Why corporations move

We blogged about “inversions,” when a corporation moves its official headquarters to another country.  George Will offers an explanation from the corporation’s point of view, going on to criticize liberals for waxing indignant over the consequences of policies they themselves promoted. [Read more...]

Would you trade the income tax for a value added tax?

A former Treasury official in the George H. W.  Bush administration has put forward a new tax reform proposal.  It would eliminate the income tax for households that earn less than $100,000, cutting the rates for those above that threshold to 16% or 25.5%.  Instead, everyone would pay a Value Added Tax (basically a national sales tax) of 12.9%.  Charles Lane explains the proposal after the jump.

What would you think of this? [Read more...]

Corporations changing their citizenship

The corporate tax rate in the United States is 35%, the highest of all developed nations.  So more and more companies are practicing “inversion,” a transaction on paper that relocates their corporate home (while leaving most operations and employees where they are) to another country, such as Ireland, where the corporate rates are 12.5%.

Even President Obama wants to lower corporate rates–to 28%–and Republicans would like it much lower, but tax reform has been going nowhere, so lots of companies are making their move.  Do you blame them?  Are they un-patriotic or just doing what they have to do? [Read more...]

IRS may go after underwater homeowners

Homeowners who were underwater on their homes but who took advantage of mortgage relief programs face the prospect of the IRS calculating the amount by which a portion of their loan was forgiven as income. [Read more...]

IRS was going after the children to collect parents’ debts–but stopped!

A sentence was stuck into the Farm Bill removing the 10 year statute of limitations on debts owed to the United States government.  So now the IRS is withholding tax refunds from the children of deceased parents who owed Uncle Sam money.

UPDATE:  The IRS has announced that it is stopping the practice.

[Read more...]

Higher taxes if you had wealthy parents

Taxing the wealthy isn’t enough, some are saying.  Let’s tax people who had wealthy parents.  Since children of affluent parents have all kinds of advantages when it comes to educational accomplishments and social mobility, so, the reasoning goes, when they grow up, it’s only fair that they pay higher taxes.  [Read more...]


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