rocket finance

The United States should become a tax haven

From Wikipedia, a tax haven is a place (usually a country) where certain taxes are levied at a low rate or not at all. It is commonly stated that our government has a difficult time exactly defining a tax haven, but usually tax havens have some or all of the following:

• no or nominal taxes;
• lack of effective exchange of tax information with foreign tax authorities
• lack of transparency in the operation of legislative, legal or administrative provisions
• no requirement for a substantive local presence;
• self-promotion as an offshore financial center

Liberals believe that your income belongs to the government first and then you can have a little . . . if you are good. That is why the Obama administration is now setting its sites on companies who shield income from the IRS by claiming it in other countries. Our government thinks it can collect an additional $200 billion in tax revenue by stricter enforcement of existing tax code and by going after companies who use tax havens.

But I have a better idea.

Why not just make the United States of America into a country where businesses want to come? Why not use our tax code to encourage corporations from other countries to relocate here in the USA in order to take advantage of our lenient tax code? Instead of bending over backwards to funnel money to Switzerland or through the Cayman Islands, companies could do business here in the United States and pay taxes like normal. Mr. Obama would not have to hire 800 more IRS agents and fewer citizens would be forced to collect unemployment benefits.

Just think of all the jobs and new tax payers such a plan would create! More businesses, more jobs, more employment . . . what is the down side?

Maybe President Obama has already thought of this – lately the best way to shelter income from the IRS is to become a member of his administrative cabinet.

Photo by: nattu