Visitors Now:
Total Visits:
Total Stories:
Profile image
By Freedom Bunker
Contributor profile | More stories
Story Views

Now:
Last Hour:
Last 24 Hours:
Total:

Hillary Clinton’s Exit Tax

Thursday, September 22, 2016 14:26
% of readers think this story is Fact. Add your two cents.

(Before It's News)

55627485_MLIn the Cold War era, Eastern bloc countries prevented their citizens from leaving. The Berlin Wall was the most iconic symbol of the Eastern bloc’s no exit policy. Hillary Clinton’s proposed exit tax “on the untaxed overseas earnings of multinational companies that leave the U.S.” falls short of being a Berlin Wall for U.S. corporations only because it is not as extreme. Its philosophical foundation is the same: prevent those who want to leave the country for better conditions elsewhere from doing so.

Clinton’s economic plan goes further than that. Some U.S. corporations have merged with overseas corporations and moved their headquarters overseas to avoid higher U.S. tax rates, a move known as corporate inversion. Clinton’s website says, “Clinton will prevent inversions and related transactions driven by tax planning to lower corporate tax bills.” She adds that she will “Entirely block inversions that are likely to be the most abusive through a 50% merger threshold.” That’s sounding more like a Berlin Wall.

The United States has always allowed its citizens to leave if they choose to live elsewhere, and has remained desirable enough that more people want to move in than move out. For corporations, that’s not so much the case.

Rather than follow a Berlin Wall policy of trying to prevent corporations that would rather locate elsewhere from leaving, we should be designing policies that make the U.S. a desirable location for corporations. Design policies that make foreign corporations want to locate here rather than retaining policies that make U.S. corporations want to locate elsewhere.

The policies that make some corporations want to leave also place burdens on those corporations that stay. Those policies slow economic growth and produce a lower standard of living for everyone. It is troubling that Clinton thinks we need a Berlin Wall-style policy to keep corporations from leaving, rather than thinking about how to make the U.S. more attractive for corporations, so they want to stay.

Report abuse

Comments

Your Comments
Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

Top Stories
Recent Stories

Register

Newsletter

Email this story
Email this story

If you really want to ban this commenter, please write down the reason:

If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.