This is the second in a series of posts relating to how the liberal press has misled many conservatives into supporting liberal positions on certain economic issues rather than upholding the conservative point of view.
Misconception: Tax havens are bad.
The term "tax haven" is a political term coined by liberals to disparage individual freedom and free trade. The liberal's goal in demonizing so called tax havens is to extract more tax revenue enabling the further expansion of big government.
Tax havens are nothing more than sovereign nations with low tax rates (Switzerland for example). Low tax rates are a good thing and they are beneficial to U.S. citizens. Low tax nations pose competition to high tax nations (such as the U.S. which, some may be surprised to hear, has the highest corporate tax rate among developed nations). This competition puts pressure on high tax nations to lower their taxes in order to compete for business capital.
The basic conservative concepts these: Competition is a good thing and taxes are a bad thing. Competition among nations relating to tax havens put pressure on the U.S. government to lower corporate and other business taxes which are bad for the economy and which facilitate the expansion of big government.
And finally, any attempt by governments to regulate or block the movement of funds to tax havens is an attack on personal freedom and free trade.
Have a nice day.
DWD
excellent blog on taxes....a good example of the US government trying to extract taxes from multi-national US companies is to tax profits from off-shore operations if they bring the profits back to US soil.....as a result US multi-national corporations are sitting on billions of dollars off-shore
ReplyDeleteWhen considering competition and free trade, specific circumstances may or may not benefit a given business or individual, however, on balance, free markets ultimately create the greatest overall benefit--and not incidentally, they promote personal freedom.
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