You’re a United States senator from a state struggling to compete in the world economy. Your daughter runs a giant drug company with roots in your state, and the firm makes a fortune from taxpayers via Medicare and Medicaid. Everything’s cozy and connected and perfectly Washington—until your daughter renounces the firm’s U.S. citizenship to reduce its U.S. taxes. What do you do?

If you’re Joe Manchin, you duck a reporter’s telephone call for six days, then emerge for an interview in which you vow to make your daughter’s actions, from this day forward, illegal.

Sort of.

When progressives rant about tax the wealthy, they are talking about high paid individuals who are often the most productive rather than their old money friends.

All they have to do to protect their worldwide income from double (and high) taxation in the US is to file some paperwork. It might even be criminal NOT to.

In other words: whenever the government takes less of your money than Obama wants, that’s a “handout.”

But when masses of illegal aliens invade the country and immediately start getting free medical care, food, housing, education, etc., that’s not a “handout from American taxpayers.” No, that’s a “human right.” Obama luuuvs people who want to be Americans just to get those handouts a.k.a. rights.

The government, of course, always spends our money wisely. Spending it on high salaries and benefits for government employees is especially wise.

Other countries only tax corporations on the profits made inside that country. Profits from other countries are not taxed. Thus, if a German corporation sales products in Ireland, it will Irish tax on the profits made in Ireland. Germany will not tax those profits.

US corporations are taxed on their world-wide income. If a US corporation does business in Ireland, it will pay Irish tax on those profits. Then, when it brings those profits back to the US, it also pays US tax (with a credit given for the Irish taxes paid). Since the US has the highest corporate tax in the world, this means that US corporations take the US tax rates with it, anywhere in the world it does business. Since business is increasingly global, this means US corporations are at a competitive disadvantage with all non-US corporations.

The problem isn’t inversions. The problem is that the US corporate tax system is so bad, and does not conform to the rest of the world.

We’re continually filling a bucket that has a hole in its bottom.

that looks like it’s in the apocalyptic Dark Ages with high crime… and massive murders.

https://www.youtube.com/watch?v=PJSb9MSwA_E

NO corporate tax is the right answer.

And NO tax on “income”, which is one of the most bastardized terms in history.

Plus, if you want to make U.S. firms more competitive, you lower their tax burden, which they ALLLLLLL simply have to figure into their cost structure for the goods and services you and I and everyone across the world buy.