Why are the Democrats so shy of revamping the US tax code?
President Barrack Obama has announced his plans to reduce the growing rate of tax inversion in the country rather than just lowering the highest corporate tax rate in the country. His socialist philosophy is ingrained in stone and for some reason he does not believe American companies help anyone out. It is, as he calls it, an ‘unpatriotic move’ for American companies to change their tax domicile to a foreign country just so they can avoid his punishing taxes that are headed to Sandra Fluke so she has all the contraception she needs.
This temporary move (yes, some people call it temporary because very soon innovative and job creating companies will find another way to get around the asinine sanctions) begs one to question why the White House is so set against making some major changes in the tax system that will keep companies happy and stop the economy from bleeding tax revenue.
High tax rates a major reason for tax evasion
Everyone knows that the main reason why companies are migrating to tax heavens abroad is because of the high tax rates in the US. Republicans have been saying for a long time how they want to lower and simplify the US taxation process. But tax attorneys who have been dealing with this issue say that it is not going to be as easy as it sounds because Harry Reid and Nanci Pilosi receive large donations from accounting groups to keep the process complicated. Though many in Congress do want a tax reform, an overhaul is not going to be forthcoming soon because the Democrats control the senate.
In February of 2012, the White House and the treasury department had put out a paper titled the “President’s Framework for Business Tax Reform”. This white paper was supposed to carry all the details and nuanced propositions for changing the tax system in the country that Obama has been thinking of. Before this, in November of 2005 the then President George Bush had received a report from the Advisory Panel on Federal Tax Reform which called for a revamping of the tax code. The need is urgent, and it is evident to one and all. But the million dollar question is; why isn’t anyone in Congress doing anything about it?
As already state, the Democrats receive millions of dollars from the accounting industry to keep the system complicated so they can make a nice living. Bush should have simplified the tax code – his neglect on this issue has hurt America ever since. But at least he lowered taxes, allowed energy companies to create jobs for America which is not happening that much now, killed terrorists which the current American President is not doing nearly enough of, and worked well with America’s allies as well with Obama does not care to do at all.
The accounting industry is very powerful
The Democrats lackadaisical attitude towards a complete reform has made many companies think that the issue of tax migration isn’t something to be scared of. In fact, the lawmakers’ blasé attitude is partly to blame for the large number of companies that have fled to foreign shores. In the absence of a crackdown, everyone is doing as they please say corporate tax attorneys. Well, under this hostile regime, the private sector is just trying to survive this administration.