do a Google search on "Two Global Companies Just Moved for Tax Reasons" and read the article. The fact is that people can headquarter from anywhere in the world like Ireland where corporate taxes are 12.5%. Eventually all companies will be incorporated out of the country with the lowest tax rates just like most US corporations are incorporated out of New Jersey for other reasons. They are just taking it to the next level and with the US having the highest corporate tax rates they are going to leave the US for sure. They should just accept the fact that the corporate tax amounts to nothing more than a sales tax and eliminate it and replace it with a sales tax. That way we improve our competitiveness abroad and at home because our products will get sold overseas with no associated taxes but products from abroad get taxed here. Is this so hard to understand? How can it be explained any simpler? I don’t understand why so many people here in the US don’t get it yet our foreign competition seems to be getting it and using it against us. Are we just dumber than they are?
I would be all for a VAT as it would allow my taxes to go down but the 47% that pay no taxes will fight this. You cannot escape a VAT. There is no way you can deduct your way out of it. However everyone pays and there are many with no skin in the game that want to keep it that way. That way they can keep demanding more government benefits and feel no negative ramifications as a result. This allows them to keep demanding more because there is no reason not to. As soon as you make them pay for their own benefits they will be #$%$ off. You may as well ask them to vote to become slaves. They won’t go for it. Actually, the slave idea isn’t a bad one. First you make them into slaves and pass a law that slaves can’t vote and then the problem is solved once and for all. Who becomes a slave? Anyone who has been receiving government benefits for more than 10 years. It would also solve our illegal immigration problem as we can turn them into slaves as well. The simplest solution is usually the best solution I say. Bring back slavery.