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a new president
"Those one piece black leather uniforms, whips and chains must be a little sweaty by now. "
I wanna pay higher taxes now lol
High Tax loons.
Rather than let the " hang em and flog em " high tax crazies have this debate all their own way, may I point out that if Governments didn't attempt to fleece workers and companies out of every penny they earn by levying punitive tax levels, there would be no demand for low tax havens.
And by the way, I believe that previous contributors are wrong to assume that whatever Barack Obama does will reduce the number of tax havens around the world. Tax levels, like any other commodity in a global market, will be a subject for competition between nations. With many countries now in dire economic straits, what better way to attract rapid inward investment than by offering tax rates which undercut the opposition ? This will create more tax havens, not less, and technoogy will open these markets to the average worker as well as the big players .
The days when Governments levied high tax knowing that there was nothing their own people could do but stump up or face jail are coming to an end. Governments' varied but mostly futile attempts to close down existing tax havens are simply an attempt to slow down the inevitable or an arrogant refusal to acknowledge change. But like all attempts to rig a market, they are, ultimately, bound to fail.
A better debate would be how we spend lower tax revenue more effectively. At the moment, it is mostly used by ruling political parties to shore up their own vested interests. ( just look a the current enormous, Labour-inspired job creation programme in every publically funded authority across the UK).
Right, I suppose I'd better make way for the high tax crazies to tell us all how naughty we've been and how they intend to punish us. ( Oh mercy !! ) . Those one piece black leather uniforms, whips and chains must be a little sweaty by now.
Best wishes,
Mike.
Socialist?
An American I spoke to recently said we Brits would do well to take on board that in many ways Obama is to the right of Margaret Thatcher. The suggestion that he might instigate anything approaching socialism is laughable.
He has a lot of expectations to live up to and in the current financial climate I doubt he will deliver even the modest reforms to health care and education which have been suggested. But as Richard says, a level playing field would be good.
Simon
Well said
Obama will be laden with the expectations of many, and will not fulfil them all. But he has persistently said he will tackle tax havens. His name is on the Stop Tax Haven Abuse Act. I have had the privilege of talking to some of those who helped draft that Act. It's not perfect. But I suspect that if we get John Kerry as Secretary of State then the willingness to tackle this issue will exist and that the right people will join the administration to deliver it.
But in response to the last commentator, what they will deliver will not be socialism. Far from it. What they will actually deliver is a level playing field market in which large companies and small companies, multinational companies and national companies, companies who wish to comply with the law and companies who have sought to evade the law, will compete with each other fairly and appropriately. the result will be that the efficient allocation of resources will take place without the artificial interference of tax havens to distort markets in favour of the already wealthy, large companies and those who are frankly willing to evade or abuse their obligations to society at large.
Creating fair market is not socialism. It is creating fair markets, and that is all. This is what I believe Obama wants to do.
The fact that more tax will be paid on the way is not the issue: there is no moral justification in defending those who break the law, and that without doubt has been the prime intention of tax haven administrations. There is no other reason for the secrecy that they have created.
Their tax rates are not a part of this debate. They can keep low taxes if they wish. the reality is they will not be able to afford to do so: it is only the secrecy that has made them attractive.
A Socialist State?
Subscribers will need to assess whether the fact that the USA is now a socialist state is a good thing, with all that change of direction means.