American companies that reincorporate abroad are not doing so to avoid paying taxes on U.S. earnings, despite the often misleading impressions left by the rantings of Senators Carl Levin, Dick Durbin, Elizabeth Warren, and others to the contrary. They are doing it to avoid paying U.S. taxes on earnings in other countries.
Gov. Pat Quinn’s “millionaire tax” question, the most recent nonbinding vote added to the bloated November ballot, is not only a misguided effort to draw his base to the polls with blatant class warfare but incredibly poor public policy. Like all “soak the rich” tax schemes, the imposition of increased taxes on high-income earners will discourage new capital and entrepreneurs from entering the state.
Tuesday is April 15 – Tax Day. The official day that represents governments’ year-round, omni-directional shearing of We the People. Looking to get filing help from our federal fleecers is at best a crapshoot.