The Huge News You Missed from the G8 Summit
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  • Corlyss

    12 years ago, the US had the lowest corporate and personal income taxes in the OECD. The rest were beating up on the Caymans and the US to “harmonize” their tax systems with the high taxers so capital wouldn’t nestle so comfortably in so-called tax havens. Now, the US has the highest corporate taxes in the organization and we’re the one’s chasing moles to squeeze more money out of the productive. Sad.

    • bpuharic

      A convenient fiction to bring out the violins for the poor, suffering corporations. THey’ve riddled our tax code like Swiss cheese and the EFFECTIVE corporate tax is a standard deviation below the OECD average

  • Ick. We should go to a simple domestic consumption tax and not bother with this game.

  • lukelea

    In the literature of economics a graduated expenditure tax (GET) is widely acknowledged to be the fairest and most efficienct way to raise large amounts of revenue, when measured in terms of the effect of the general welfare of the society as a whole. Unfortunately implementation was impossible before the advent of computers and the world wide web. That’s because a GET requires that every bank and borkerage account in the world be registered to its owners the way IRA accounts are registered today. In fact a GET tax works much like the IRA system except there are no limits on annual contributions and no penalties for early withdrawals. It’s like an income tax except that income not spent but saved is taxed only in the year it is spent.

    There are no national solutions to the problems of taxation, falling wages, and the redistribution of income from labor to capital in the new global economy. All the developed economies face essentially the same set of problems. They have a common interest in ending secret bank accounts, overseas tax havens, and shell corporations. If they worked together they could all implement GET’s, do away with the income and sales tax, capital gains taxes, even the so-called death tax. Treat all income the same. Tax only what is consumed, not what is produced. Penalize people for what they take out of the pot, not what they put in.

    GET for GATT is one way to put it.

  • ljgude

    Well, as long as the rich can hire accountants and lawyers smarter than the government’s things ain’t gonna change. I think reform on the scale proposed by lukelea below is the kind of comprehensive reform needed to

    • bpuharic

      Who needs to buy accountants when, in the US, the rich can buy elections?

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