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highwaystar101 on 13 October 2009
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Kasz216 said:
highwaystar101 said:
Kasz216 said:

Yeah, the real problem is Califronia's tax rates being too high, buisnesses and people are fleeing California left and right.

It creates a vicious circle.  They want more social support for the poor, so they raise taxes on the rich and buisnesses.  The Rich and buisnesses leave so they end up with less tax revenue and more people in need... so they raise things more... so more people leave.

Up until they are where they are now, where they are trying to cut stuff... except they're cutting pretty much everything BUT the things they should cut.

A lower corporation tax is needed in the US (and for the UK imo) it seems like the logical way to reduce industrial outsourcing because at the moment the tax rate is regressive.

I kinda like a new tax suggestion i've seen.

Completly change how industry taxing works.

Instead of being taxed for being in a state or country.  You are taxed by how much buisness you do IN that state or country.  Outsourcing no longer saves a company.  Plus companies are given huge incentives to work in your state... since they basically have no effective tax in the traditional sense.

If they are export only.  They don't pay any taxes in your state yet you get their economic growth of your area... and import only people pay you.

Sure you don't collect taxes fromt he export only people... but they're still bringing jobs and economic growth to your country AND their workers are getting paid... which you can collect tax revenues from.

That sounds good in theory, but I bet a lot of countries that currently have the upper hand wouldn't go for it. Mind you, it would save a lot of problems for us as you said.