Friday, May 24, 2013

The Corporate Tax Dodge

Steven Rattner's plea for fairness when dealing with the likes of Apple's profits means greater collection costs and therefore less benefit to society by imposing them. The purpose of taxes is to fund government operations that benefit society which gets none from bigger tax bureaucracies overseeing arcane transfer pricing schemes that get out gunned by the superior legal and tax counsel utilized by corporations with means and incentives to avoid them. Successful corporations eventually distribute profits either through dividends or stock repurchases, so let them play their games and tax wages,  dividends and capital gains at one low simple level.        

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