Political rhetoric in the United States, particularly on the right, has a strong tendency to focus on the incomparable economic freedom of Americans and American businesses. They portray the rest of the world as more socialistic and the American system as the closest thing to a free market economy operating in the world. Yet that is far from the truth. In fact, America is swiftly being supplanted as a preferred place of business by many other countries in the rich world.
Since the Internet itself has no one “location,” it would be difficult to create a simple set of tax rules for items bought and sold. Rather than make it complex and add to the mix of confusing tax policies that already dominate American life, we should continue to shop and sell unabridged from government interference.
It seems that when Chief Justice John Marshall was preparing the opinion for McCulloch v. Maryland he tapped into an eternal truth. “The power to tax is the power to destroy,” he wrote on behalf of a unanimous Supreme Court. Those words are no less true in 2014 than they were in 1819. Taxation appropriates money from one person or group of people in order to give it to others. There is no way to escape taxes. But there is a way to make taxes somewhat fairer. One way is to make taxes flatter and expand the tax base.
In a recent appearance before a congressional committee, EPA Administrator Gina McCarthy told them that the agency’s proposed sweeping carbon-regulation plan was “really an investment opportunity. This is not about pollution control.” If the plan isn’t about pollution, the primary reason for the EPA’s existence, why bother with yet more regulation of something that is not a pollutant—carbon dioxide—despite the Supreme Court’s idiotic decision that it is. Yes, even the Court gets things wrong.
America is supposed to be the land of the free, yet it is has one of the most vicious tax regimes in the rich world. Once blessed with comparatively low tax rates and levels of regulation, businesses and entrepreneurs flocked to the United States from the sclerotic systems of Europe (and elsewhere). Now American businesses are fleeing America’s shores and foreign-born entrepreneurs are less inclined to come at all.
The subject of tax inversion, in which American firms avail of lower tax rates in foreign countries by merging companies in those countries, has become very topical in the last couple weeks thanks to a decision by Abbvie, a drug company, to merger with Shire, an Ireland-based firm and move its headquarters overseas. One of at least 47 tax inversions in the last decade, the Abbvie-Shire deal is the largest such action yet, worth $54 billion. Perhaps unsurprisingly, President Obama and Democrats in Congress have become apoplectic with rage at the audacity of a business making a prudent decision to escape bloodsucking taxes.
Chicago faces a significant, and growing public pension problem. According to the Chicago Sun Times, Chicago’s four pension plans (including for teachers and public safety workers) face a combined debt[...]
This morning the House Judiciary Committee will undertake the markup of the Permanent Internet Tax Freedom Act. The Act would protect consumers from the increased costs in accessing and using the Internet by permanently extending the moratorium on Internet access taxes, and would prevent multiple and discriminatory taxation of Internet sales.
There’s an interesting phenomenon playing out in both New Jersey and Ohio: Two of the country’s most prominent conservative Republican governors have proposed new taxes of a sort that haven’t appealed even to traditionally liberal, tax-hungry state legislatures in states like Massachusetts and Washington.
It is often truly astonishing to me the harm done by the way the federal government was expanded well beyond its constitutional limits during the 1930’s New Deal era. One[...]
The benefits of government-funded university research are not shared widely enough in society, with universities retaining full ownership, for the most part, of their academic work. This means they get to profit from the government-funded research, and rarely have to share it with the taxpayers. By mandating that the research it spends so much taxpayer money on enter the public sphere, the government can more effectively spread the benefits of its own largesse and do its duty to all its citizens to provide them with the full benefit of what it produces with their tax money.
Legislators in Harrisburg are considering a proposal from state Sen. Daylin Leach, D-Wayne, that would make Pennsylvania the first state to impose a statewide tax on the use of plastic bags.