High Taxes, Abusive Enforcement.....
Aug 6, 2014 19:40:25 #
http://www.newsmax.com/Finance/IRS-US-tax-foreign/2014/08/06/id/587148/?ns_mail_uid=84145381&ns_mail_job=1580478_08062014&s=al&dkt_nbr=v9hfe6td
High Taxes, Abusive Enforcement Causing Businesses, Citizens to Flee America
President Obama, as promised, is changing America. High taxes and abusive enforcement are compelling businesses and ordinary citizens to leave the country altogether.
The United States has much higher corporate tax rates than other industrialized countries do, and increasingly, the IRS uses more aggressive enforcement tactics than foreign tax authorities use.
The United States stands alone among industrialized countries by requiring U.S. businesses to pay taxes on profits from overseas operations and investments in addition to the taxes paid to foreign governments.
Of course, what American corporations actually pay varies, thanks to many exemptions, deductions and provisions to delay taxes. However, the average combined U.S. and foreign tax burden on profits is approximately 30 percent, whereas the average for foreign rivals is approximately 23 percent.
Entrepreneurs pay some of the highest tax rates in the world on unincorporated U.S.-based businesses. Regardless of where income is earned, they often pay federal, state and local taxes in excess of 50 percent, and they must pay both U.S. and foreign taxes on overseas income.
Ordinary citizens permanently living and working abroad also must pay U.S. and foreign taxes and face burdensome dual filing requirements and abusive penalties. U.S. tax laws can impose penalties of more than $1 million on unpaid taxes of as little as $20,000.
U.S. bank reporting requirements to combat terrorism and tax evasion are so much more burdensome than those in European countries are, and they impose such terrible penalties for unintentional reporting errors that foreign banks will not permit smaller U.S. companies and citizens to open checking accounts.
Imagine trying to run a small sales organization or live and work in Rome without a local banking account to pay bills.
The U.S. tax system is so burdensome and arbitrary that a 2013 study undertaken by a European think tank ranked it 94th out of 100 countries, right after Zimbabwe, for its impact on business competitiveness.No wonder the U.S. economy is growing at half the pace as during the Reagan-Clinton years and creating about one-sixth the jobs.
Recent IRS abuses of American businesses, taxpayers and nonprofits for political views and contributions and Justice Department reluctance to prosecute malefactors only add to perceptions that the U.S. tax system makes America no place to do business. And increasing numbers of businesses and individuals are making that choice.
American corporations are merging with foreign competitors for the explicit purpose of locating corporate headquarters and tax residences outside the United States. These so-called tax inversions started as a trickle in the 1990s, but are increasing. Activist investors are pressuring U.S. corporate executives to maximize stockholders after-tax profits and to shield stockholders from IRS and Justice Department enforcement abuses.
Similarly, private citizens living abroad unable to obtain bank services, faced with huge tax and compliance costs and the risk that even a hangnail error or whispered politically incorrect view could put them in the crosshairs of the IRS are disavowing their U.S. citizenship.
For private citizens, the costs of leaving America for good are quite high. Those include discriminatorily higher estate taxes for heirs who remain U.S. citizens and arbitrarily higher taxes on the sale of property and securities.
Democrats and Republicans alike say they want tax reform, but Obama is unwilling to reduce the overall tax burdens. He only wants to move around and reduce certain deductions but maintain or increase revenue.
More and more businesses and citizens will still want to leave America. And Congress appears not to have the courage to take on Americas KGB the IRS.
High Taxes, Abusive Enforcement Causing Businesses, Citizens to Flee America
President Obama, as promised, is changing America. High taxes and abusive enforcement are compelling businesses and ordinary citizens to leave the country altogether.
The United States has much higher corporate tax rates than other industrialized countries do, and increasingly, the IRS uses more aggressive enforcement tactics than foreign tax authorities use.
The United States stands alone among industrialized countries by requiring U.S. businesses to pay taxes on profits from overseas operations and investments in addition to the taxes paid to foreign governments.
Of course, what American corporations actually pay varies, thanks to many exemptions, deductions and provisions to delay taxes. However, the average combined U.S. and foreign tax burden on profits is approximately 30 percent, whereas the average for foreign rivals is approximately 23 percent.
Entrepreneurs pay some of the highest tax rates in the world on unincorporated U.S.-based businesses. Regardless of where income is earned, they often pay federal, state and local taxes in excess of 50 percent, and they must pay both U.S. and foreign taxes on overseas income.
Ordinary citizens permanently living and working abroad also must pay U.S. and foreign taxes and face burdensome dual filing requirements and abusive penalties. U.S. tax laws can impose penalties of more than $1 million on unpaid taxes of as little as $20,000.
U.S. bank reporting requirements to combat terrorism and tax evasion are so much more burdensome than those in European countries are, and they impose such terrible penalties for unintentional reporting errors that foreign banks will not permit smaller U.S. companies and citizens to open checking accounts.
Imagine trying to run a small sales organization or live and work in Rome without a local banking account to pay bills.
The U.S. tax system is so burdensome and arbitrary that a 2013 study undertaken by a European think tank ranked it 94th out of 100 countries, right after Zimbabwe, for its impact on business competitiveness.No wonder the U.S. economy is growing at half the pace as during the Reagan-Clinton years and creating about one-sixth the jobs.
Recent IRS abuses of American businesses, taxpayers and nonprofits for political views and contributions and Justice Department reluctance to prosecute malefactors only add to perceptions that the U.S. tax system makes America no place to do business. And increasing numbers of businesses and individuals are making that choice.
American corporations are merging with foreign competitors for the explicit purpose of locating corporate headquarters and tax residences outside the United States. These so-called tax inversions started as a trickle in the 1990s, but are increasing. Activist investors are pressuring U.S. corporate executives to maximize stockholders after-tax profits and to shield stockholders from IRS and Justice Department enforcement abuses.
Similarly, private citizens living abroad unable to obtain bank services, faced with huge tax and compliance costs and the risk that even a hangnail error or whispered politically incorrect view could put them in the crosshairs of the IRS are disavowing their U.S. citizenship.
For private citizens, the costs of leaving America for good are quite high. Those include discriminatorily higher estate taxes for heirs who remain U.S. citizens and arbitrarily higher taxes on the sale of property and securities.
Democrats and Republicans alike say they want tax reform, but Obama is unwilling to reduce the overall tax burdens. He only wants to move around and reduce certain deductions but maintain or increase revenue.
More and more businesses and citizens will still want to leave America. And Congress appears not to have the courage to take on Americas KGB the IRS.
Aug 6, 2014 21:25:14 #
It is time for a flat tax. Nothing else can fix our problem. Any changes by these so called experts will only work to their advantage as it always has in the past.
Jan 10, 2015 06:03:39 #
It has not even been two months since we v**ed the bums out of office, and replaced them with republicans. Republicans who said they would fight for us in Washington!! Republicans who said that the the lower classes of our nation have given too much, for nothing in return!
I was totally shocked to see on the news that Congress is ready and willing to pass a NEW TAX, NEW TAX, NEW TAX, on gasoline.
What the hell is going on?? They just went to work 2 days ago, Two fucking days ago, and already they have TURNED AGAINST US!!!! Will someone please Explain in a logical & senceable response to this question?
I have said so many times before that I am not into Personality Politics, and I really thought we were going to make some head way this time.
But two days, Just two days, and these ass holes are pulling this crap! I remember Joanie Earnst saying she would MAKE THEM SQUEEL in Washington. WTF is going on in this country?
I would honestly turn everything over to (and I really mean this) ISSIS if they knew how to pick their targets. But ISSIS picks innocent victims for their targets, when the real enemy is our politicians in the Lobbies, and the Halls of Washington.
I just don't think that Americans have the guts anymore to stand up for anything, and our Leaders Know It!
Come on people- Wake Up ! They jumped on gasoline before I could scrap up enough money from my pay check to fill my gas tank all the way up!!! Is this what our future really has in store for us? REALLY.
I was totally shocked to see on the news that Congress is ready and willing to pass a NEW TAX, NEW TAX, NEW TAX, on gasoline.
What the hell is going on?? They just went to work 2 days ago, Two fucking days ago, and already they have TURNED AGAINST US!!!! Will someone please Explain in a logical & senceable response to this question?
I have said so many times before that I am not into Personality Politics, and I really thought we were going to make some head way this time.
But two days, Just two days, and these ass holes are pulling this crap! I remember Joanie Earnst saying she would MAKE THEM SQUEEL in Washington. WTF is going on in this country?
I would honestly turn everything over to (and I really mean this) ISSIS if they knew how to pick their targets. But ISSIS picks innocent victims for their targets, when the real enemy is our politicians in the Lobbies, and the Halls of Washington.
I just don't think that Americans have the guts anymore to stand up for anything, and our Leaders Know It!
Come on people- Wake Up ! They jumped on gasoline before I could scrap up enough money from my pay check to fill my gas tank all the way up!!! Is this what our future really has in store for us? REALLY.
Jan 10, 2015 06:08:17 #
I want Donald Trump To Be our next President. That's right Donald Trump!
Someone tell me what is wrong with that!
Someone tell me what is wrong with that!
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