It’s bad enough that Obama wants to raise taxes here, but he wants higher taxes worldwide so that you’ll have nowhere to escape from the end results of socialism.
President Barack Obama will use next week’s G8 meeting to organize a community of governments to minimize companies’ legal use of foreign tax laws, according to an aide.
“The president has been focused on international efforts to reduce what is legal tax avoidance, when companies legally use loopholes that exist in our laws and other [countries’] laws to reduce their tax liability,” said Caroline Atkinson, a former spokeswoman at the International Monetary Fund, who is now his deputy at global economic summits.
“We want to avoid tax competition turning into a lose/lose proposition, where counties not only lose revenue but companies make inefficient decisions by locating where they pay the lower taxes or shifting their profits to the lower taxes rather than where it is most productive for them to invest and produce,” Atkinson told reporters at press briefing on Friday. ….
By leveling tax rules, governments would restrict companies’ ability to avoid paying high taxes to the governments where the companies’ facilities are based.
The strategy would transfer billions of dollars from shareholders and investors to governments.
The Treasury Department is already trying “to ensure [international]tax evasion is detected and punished,” Atkinson said.
This is actually a sign of weakness.
Economically attractive nations with minimal regulations, low tax rates and free market-centered economies can not only hold their own businesses, they can draw corporations from other countries to their shores. When a country moves on from trying to entice corporations to trying to keep the businesses they already have from escaping, it’s a sign that they are becoming uncompetitive. Furthermore, this sort of thing NEVER works because the nations that have free market based economies aren’t going to voluntarily raise their taxes to help the more socialistic nations compete with them.
Written by John Hawkins of RightWingNews.com
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