Skip to main content

View Diary: Gang of Six cuts Social Security, cuts corporate tax rates, eliminates CLASS Act (163 comments)

Comment Preferences

  •  The don't pay the taxes anyway (9+ / 0-)

    GE actually got money from the government rather than paying any taxes.

    The loopholes are so big, very few corps pay at anywhere near the rate.

    Most Europeans have a VAT (value added tax).  It's almost impossible to avoid.  We should be taxing consumption, not production, with a credit for low income.

    It's the assurance of punishment that deters crime, not the severity.  The same holds true for taxes.

    •  And with a VAT "we" just pay more (2+ / 0-)

      VAT ... useful as it is in much of the European Union, Great Britain and Israel ... is still an ENORMOUSLY REGRESSIVE tax.

      Simply, and right on the surface however much the Uberwealthy spend on luxuries, it is much lower percentage of income (or of wealth) than what the less-wealthy spend on necessities.  

      So, assuming Bill Gates IS taxed on the millions he spends on a  Gutenberg Bible or Old Master painting he's only being taxed on a modest portion of what he has.

      But the poor bastard driving a cab or hanging wallpaper for $50k or so a year, and who spends most of it buying basic necessities  and a few creature comforts for his family -- he winds up being taxed on most everything he earns.

      No question that governments can raise large sums with VAT, and no question it "nudges" high-earners to put their money into hedge funds and stock portfolios  rather than buying more Picasso paintings ...

      But maybe it would be a better idea to look at how Sharia Law imposes taxation:

      Agricultural profits are taxed at 2% if the crops are irrigated by canals, aqueducts or such... but at 4% if the water falls directly from Heaven --  rewarding  landowners who improve their acreage.

      But it is in Trade, Commerce and Banking that Sharia Taxation shows simple brilliance:   Wealth in circulation is not taxed ... but accumulated wealth is taxed at 2% annually.

      A moment's reflection shows that hoarding wealth is a really bad under this system, since the tax is applied to the remaining balance every year ... performing  in 25 years what the British 50% inheritance tax accomplishes in 40 or 50 years -- breaking up inherited fortunes and the political influence that they buy.

      It also encourages Britons to pass their wealth to their heirs while the heirs are still young and energetic enough to do something useful with it.

       Now, whether art treasures and  non agricultural real estate  are considered "wealth" for the purpose of taxation has varied from time to time and place to place -- the determination being made partially by religious interpretation and partially by political process.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site