Ben Stein says that taxes has to be raised on the rich....

[Kasz216]

Mr Khan said:

Kasz216 said:

Mr Khan said:

What we need to do is disincentivize plunder. Impose penalties for companies that ship jobs overseas (by penalizing them salary/wages + benefits + 20% of every worker they outsource in that fiscal year, so that not only do they not save on outsourcing, they pay more than they would have otherwise), restrict commodities speculation, shut down the corporate income tax in lieu of a VAT (except for the Outsourcing penalty), and raise the penalties for off-shore tax evasion.

Congradulations.  You've just forced all companies to move overeseas... along with all the jobs.  SInce nobody is going to want a job that's both expensive and unflexable.

Even all the good jobs like software now go elsewhere.  Pretty much everything not expressily a service job for the country.

Now I know what your thinking... "Put huge excisie taxes on corporations who move!".

 

Now... the stockholders simply remove all funding from these companies, invest in similar comapanies overseas, likely caused by the same people who make deals overseas and subsidiaries.

Even in a best case legislation way I can't even conceive at the moment you pretty much gurantee no new companies open in the US ever again.

It's the epitome of well meaning legislation with huge negative unintended consequences.

The VAT as a replacement for corporate tax would be the better replacement, bringing in more revenue by catching all overseas companies that do business in America without imposing more of a burden on the ones that are here (maybe slightly more, as the VAT would be calculated to roughly bring in the same revenue as the current corporate rate, but without loopholes), and that excess revenue could work to help retraining programs for victims of outsourcing.

Oh a VAT would work fine.  Since it's basically saying "You will pay for the priveledge of using our consumer base no matter where you are."

The rest of it though... just are awful ideas that would boomerang so fast it'd make your head spin.

As I recall,  a democratic senator did the numbers once and said something like a 5% VAT corporate VAT could replace revenue, completely fund Obamacare or a better healthcare system and help pay down the debt.

It's crazy to have free trade, and then only charge those who create jobs in your country taxes.

 

Right now all the loopholes are a huge problem.  Which I imagine is why Mitt Romney says he wants to get rid of them anwyay.

Right now all the tax loopholes benefit a few companies, while tons more pay the uncompetitive 32% corporate tax rate or close too it.

New buisnesses that don't file as individuals pretty much have no choice.

It's another reason why new buisnesses get bought out instead of grow.