Growing opposition to Obama’s Tax Haven clampdown

Opposition to President Obama's plans to close the fiscal loophole of Tax Haven's is under increasing pressure from business, lobbyists, and the media. You can be sure many Senators and Congressmen, worried about their campaign contributions in the run up to 2010, will be conveying this sense of alarm to the President. Bloomberg ran with a story this morning, quoting some very influential Democrats including Senate Finance Committee Chairman Max Baucus, Representative Joseph Crowley, a Democrat on the tax-writing House Ways and Means Committee, and Senator Barbara Boxer. This latest attack follows a lot of negative, primarily republican generated, commentary since last Monday, including the expected outrage from the Republican caucus and their media friends (particularly Fox). One of the most telling, however, was a seemingly innocent comment from CNBC's Erin Burnett, during an interview on Morning Joe last week. She basically said that 'avoiding taxes' is a perfectly acceptable and legal practice and is basically the fault of our 35% corporate tax rate. To Ms Burnett, and all of the other people who think that tax avoidance is perfectly acceptable, I'll share another quote that I discovered while following this story - posted on a discussion thread

"My Lords, of recent years much ingenuity has been expended in certain quarters in attempting to devise methods of disposition of income by which those who were prepared to adopt them might enjoy the benefits of residence within this country while receiving the equivalent of such income without sharing in the appropriate burden of British taxation. Judicial dicta may be cited which may point out that, however elaborate and artificial such methods may be, those who adopt them are "entitled" to do so. There is, of course, no doubt they are within their legal rights, but that is no reason why their effort, or those of the professional gentlemen who assist them in the matter, should be regarded as a commendable exercise of ingenuity or as a discharge of the duties of good citizenship."

Lord Simon, L.C., Latilla v Inland Revenue Commissioners (1943)
Video and more details after the fold

Continue ReadingGrowing opposition to Obama’s Tax Haven clampdown

Taxation is not stealing

It's amazing to me that we need to spend so much of our time dealing with arguments that have no factual or rational basis. These distractions lessen the time available for developing any positive agenda (trying to reduce human suffering, preserve the planet, systematically explore nature, including human animals). At Daylight Atheism, Ebonmuse spend some time attacking an idea commonly expressed at the FOX sponsored teabagger parties: that taxation is essentially the government stealing your money. As usual, Ebonmuse clearly sets out the argument, then demolishes it. Here's an excerpt, but I highly recommend visiting his site and reading the whole thing:

Libertarians say that taxation is like theft because it takes property from the unwilling. What they ignore, time and time again, is the crucial role of democratic consent. Taxes are not arbitrary impositions decreed by a faceless government. Rather, taxes are the dues we pay in exchange for membership in a society and access to all the services it offers.

The situation can be compared to a private club that charges a membership fee in exchange for providing benefits and amenities to its members. Obviously, the club is within its rights to charge whatever price it believes fair in exchange for this. If you believe the price is too high, you're free to renounce your membership and leave the club. What you're not free to do is to refuse to pay, but demand that you still be allowed to sit in the club and use its facilities.

Continue ReadingTaxation is not stealing