{"id":2745,"date":"2015-09-10T07:42:41","date_gmt":"2015-09-10T13:42:41","guid":{"rendered":"http:\/\/admin.patheos.com\/blogs\/janetheactuary\/?p=2745"},"modified":"2015-09-10T07:47:36","modified_gmt":"2015-09-10T13:47:36","slug":"what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues","status":"publish","type":"post","link":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html","title":{"rendered":"What about the corporate income tax? (and other Jane Tax Plan issues)"},"content":{"rendered":"\n<\/head>

Back in March, I proposed the Jane Tax Plan<\/a>: \u00a0a proposal which retains the basic concept of an income tax with marginal brackets, but with a lot of clean-up. \u00a0I linked to it the other day and got a link to it from instapundit.com<\/a>, which produced a lot of new feedback on my ideas.<\/p>\n

With respect to complaints that the rates are too high: \u00a0eh, maybe so; the idea is to outline a conceptual structure, with the rates and breakpoints adjusted to reflect existing or (someday. . .) reduced levels of spending.<\/p>\n

With respect to complaints that we should scrap the whole thing and adopt a VAT: \u00a0the reality is, an income tax is based on your ability to pay, and I believe that\u2019s the fairest thing going. \u00a0Even if you don\u2019t, let\u2019s work within the realm of the possible on this. \u00a0Yes, there are VATs in Europe and elsewhere, but that\u2019s on top of income tax \u2014 but, so far as I know, no one has replaced an income tax with a VAT. \u00a0And you don\u2019t want to introduce the idea of a bargain of adding a VAT in return for lowered tax rates, because you\u2019ll end up with high rates for both. \u00a0Besides, the VAT in Germany, for instance, is 19%<\/a>, but reduced to 7% for food, books, and other items, but they don\u2019t have a state sales tax, which is already 10% in the Chicago area.<\/p>\n

With respect to concerns that, if we inflation-index capital gains, the government will systematically understate inflation: \u00a0the government already has motivation to understate inflation \u2014 e.g., inflation adjustments on Social Security, for one. \u00a0But any government for which The Economist has to put an asterisk instead of an inflation measure, stating in a footnote that the official government inflation reporting is untrustworthy (Argentina, I\u2019m looking at you), is seriously troubled in the first place.<\/p>\n

With respect to the corporate income tax: \u00a0several of the comments complained that I hadn\u2019t addressed the corporate income tax. \u00a0Now, to a certain extent, I think that\u2019s\u00a0off-topic. \u00a0But it is something I had thought about, and concluded: \u00a0it\u2019s difficult.<\/p>\n

Here\u2019s my ideal: \u00a0corporate profits are not taxed, so long as they are reinvested in the business, in-country. \u00a0Tax would be applied on a 2-C rule: \u00a0when it leaves the company<\/strong> or the country<\/strong>.<\/p>\n

\u201cLeaves the company\u201d = income is taxed, as ordinary income, whenever it\u2019s paid out as wages, bonuses, dividends, or other ways in which income makes its way from the corporation to individual pockets. \u00a0Will marginal rates at the top levels have to be higher to compensate for lost revenue otherwise? \u00a0Maybe; I don\u2019t know.<\/p>\n

\u201cLeaves the country\u201d = income is taxed at a fixed rate, when a multinational headquartered elsewhere repatriates profits to its home country, or when a US company shifts money overseas, e.g., taking profits earned in the U.S. to build a new production facility or call center elsewhere.<\/p>\n

That\u2019s my concept. \u00a0The trouble is, it\u2019d be difficult to implement, especially the latter part, but, at the same time, the reason why I hadn\u2019t written about this previously is that I don\u2019t know much about how corporate taxation of multinationals works in the first place, so as to really be able to flesh out the \u201cleave the country\u201d piece. \u00a0Maybe instead of \u201cprofits\u201d we just tax money leaving the country by corporations, pure and simple, and figure, for companies simply selling products manufactured overseas, this replaces existing tariffs.<\/p>\n<\/body><\/html>\n","protected":false},"excerpt":{"rendered":"

Back in March, I proposed the Jane Tax Plan: \u00a0a proposal which retains the basic concept of an income tax with marginal brackets, but with a lot of clean-up. \u00a0I linked to it the other day and got a link to it from instapundit.com, which produced a lot of new feedback on my ideas. With […]<\/p>\n","protected":false},"author":2209,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-2745","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"yoast_head":"\nWhat about the corporate income tax? (and other Jane Tax Plan issues)<\/title>\n<meta name=\"description\" content=\"Back in March, I proposed the Jane Tax Plan: \u00a0a proposal which retains the basic concept of an income tax with marginal brackets, but with a lot of\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What about the corporate income tax? (and other Jane Tax Plan issues)\" \/>\n<meta property=\"og:description\" content=\"Back in March, I proposed the Jane Tax Plan: \u00a0a proposal which retains the basic concept of an income tax with marginal brackets, but with a lot of\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html\" \/>\n<meta property=\"og:site_name\" content=\"Jane the Actuary\" \/>\n<meta property=\"article:published_time\" content=\"2015-09-10T13:42:41+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2015-09-10T13:47:36+00:00\" \/>\n<meta name=\"author\" content=\"Jane the Actuary\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Jane the Actuary\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html\",\"url\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html\",\"name\":\"What about the corporate income tax? (and other Jane Tax Plan issues)\",\"isPartOf\":{\"@id\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#website\"},\"datePublished\":\"2015-09-10T13:42:41+00:00\",\"dateModified\":\"2015-09-10T13:47:36+00:00\",\"author\":{\"@id\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#\/schema\/person\/ed9b99e0bd58c5eeeebae6b82fa5a77a\"},\"description\":\"Back in March, I proposed the Jane Tax Plan: \u00a0a proposal which retains the basic concept of an income tax with marginal brackets, but with a lot of\",\"breadcrumb\":{\"@id\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"What about the corporate income tax? (and other Jane Tax Plan issues)\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#website\",\"url\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/\",\"name\":\"Jane the Actuary\",\"description\":\"\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/?s={search_term_string}\"},\"query-input\":\"required name=search_term_string\"}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#\/schema\/person\/ed9b99e0bd58c5eeeebae6b82fa5a77a\",\"name\":\"Jane the Actuary\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/8d6a493d380e87d49599d5487691c9fc?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/8d6a493d380e87d49599d5487691c9fc?s=96&d=mm&r=g\",\"caption\":\"Jane the Actuary\"},\"url\":\"https:\/\/www.patheos.com\/blogs\/janetheactuary\/author\/actuaryjane\"}]}<\/script>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"What about the corporate income tax? (and other Jane Tax Plan issues)","description":"Back in March, I proposed the Jane Tax Plan: \u00a0a proposal which retains the basic concept of an income tax with marginal brackets, but with a lot of","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html","og_locale":"en_US","og_type":"article","og_title":"What about the corporate income tax? (and other Jane Tax Plan issues)","og_description":"Back in March, I proposed the Jane Tax Plan: \u00a0a proposal which retains the basic concept of an income tax with marginal brackets, but with a lot of","og_url":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html","og_site_name":"Jane the Actuary","article_published_time":"2015-09-10T13:42:41+00:00","article_modified_time":"2015-09-10T13:47:36+00:00","author":"Jane the Actuary","twitter_card":"summary_large_image","twitter_misc":{"Written by":"Jane the Actuary","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html","url":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html","name":"What about the corporate income tax? (and other Jane Tax Plan issues)","isPartOf":{"@id":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#website"},"datePublished":"2015-09-10T13:42:41+00:00","dateModified":"2015-09-10T13:47:36+00:00","author":{"@id":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#\/schema\/person\/ed9b99e0bd58c5eeeebae6b82fa5a77a"},"description":"Back in March, I proposed the Jane Tax Plan: \u00a0a proposal which retains the basic concept of an income tax with marginal brackets, but with a lot of","breadcrumb":{"@id":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/2015\/09\/what-about-the-corporate-income-tax-and-other-jane-tax-plan-issues.html#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.patheos.com\/blogs\/janetheactuary"},{"@type":"ListItem","position":2,"name":"What about the corporate income tax? (and other Jane Tax Plan issues)"}]},{"@type":"WebSite","@id":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#website","url":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/","name":"Jane the Actuary","description":"","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/?s={search_term_string}"},"query-input":"required name=search_term_string"}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#\/schema\/person\/ed9b99e0bd58c5eeeebae6b82fa5a77a","name":"Jane the Actuary","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/8d6a493d380e87d49599d5487691c9fc?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8d6a493d380e87d49599d5487691c9fc?s=96&d=mm&r=g","caption":"Jane the Actuary"},"url":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/author\/actuaryjane"}]}},"_links":{"self":[{"href":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/wp-json\/wp\/v2\/posts\/2745","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/wp-json\/wp\/v2\/users\/2209"}],"replies":[{"embeddable":true,"href":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/wp-json\/wp\/v2\/comments?post=2745"}],"version-history":[{"count":0,"href":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/wp-json\/wp\/v2\/posts\/2745\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/wp-json\/wp\/v2\/media?parent=2745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/wp-json\/wp\/v2\/categories?post=2745"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.patheos.com\/blogs\/janetheactuary\/wp-json\/wp\/v2\/tags?post=2745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}