Here’s some statist logic: we continually raise taxes on businesses which burdens both the consumer and the business. The company cannot expand as quickly, nor hire as many employees due to the tax rate. When that company decides to move out of our tax jurisdiction in order to better provide for their customers, employees, and investors, we accuse them of being selfish, corrupt, and unpatriotic. Even though the money taken through taxes by force is often wasted, given to friends of the elite, used to benefit cronies, or spent on jobs and handouts to boost reelection chances of politicians, it is the companies who earned the money, and created the wealth who are the “greedy” ones.
I am talking of course about Burger King’s plan to move its base to Canada in order to take advantage of the 26% tax rate, instead of the 40% rate it pays in America. Hey, maybe they can afford to pay more than minimum wage with all the money they save? But that still wouldn’t make the state lovers happy. Unless businesses and people submit 100% to the government overlords, the state will demonize them.
Obama has called companies that engage in inversions “corporate deserters.” And Treasury Secretary Jack Lew has criticized the companies for failing to practice “economic patriotism.”
“I don’t care if it’s legal. It’s wrong,” Obama told a crowd last month.
But stealing 40% of the company’s wealth each year is not wrong? Why do we allow the government to posture as benevolent public servants, when it is so obviously not true. They are selfish thieves and public slave-masters. The government adds nothing of value to the economy, except by restricting private businesses from supplying particular consumer demands, at which point the government provides a worse product/ service for a higher cost.
The easiest examples of this are the post office, versus private shipping, or the failure of government backed green energy companies to produce alternative energy. The argument can also be made that government roads are more expensive and more shoddy than private roads, though the examples are few due to the government force exerted to complete the projects. And I would certainly argue that the police pose more of a danger to the public since they do not have to compete to deliver a better product for a lower price, as would be required in the private market.
But back to taxes: the Burger King Tim Hortons merger in Canada is one of these examples that leaves me exasperated saying “I feel like I’m taking crazy pills!” Warren Buffet is a main financial backer of BK’s move to a slightly less oppressive tax jurisdiction. Warren Buffet, you may recall, is the billionaire who inspired Obama to call for a minimum 30% tax rate on everyone earning $1 million per year or more… Because making a million dollars each year, and making a billion per year is like, the same thing, right?
But I don’t get it. What happened to the selfless Warren Buffet? Hasn’t he earned enough already? Why would he abandon funding the glorious U.S. government and all the philanthropic work it does? It seems Mr. Buffet understands quite well the detriments an excessive tax rate can have on business. Why would he advocate taxing millionaires more, when he himself will not pay higher taxes? Does he not think millionaire would likewise relocate to friendlier tax regions in the event that the government tried to rob them at a higher percentage than it robs most people?
You want businesses to stay in the USA? Repeal the 16th Amendment authorizing the income tax, abolish the IRS, and get rid of all corporate taxes. Defund the federal government, all the “good” they do is a myth. Let the states compete, and we will see what policies create economic opportunities, and which ones stifle growth by killing the individual freedom to keep the wealth you have created, and retain what is rightfully yours.