Posted on 08/27/2014 6:19:26 AM PDT by Kaslin
Harry Reid is in love with one of the easiest tax dodges out there. He’s been buying –-gasp!!—municipal bonds, which of course every investor knows denies federal income tax from being paid to the patriotic hardworking citizens of the United States via the U.S. Treasury on the income created from the interest rate carried on the debenture. I don’t know how long the government will put up with this loophole whereby the federal government allows some citizens, like Reid, to make really stupid investment choices in the name of tax-free investment, but I can say this: If you have reasonable facsimile of a sarcasm font, I’m in dire need.
Because of course there is nothing wrong per se with buying municipal bonds for the tax advantages even if it is a ridiculous choice as an “investment”.
I mean what’s the market for a 30-year municipal bond at 3 1/8%?
The market can ‘t be good, especially if interest rates rise. After you figure in inflation…yikes! That’s not investment, but rather the investment equivalent of that kid who lives in your basement with student loans and no job.
No wonder Reid loves it.
Let’s put it this way: If Reid was the guy who wrote up Obamacare, then there is no question why it sucks so badly. Like most Democrats he knows nothing about money. So he had to earn it the old fashioned way, through graft, unlike conservatives who do by hard work.
Which bring me to the meat of the story.
Burger King is moving to Canada, speaking of meat.
“Burger King is ruling a larger fast-food kingdom,” reports USAToday. “The new global company will be headquartered in Canada, but each brand will be managed independently, with Burger King retaining its U.S. offices in Miami, the two companies said in a joint statement.
I say good luck to the King of meat. Perhaps a country with a queen on its currency will be more friendly to the King than the U.S. has been.
It certainly will offer tax advantages, which of course is exactly what the move is all about. USAToday reports that the King save 46% on its tax bill with the move to the Great White North.
Does anyone else find the irony in that Burger King is fleeing to Canada-- a place to which American Tories fled because they supported the tax on tea in opposition to guys like Adams, Franklin and Washington—because it will save them from the onerous American tax system?
And no irony would be complete in Obama’s fantasy tax code without an Obama billionaire weighing in, wagging his patriarchal moneybags in a hypocritical fashion.
“Warren Buffett has been a vocal supporter of higher tax rates for the wealthy but when push comes to shove the Oracle is all about the bottom line,” writes Jeff Macke on Yahoo Finance. “As you know yesterday Burger King (BKW) shares soared when word leaked of a potential tax inversion - inspired bid for Canadian donut shop Tim Horton's (THI). Now it's being reported that the deal will be funded in part by Buffett's Berkshire Hathaway
Called “tax inversions” the newest trend has companies looking to move their headquarters overseas in an attempt to selfishly make more money for investors by fleeing high American corporate taxes, thus fulfilling the legal obligation management has to their shareholders. It’s more about the sickness of the American tax system, which can even compete with France. And that of course has liberals furious, calling companies who practice tax inversions unpatriotic and a lot of other hard names as well.
Liberal Democrats went so far at to call for a boycott of Burger King.
“Sen. Sherrod Brown (D., Ohio) was the first lawmaker to call for a boycott of Burger King Worldwide Inc.,” writes the Wall Street Journal, “telling customers to shop elsewhere given the company’s pursuit of an acquisition that could allow it to avoid or curtail U.S. taxes.”
So while companies continue to flee the United States over a broken tax code, Brown, Harry Reid and the rest of the Democrat Senate engage in the oldest tax dodge of desperate politicians.
Because dishonesty is the Democrats favorite tax dodge as well as their oldest.
I repeat: the rebate mechanism is not a show-stopper. Far less complex than procedures already in place for other federal payments, as noted.
You can’t have it both ways. Replacing the income tax with a VAT is a disaster waiting to happen. Replacing the income tax with an income tax is a zero sum game.
As to your other comments, you are conflating your general distrust with government (which I share) to the problems the income tax and the IRS create for American businesses and residents.
I am about replacing the income tax with the FAirTax and abolishing the IRS.
The other stuff comes after we get this done.
You just don’t understand VAT.
Read this: http://www.heritage.org/research/reports/2005/05/beware-the-value-added-tax and then let’s talk.
I lived with a VAT in Germany for a total of 7 years. I’m not saying I understand their system perfectly, but I do understand taxing a product at each level of transmission. In fact, we could file paperwork as Americans to receive something like 16% VAT taxes returned on items purchased on the local economy. When you went to the register, you didn’t have the sales tax ring up at 16%.
You did not have to pay the VAT because you were not a German citizen. German citizens pay both an income tax AND the VAT.
You really, really don’t want the German tax system in America!
“Income tax is imposed at progressive rates using complex tables. The lowest rate in 2014 is 14%. It goes up to 42% for income up to EUR 250’730.”
Source: http://www.capitaltaxconsulting.com/international-tax/germany/german-income-tax/
“German VAT is called Mehrwertsteuer (MwSt). It is also sometimes known as Umsatzsteuer (UST, or UmSt). The standard rate of German VAT is 19%, but a reduced rate of 7% may apply to some supplies.”
Source: http://www.brighton-accountants.com/blog/vat-uk-germany/
FairTax is imposed on ALL retail purchases of goods and services. There are no exemptions or exceptions; everyone pays (i.e., if a new item is purchased in the USA, the buyer, irespective of citizenship, will pay the FairTax), and at the same rate.
That is why we call it the FairTax.
Isn’t the current proposed tax rate for the fair tax about 20%?
FairTax legislation proposes a 23% rate.
HST, keep in mind that by removing the tax cost of government FRom goods and services, over time, the retail price of goods and services will decline by roughly 20%.
The after tax cost of new goods and services under the FairTax will be roughly the same as it is under the income tax. If your after-tax market basket of goods costs you $100.00 today, under the FairTax, that same market basket of goods will cost roughly $100.00, tax inclusive.
But, each consumer will have FReedom of choice in respect of how much tax they will pay, and when.
I don’t see what difference it makes if you get that 23% through 4 stages of production each time someone sells to someone else. JMHO.
There is no law that says you MUST have an income tax if you have a VAT. That is no more true than saying you MUST have an income tax if you also have a sales tax.
The income tax is what I want to get rid of. And property taxes. I hate those, too. Something should be taxed once, and then it should belong to you. Period.
You have not read the legislation, have you? Under the FairTax, business to business sales are not taxed! VAT taxes EVERY sales transaction! Can you imagine the paperwork nightmare?
The 23% FairTax is levied on NEW products ONLY at the point of the final retail sale.
EVERY country that has a VAT also has an income tax. It is the nature of ALL governments to tax and tax and tax and spend and spend and spend.
I agree with you re: property taxes. If I were king for a day, all we would have is a retail sales tax at the local, county, state and federal level AND NO OTHER TAXES!
But then, reason, logic and common sense are not virtues of government at ANY level.
And, it is for damn sure that no government at ANY level will promote policies designed to maximize citizen FReedom and minimize government!
If I hadn't read this before, I wouldn't know that the fair tax intends to tax only at the point of final retail sale.
That is what I'm suggesting be changed. Have it be taxed at ANY sale along the process of bringing it to the final customer.
It is very possible to have both a sales tax and an income tax. One of the problems with the fair tax is the willingness of so many to implement a national sales tax 'before' they eventually repeal the income tax. (A bit of a misdirection because the original constitution did allow for an income tax. It just had to be proportioned to the states on a per capita basis.)
Our conversation on this matter is over.
????
My point is that there is nothing to be gained by our continuing this conversation.
You are determined to keep advocating against the FairTax and for the VAT, and you have not done your homework.
You have not read the FairTax legislation.
Did you read Dr. Mitchell’s piece about the VAT I referenced?
Despite my best efforts, I have not been able to convince you of the errors in your thinking, and no longer wish to spend time “dialoging” with you.
It is that simple.
The Fair Tax is a sales tax only approach. No income tax. Only a sales tax.
A VAT is a sales tax.
So, I’m a supporter of the Fair Tax, a sales tax only approach. All I’m suggesting is the type of sales tax used be reviewed. There are advantages (and disadvantages) to a VAT sales tax instead of the end-point-of-sale sales tax.
That’s all I’ve said, and it’s never been against the Fair Tax.
IMHO, if you advocate for a VAT, you are opposed to the FairTax.
IMHO, there are NO advantages to a VAT.
Upthread, I asked you to read read Dr. Dan Mitchell’s paper entitled “Beware the Value Added Tax.” Obviously, you did not.
How can we have an intelligent two-way conversation about a subject you appear to be woefully ignorant about?
And then do not read a scholarly article which will provide you with expert information about the subject?
Go read the article, and then get back to me: http://www.heritage.org/research/reports/2005/05/beware-the-value-added-tax
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