Tag Archives | Tax

Real World Contradicts Right-Wing Tax Theories

“California raised taxes, Kansas cut them. California did better,” writes David Cay Johnston at  Al Jazeera America:

Ever since economist Arthur Laffer drew his eponymous curve on a napkin for two officials in President Richard Nixon’s administration four decades ago, we have been told that cutting tax rates spurs jobs and higher pay, while hiking taxes does the opposite.

Now, thanks to recent tax cuts in Kansas and tax hikes in California, we have real-world tests of this idea. So far the results do not support Laffer’s insistence that lower tax rates always result in more, better-paying jobs. In fact, Kansas’ tax cuts produced much slower job and wage growth than in California.The empirical evidence that the Laffer Curve is not what its promoter insists joins other real-world experience undermining the widely held belief that minimum wage increases reduce employment and income.

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“Laffer-Curve” by Vectorisation by Vanessaezekowitz (CC)

The Laffer Curve refers to a theory of marginal effects of tax rates on tax revenues, which goes back hundreds of years, at least to a 15th Century Muslim scholar named Ibn Khaldun.

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Hungary internet tax cancelled after mass protests

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Prime Minister Viktor Orban © European People’s Party (CC by 2.0)

via BBC:

Hungary has decided to shelve a proposed tax on internet data traffic after mass protests against the plan.

“This tax in its current form cannot be introduced,” Prime Minister Viktor Orban said on Friday.

Large-scale protests began on Sunday, when demonstrators hurled old computer parts at the headquarters of Mr Orban’s ruling Fidesz party.

The draft law – condemned by the EU – would levy a fee on each gigabyte of internet data transferred.

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Republican Declares Obamneycare Tanning Bed Tax Racist Against Whites

_011Clare Kim writes at MSNBC:

Freshman Congressman Ted Yoho believes the tanning tax in the Affordable Care Act is “racist,” according to comments at a town hall meeting Saturday in Gainesville, FL. The Republican congressman recounted a conversation he had with House Speaker John Boehner about how the 10% tax for tanning beds discriminates against people on the basis of “the color of [their] skin.”

“I had a little fun with Boehner and told him about the sun tanning tax,” he told his constituents. He goes, ‘I didn’t know it was in there,’ and I said, ‘Yes, it’s a ten percent tax.’ He goes, ‘Well, that’s not that big of a deal.’ I said, ‘It’s a racist tax.’ He goes, ‘You know what? It is.’”

Rep. Yoho explained the premise of the health care law’s “racist tax.”

“I had an Indian doctor in our office the other day, very dark skin, with two non-dark skin people, and I asked this to him, I said, ‘Have you ever been to a tanning booth?’ and he goes, ‘No, no need.’ So therefore it’s a racist tax and I thought I might need to get to a sun tanning booth so I can come out and say I’ve been disenfranchised because I got taxed because of the color of my skin.”

“As crazy as that sounds, that’s what the left does, right?

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How Multinational Companies Benefit From Offshore Tax Havens

LOGOs

NPR‘s daily show, Fresh Air,  Jesse Drucker from Bloomber News engaged in an interesting discussion yesterday about the multinational companies that save billions in taxes by using other countries with lower corporate income tax. What does this mean for the country’s economy, both that of the US and the offshore tax havens? From WHYY on NPR:

The top corporate income tax level in the United States is 35 percent. In the United Kingdom, it’s 28 percent. But in Ireland, it’s only 12.5 percent, and in Bermuda there’s no corporate income tax at all. That means multinational companies that shift their earnings through Ireland or Bermuda can save billions of dollars in taxes each year.

On today’s Fresh Air, Bloomberg News reporter Jesse Drucker, who has written extensively about corporate tax-dodging, explains how companies like Google, Pfizer, Lilly, Oracle, Facebook and Microsoft have managed to reduce their tax rates by hundreds of millions — and in some cases, billions — of dollars by taking advantage of offshore tax havens.

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Should Republicans Consider Hedging Their Bets On Paul ‘Speedy’ Ryan?

Rep. Paul Ryan

Rep. Paul Ryan

disinformation’s readers come through yet again. Responses to my last blogpost were extremely varied and thought provoking, with some well-reasoned and others less so.  The persistence of themes played out in some of the latter so impressed me that it well pleases me to once again examine the big ol’ “Fail” written all over Paul Ryan’s (R-WI) endorsement of the Laffer Curve, especially its implications for ‘The Velocity of Money’.

Remember ‘The Velocity of Money’?  That’s the basic economic concept introduced in our post about the hypothetical castration of Goldman Sachs.  It’s a thumbnail measure of how efficiently an economy employs its capital—the more often a single dollar is spent during a given year, the higher the rate of employment.  Any number of other theoretical implications can be drawn from that;  the higher the rate of employment, the greater economic, social and political equality, the higher the rate of technological innovation, etc., etc.… Read the rest

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