Taxes

Reforming Tax Rates & Obama-Care Will Boost Domestic Investment

Published by Papa Giorgio

Via IBD Editorial, “American Companies Think The Unthinkable — Leaving The U.S.“

Taxes: Walgreen, America’s venerable drug-store chain, is thinking the unthinkable: relocating to Europe. Not because it sees growth and opportunity there, but because of onerous taxes here in the U.S. It’s an ominous trend.

The Financial Times of London calls it “one of the largest tax inversions ever.” That is, a company seeking to avoid punitive taxes in one market by moving to another.

No doubt the FT is right. And after its recent $16 billion takeover of Swiss-based Alliance Boots, it would be easy for Walgreen to remake itself as a Swiss company.

If it did, the Democratic Party’s liberals would no doubt call Walgreen unpatriotic for wanting to lessen its tax burden. In fact, they are responsible for an economic environment so hostile to capital and investment that companies now find it intolerable.

As we’ve noted, corporate tax rates in the U.S. are the highest among the developed nations. The average rate in America in 2013 was 39.13%; for all of the Organization for Economic Cooperation and Development nations, it stood at 28.2%.

In short, being headquartered here is a major competitive disadvantage for American firms.

According to an analysis by UBS, Walgreen’s U.S. tax rate is 37.5% — compared with Alliance Boots’ rate in Europe of about 20%. That’s a huge gap, worth billions of dollars a year.

But it’s even worse than that. A recent OECD study says the “integrated tax rate” — taxes on capital and income — for U.S. companies is a nightmarish 67.8% vs. 43.7% for the OECD….

[….]

A total of 547 companies — including Apple, GE, Microsoft and Pfizer — have dramatically expanded their so-called foreign indefinitely reinvested earnings overseas, which let them avoid the punishing rates here at home.

“The new numbers … certainly highlight what is one of the key challenges for tax reform,” said Wyden. No kidding.

Wyden and his fellow Democrats will try to raise taxes even higher or gut foreign tax exemptions. If so, it will backfire. Companies won’t invest here if government takes more of their money; they’ll just find new ways to put it out of reach.

And why shouldn’t they?

Not only are taxes too high, but also new laws such as Dodd-Frank and ObamaCare, a vast expansion of regulation, debt and the size of government, the federal takeover of entire industries, the bullying of Wall Street and demonization of CEOs, and forced CO2 cuts that will hammer manufacturers have made this the least pro-free market U.S. government in generations….

…read it all…

Pacific Legal Foundation and House Members Sue the Obama Administration

Published by Papa Giorgio

Remember I said this in July of 2012:

❖ Obama-Care will be overturned… no worries [Roberts Knows This!]:

a. The HHS mandate will be coming down the pipeline… it will be overturned on this basis (this may demand one more conservative judge);

b. The “Exchanges” between states being an impossibility both Constitutionally (the majority opinion eviscerated this concept), and Republican governors [like Jindal for instance] have said they will not implement them.

c. Since this is a direct tax, via the Court, this has another Constitutional ground to lose on or for Congress to overturn on. That is this:

Article 1, Section 3, Paragraph 3 of the Constitution [Apportionment of Representatives; Direct Taxes]: Representatives and direct taxes shall be apportioned among the several states which may be included within this union…

Article 1, Section 7 of the Constitution, Paragraph 1 [Bills of Revenue Originate in House]: All bills for raising revenue shall originate in the House of Representatives; but the Senate may propose or concur with amendments as on other Bills.

d. BECAUSE it is a tax, reconciliation can be used to repeal the law.

e. The Affordable Care Act made a one-word mistake in the 2800-page bill that [c]ould demolish the entire law.

Read more: https://religiopoliticaltalk.com/charles-lane-from-the-washington-post-says-justice-roberts-is-playing-chess-while-others-play-checkers/#ixzz2kXs6Q4cL

“We are grateful for this powerful support from Congressman Franks, a leading authority on the Constitution, and from many other key lawmakers,” said PLF Principal Attorney Paul J. Beard II. “This support from members of the House is especially significant because PLF’s lawsuit defends the constitutional authority of the lower chamber, the legislative body that is closest to the people. We argue that Obamacare was enacted in a way that deprived the House of its authority to ‘originate’ new taxation. By extension, taxpayers were deprived of a core constitutional protection against reckless and oppressive use of the federal taxing power.” (see more)

 Via Gateway Pundit:

In addition to Representative Franks, House members who have joined the brief as amici in support of PLF’s Obamacare challenge include: Michele Bachmann (MN); Joe Barton (TX); Kerry L. Bentivolio (MI); Marsha Blackburn (TN); Jim Bridenstine (OK); Mo Brooks (AL); K. Michael Conaway (TX); Steve Chabot (OH); Jeff Duncan (SC); John J. Duncan, Jr. (TN); John Fleming (LA); Bob Gibbs (OH); Louie Gohmert (TX); Andy Harris (MD); Tim Huelskamp (KS); Walter B. Jones, Jr. (NC); Steve King (IA); Doug Lamborn (CO); Doug LaMalfa (CA); Bob Latta (OH); Thomas Massie (KY); Mark Meadows (NC); Randy Neugebauer (TX); Steve Pearce (NM); Robert Pittenger (NC); Trey Radel (FL); David P. Roe (TN); Todd Rokita (IN); Matt Salmon (AZ); Mark Sanford (SC); David Schweikert (AZ); Marlin A. Stutzman (IN); Lee Terry (NE); Tim Walberg (MI); Randy K. Weber, Sr. (TX), Brad R. Wenstrup (OH); Lynn A. Westmoreland (GA); Rob Wittman (VA); and Ted S. Yoho (FL).

Seeking Low Taxes if Rich is Now a `Lifestyle Choice`

Published by Papa Giorgio

“I love this country but I’ve had enough” ~ actor Ray Winstone

Daily Mail on Richard Branson and Daily Mail on Ray Winstone

…Sir Richard Branson has had to defend his tax arrangements after a spotlight was cast on the billionaire’s decision to move to his luxury island in the Caribbean.

The entrepreneur, one of the most public advocates for British industry across the world, has not paid taxes on non-UK personal income since moving to Necker Island in 2007.
The founder of the Virgin empire has sold or transferred property he owned in the UK to his grown-up children, Sam and Holly.

A report in The Sunday Times highlighted the lack of British tax being paid by Sir Richard, who is frequently pictured with Union Jacks and has been reported to talk disparagingly of tax exiles.

Sir Richard said, in a blog post on Sunday, that he moved to the island seven years ago for lifestyle reasons….

Another article makes the point that “Critics of Sir Richard jumped on comments he made this year that Britain’s tax system was ‘reasonable’ compared with France’s. Responding to the actor Ray Winstone’s claim that he could see himself leaving Britain because the country was being ‘raped’ by high taxes…”

`Scrap Obamacare and Start Over` ~ Warren Buffett (2010)

Published by Papa Giorgio

Via Money Morning:

When asked, “Are you in favor of scrapping [Obamacare] and going back to start over?”, famed investor Warren Buffett said on CNBC March 1, 2010, “I would be — if I were President Obama.”

Buffett insisted that without changes to America’s health system average citizens will suffer.

“We have a health system that, in terms of costs, is really out of control,” he added. “And if you take this line and you project what has been happening into the future, we will get less and less competitive. So we need something else.”

Three debate-ridden years later, millions of Americans still agree.

But now Obamacare is only weeks away from kicking off.

The government program, slated to begin in earnest October 1 when the exchanges go live, is one of the most hated bills in history.

Ask millions of Americans what they think about the new law, and chances are they’re ready to pop a jugular.

Critics heavily oppose the mandate requiring them to purchase health insurance. They’re also furious at all the new taxes, fees, and higher premiums they’ll be stuck paying, thanks to Obamacare. 

Yet, while millions of Americans loathe every facet of The Affordable Care Act, as it’s officially titled, another group of Americans see it as a once-in-a lifetime opportunity to get rich: Investors.

According to most Wall Street experts, Obamacare will create unheard of fortunes for investors who tap into the right companies.

That’s because the U.S. will spend billions, even trillions of dollars implementing, regulating, and enforcing Obamacare.

Select companies and their investors are set to make a fortune in the next several months – and years – as the full Obamacare plan gets underway.

…read more…

This comes via Weekly Standard and it:

You know things are bad for President Obama when even Warren Buffett has soured on Obamacare and says that “we need something else.” Money Morning writes:

[….]

“Buffett insists that without changes to Obamacare average citizens will suffer.

“‘What we have now is untenable over time,’ said Buffett, an early supporter of President Obama. ‘That kind of a cost compared to the rest of the world is really like a tapeworm eating, you know, at our economic body.’

“Buffett does not believe that providing insurance for everyone is the first step to take in correcting our nation’s healthcare system.

“‘Attack the costs first, and then worry about expanding coverage,’ he said. ‘I would much rather see another plan that really attacks costs. And I think that’s what the American public wants to see. I mean, the American public is not behind this bill.'”

…read more…

 And in another story, “Obamacare Hurts Michigan Businesses,”

Kalamazoo-based, medical-products maker Stryker Corp. says Obamacare’s 2.3 percent medical device tax will cost the company $100 million this year, reducing its research and development budget by over 20 percent — meaning a loss of 1,000 workers. The Fortune 500 company is just one of many Michigan employers being negatively impacted, making the state a witness to the national economic harm that Obamacare has wrought, even before state health exchanges mandated under the health care law open Oct. 1.

[….]

Stryker is concerned with the “medical device excise tax and its negative impact on jobs and innovation,” says CEO Kevin Lobo. At his 10 Subway sandwich shops, Michigan businessman Ken Adams has switched to hiring part-time workers to avoid Obamacare’s expensive, employer health mandate. He added 25 part-time workers this summer while reducing other employees’ hours. “We won’t start hiring full-time people,” Adams told The Wall Street Journal, even with the delay of Obamacare’s employer mandate until 2015. Cities like Dearborn have alarmed unions by also planning reduced employee hours. Meanwhile, the General Accountability Office has warned of the “potential for implementation challenges going forward” for Obamacare exchanges. Translation: They won’t be ready come October.

No wonder some of the Obama administration’s biggest allies are rebelling.

Opt-Out

Tea Parties Not Only Target, Conservative Donors and Candidates

Published by Papa Giorgio

Via Libertarian Republican:

“Ms. O’Donnell, this is Dennis Martel, special agent with the U.S. Department of Treasury in Baltimore, Md. … We received information that your personal federal tax info may have been compromised and may have been misused by an individual,”

[….]

Additionally, from AllFiredUp radio, “Delaware officials admit tax snooping; won’t identify Christine O’Donnell as target”:

The director of Delaware’
s tax-collection office said Friday that his agency accessed the federal tax records in 2010 of an unnamed taxpayer, believed to be former GOP Senate candidate Christine O’Donnell. Patrick Carter, director of the state’s division of revenue, would not identify Ms. O’Donnell as the taxpayer but said he approved the inquiry “for routine purposes.” 

“A state Division of Revenue investigator accessed records on or after March 20, 2010 following information that came to the attention of the division,” Mr. Carter said in a statement. “The record access led the state revenue investigator to conclude there was no basis for further state investigation of a taxpayer and no action was taken by the state Division of Revenue against the taxpayer.”

Politiva blog writes:

Who knows what the damage was to Christine O’Donnell’s Senate campaign from leaked IRS information on her that was both false and misleading? One thing for sure is that it didn’t help her. As she says, for someone running on tax reform and fiscal responsibility to have the media talking about your tax problems both real and made up was devastating.

So, how then does Christine get her election back? Republicans should begin calls for Coons to resign his office. Again, he was County Executive for New Castle (Wilmington, Newark), the largest county in the State. Does anyone honestly believe he didn’t know what was going on down in Dover?

…read more…

Control
The bigger the government gets, the smaller the individual gets.

Electric and Hybrid Car Owners Taxed!

Published by Papa Giorgio

Via HotAir:

So, the government interferes in the market by incentivizing its citizens to buy hybrid and electric with big ol’ tax credits. It’ll be great for consumers and the environment, they say! You’ll save money and the air, it will be sweet with good intentions. But then people actually bought those electric and hybrid cars, car manufacturers responded to government mandates and consumer pushes for increased gas mileage, and the economy and gas prices dictated that a bunch of people start watching how much they drive. And, now you’ve got a revenue problem, what with far less money coming in the form of gas taxes.

What’s a state government to do? Well, certainly not remove its grimy hands from the mix for half a second to see what the natural state of the market might bring. Certainly not start making rational decisions about how to use this declining revenue as efficiently as possible. Certainly not stop raiding infrastructure funds for whatever they damn well please before coming to citizens for more taxes (Hi, Maryland Gov. Martin O’Malley). No, no, no, now they gotta tax those green cars that they got you to buy with those tax incentives in the first place! Sorry, suckahs! Shoulda known any deal with the devil was bound to burn up:

SAN FRANCISCO (Bloomberg) — Hybrid and electric cars are sparing the environment. Critics say they’re hurting the roads.

The popularity of these fuel-efficient vehicles is being blamed for a drop in gasoline taxes that pay for local highway and bridge maintenance, with three states enacting rules to make up the losses with added fees on the cars and at least five others weighing similar legislation.

“The intent is that people who use the roads pay for them,” said Arizona state Senator Steve Farley, a Democrat from Tucson who wrote a bill to tax electric cars. “Just because we have somebody who is getting out of doing it because they have an alternative form of fuel, that doesn’t mean they shouldn’t pay for the roads.”

[….]

In Washington state, electric-car owners this year began paying a $100 annual fee. Virginia in April approved a $64 annual fee on hybrid and electric cars.

In New Jersey, Senator Jim Whelan, a Democrat from Atlantic City, has proposed a $50 annual fee on electric and compressed natural-gas cars that would be deposited into a state fund for road and bridge maintenance…

…read more….

Taxpayers Shelled Out 11[+] Million Per `Permanent` Green Job Created

Published by Papa Giorgio

Via Gateway Pundit:

OilPrice.com reported:

A new report by the Institute for Energy Research (IER) has shown that despite strong support from the Obama administration, all funded by tax payers, the green energy sector has struggled to grow, and created very few jobs.

The report notes that since 2009 the Department of Energy has invested nearly $26 billion through the Section 1703 and 1705 loan programs, and in that time only 2,308 permanent green jobs have been generated, meaning that each new green sector job cost the taxpayers $11.25 million.

The IER stated in the report that “clearly, in terms of ‘bang for the buck,’ government programs that coddle renewable energy are losers. In terms of jobs, the losers are the American workers who would otherwise be gainfully employed but for the tremendous waste of taxpayer dollars on the administration’s obsession with green energy.”

80% of DOE dollars went to Obama backers. 19 of these green energy companies went bust.

Another green boondoggle, Vehicle Production Group, linked to an Obama donor, went bust this week.

From a year ago, this:

13 Obama Tax Hikes that Took Effect in 2013 (Flashback: `Your Taxes Will Not Go Up One Dime` ~ Obama)

Published by Papa Giorgio

1. Payroll tax: increase in the Social Security portion of the payroll tax from 4.2 percent to 6.2 percent for workers. This hits all Americans earning a paycheck—not just the “wealthy.” For example, The Wall Street Journal calculated that the “typical U.S. family earning $50,000 a year” will lose “an annual income boost of $1,000.”

2. Top marginal tax rate: increase from 35 percent to 39.6 percent for taxable incomes over $450,000 ($400,000 for single filers).

3. Phase out of personal exemptions for adjusted gross income (AGI) over $300,000 ($250,000 for single filers).

4. Phase down of itemized deductions for AGI over $300,000 ($250,000 for single filers).

5. Tax rates on investment: increase in the rate on dividends and capital gains from 15 percent to 20 percent for taxable incomes over $450,000 ($400,000 for single filers).

6. Death tax: increase in the rate (on estates larger than $5 million) from 35 percent to 40 percent.

7. Taxes on business investment: expiration of full expensing—the immediate deduction of capital purchases by businesses.

Obamacare tax increases that took effect:

8. Another investment tax increase: 3.8 percent surtax on investment income for taxpayers with taxable income exceeding $250,000 ($200,000 for singles).

9. Another payroll tax hike: 0.9 percent increase in the Hospital Insurance portion of the payroll tax for incomes over $250,000 ($200,000 for single filers).

10. Medical device tax: 2.3 percent excise tax paid by medical device manufacturers and importers on all their sales.

11. Reducing the income tax deduction for individuals’ medical expenses.

12. Elimination of the corporate income tax deduction for expenses related to theMedicare Part D subsidy.

13. Limitation of the corporate income tax deduction for compensation that health insurance companies pay to their executives.

(Heritage)