Tuesday, December 15, 2015

Hillary Clinton's Exit Tax

By Douglas V. Gibbs

"Leave the country, get taxed for it."  That's Hillary Clinton's strategy to stop American companies from seeking foreign shores.

The reason they are leaving is exactly because of that kind of mentality.  It's impossible to do business when you are taxed to the hilt.  Taxing them for leaving gives them all the more reason to get out of Dodge.

Patriotism is love of country, and nationalism is love of government.  Democrats are nationalists, but consider nationalism to be patriotic.  Therefore, they believe that paying taxes is patriotic.  Creating a more powerful central government is their primary desire, and to fuel a big government, the bureaucrats and politicians have to suck out of the public as many tax dollars as they can.  Then, when they have sucked their revenue sources dry, they have to figure out how to squeeze a few more dollars out of their victims.

This is why I often refer to these people as being "blood suckers."

The fact that they are a bunch of blankety-blank, dirty, rotten so and soes leads me to calling them cockroaches, too.

Clinton says she'll use the revenue from the exit tax to create manufacturing jobs in the U.S.  But, government can't create jobs.  They have to be created by the private sector.  And that will only happen if the United States becomes friendly towards business, which would include lowering corporate tax rates, and if they do that, businesses will stay and the exit tax would be an effort in futility.

Hillary is also following in Obama's footsteps with her campaign, calling for boosting infrastructure spending and creating other new governmental expenditures in research and clean energy (an industry that so far has a failing record).

While Clinton plans to go after corporations, her rhetoric is emerging as she is being investigated for being intricately woven into Wall Street.

Clinton’s personal and political fortunes are deeply intertwined with Wall Street, and Hillary and Bill Clinton make big money giving speeches to financial services, real estate and insurance companies.

While pledging to use government to stick it to the big bad corporations with heavy financial regulations, her allies in the corporate world will likely keep her pretty careful on how she treads (or at least that is the thinking of Bernie Sanders, her main competition for the Democratic Presidential Nomination).

When referring to companies escaping America's high corporate tax rates, she said, “They’re doing it to save money on taxes.  I want the Treasury Department to do everything it can to stop that kind of behavior and call it for what it is: gaming the tax system.”

How dare Americans seek to pay less taxes.

I wonder if we looked into Hillary's tax records, what we'd find?

If the tax system is unfair, and if companies can't make a profit in that kind of hostile environment, can you blame them for trying to escape?

Currently, U.S. companies may seek moving abroad by reincorporating.  This can be done by acquiring a foreign company and transferring more than 20 percent of their shares to foreign owners. While the Obama administration has been scrambling to try to raise that threshold to more than 50 percent, Clinton is suggesting raising the threshold AND demanding that any company that still attempts to move its headquarters overseas for tax reasons should be subject to the new exit tax.  The tax, according to Clinton, would levy taxes on foreign earnings at the time of the inversion deal. The way the laws are right now, the profits a U.S. company earns overseas are not taxed until they are brought back into the U.S., prompting many companies to hold cash and invest abroad.

Leftist Democrat Senators Dick Durbin of Illinois and Sherrod Brown of Ohio made a similar proposal last year, which would require companies seeking to reincorporate abroad to first settle their U.S. tax bill on cash stashed offshore.  It was not very popular, and never gained any traction.

Clinton’s rival in the 2016 race for the Presidency, Socialist Vermont Senator Bernie Sanders, introduced legislation last April that would continue to tax companies involved with inversion deals as American corporations as long as they remain U.S.-majority owned. The consequences to that one is simple to recognize.  Companies would then be forced to become foreign-majority owned - in other words, it would push those corporations escaping from the U.S. tax code further away, and make it less likely they will return.

Private industry will find a way to survive.  Corporate taxes are too high, and astronomical tax rates are the reason these business entities are leaving the United States.  Democrat big government politics are driving them out of the country, and now they think the way to keep corporations here is to punish them for trying to leave.

The solution is a no-brainer, but it doesn't support the socialist agenda of the Democrats, so common sense will never prevail.

-- Political Pistachio Conservative News and Commentary

Clinton offers new exit tax on US-foreign company mergers - Yahoo News

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