Tuesday, July 26, 2011

Taibbi Comes Out Against a Tax Holiday

A proposal to reduce taxes on multinational corporations who bring their money back into the country from offshore is being promoted in the House of Representatives.

Matt  Taibbi seems to think this is the worst idea since the American Revolution: 
The madness that is the proposed tax repatriation holiday is continuing and gathering steam...One thing that people must understand about this tax repatriation business is that it’s a wholly bipartisan affair. It’s not solely the work of evil Republicans. This is a scheme that requires heavies in both parties to help ram the knotty, hard-to-sell legislation through.

Of course, revulsion at a tax break is nothing new, as Murray Rothbard pointed out:
Many writers denounce tax exemptions and levy their fire at the tax-exempt, particularly those instrumental in obtaining the exemptions for themselves....If a tax is in fact unjust, and some are exempt from it, the hue and cry should not be to extend the tax to everyone, but on the contrary to extend the exemption to everyone.
Taibbi is decades late on his outrage and as always is on the interventionist side of the debate. Will someone please hand the man a Mao Suit.

3 comments:

  1. The great Rothbard had an answer for everything.

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  2. Cutting corporate taxes to one flat low rate is the sure way to

    1. Stop the outflow of capital to tax havens
    2. Stop the undermining of third world economies
    3. Stop the intrusion of the DOJ into banking privacy, since they wouldn't any longer be able to use tax evasion as an excuse to violate it.
    This would rollback the police state
    4. Force a fleet of lawyers to get value adding jobs
    5. Bring jobs back to the US
    6. Make US manufacturing eompetitive
    7. Decrease the amount of enforcement needed 8. Reduce government bureaucracy
    8. Increase economic productivity
    9. Free up the court system from endless tax disputes
    10. Give smaller businesses a chance to compete fairly, since they no longer suffer from the disadvantages resulting from fewer expensive lawyers
    11. Increase competition and undermine monopolies...
    12. Reduce corporate espionage and bribery in foreign countries
    13. Leading to fewer international entanglements and misuse of the government and military for corporate ends which would
    14. Usher in prosperity and market growth in other coutnries, leading to
    15. Stronger markets for our products and thus
    16. Increased trade in the US
    17. Which means trade surpluses and greater wealth
    18. Allowing us to paying off more of our debts
    19. Leading to a stronger dollar
    20. And greater purchasing power for the American citizen

    So naturally the dimwit media would be against it...

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  3. Like so many lefties he only cares about the potential for the state to get more of other peoples money to support the state and all its welfare and warfare schemes, that he ignores the reality that his position benefits the other nations of the world by preventing capital outflows to the US. He also ignores that there is no reasonable way the US can ever find a way to tax this money at the source. Anything they would do, would send jobs and corps overseas. Other countries, far more Marxist influenced then ours, realized this a long time ago and opted for the intelligent solution. Why are our Marxist so dumb?

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