1) The sun will rise tomorrow
2) I will eventually die
3) Whenever the feds "simplify" the tax code, my business sky rockets.
President Barack Obama is putting former Federal Reserve Chairman Paul Volcker in charge of a tax- code review aimed at closing loopholes, streamlining the law and generating revenue, budget Director Peter Orszag said.
Volcker, 81, who heads the president’s Economic Recovery Advisory Board, is being asked to take a look at the laws in an effort to rebalance the tax system.
Orszag said the review, given a deadline of Dec. 4, is being ordered to make recommendations on steps to simplify the code, built over the last 96 years, in ways that would reduce tax evasion and what he called “corporate welfare.”
“There are hundreds of billions of dollars in uncollected taxes each year,” Orszag said in a conference call. The Volcker board “will be examining ways of being even more aggressive on reducing the tax gap.”
The tax gap is the difference between the amount of taxes owed by taxpayers and companies and the amount collected. Orszag cited academic studies suggesting that the difference is $300 billion or more. That is “ a lot of money,” he said, adding that the administration is going to be “as aggressive as possible” in reducing it.
Obama made a tax overhaul part of his platform during the presidential campaign. One goal is to close loopholes that he said reward companies that move jobs overseas.
First, this journalist is part of what is wrong with our democracy. There is nothing written in the tax code as a specific loophole to move jobs overseas.
I'll give you an example of how and why companies move jobs overseas.
Assume I own American company XYZ, incorporated. Now let's say I make widgets that I sell overseas from my plant in Detroit.
What does someone gain by moving they're business overseas.
1) Lower statutory wages
2) Lower required employment taxes
3) Lower regulatory BS
4) Lower corporate tax rates
Hence..... more money in my pocket.
Apparently, Team Obama suffers from the same dumb ass syndrome that has inflicted most of our democratic governors and mayors across the country.
You want to keep businesses from moving jobs overseas? Create a tax, labor and regulatory environment that makes it more attractive for businesses to stay in the US rather than seek refuge overseas.
Unfortunately, liberals have demagogued business owners and business in this country to the point that many are just saying "To hell with this, we'll go where we're wanted".
Maybe Volcker and Company can get this idiot to see the light.