DISCLAIMER: I do not attempt to be polite or partisan in my articles, merely truthful. If you are a partisan and believe that the letter after the name of a politician is more important then their policies, I suggest that you stop reading and leave this site immediately--there is nothing here for you.

Modern American politics are corrupt, hyper-partisan, and gridlocked, yet the mainstream media has failed to cover this as anything but politics as usual. This blog allows me to post my views, analysis and criticisms which are too confrontational for posting in mainstream outlets.

I am your host, Josh Sager--a progressive activist, political writer and occupier--and I welcome you to SarcasticLiberal.blogspot.com

Friday, April 13, 2012

Tax Sheltering Info-graphic

The following info-graphic, which was sent to me by one of my readers, is a very good analysis over the use of tax shelters to reduce the tax burden on the wealthy - Many thank yous to Sarah, who took the time to send me this graphic.

In addition to the information contained in this graphic, there are several important things to be added to the discussion over tax-sheltering:

  1. Whenever you hear the term "tax holiday", the speaker is proposing legalized tax evasion. A tax holiday, is when the government allows companies that offshore profits in the below mentioned tax havens to return the money to the USA, free of taxes. This practice sets up a powerful incentive for bad behavior by the wealthy, and allows for these tax evaders to remove all down-side to their actions.
  2. We can easily fix this problem by taxing corporate profits at the time that they are made, rather than when they are returned to the USA.
  3. As corporations are reducing their tax burden using these tax havens, one of two things happens (sometimes both): Option #1 is an increase on taxes for the middle class and poor (the slack needs to be taken up by somebody, and it likely won't be the groups with lobbyists). Option #2 is a decrease in services to the poor and middle class (Ex. proposed cuts to entitlements).
  4. Whenever you hear that "the USA has the highest tax rates, thus we must reduce taxes to become competitive", this is BS, as many of our corporations are already paying nothing (yet taking a great deal).

tax infographic
Source: http://coupons.org

No comments:

Post a Comment