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View Diary: Salon [re CPI]: "...outraged progressives are organizing in advance " (143 comments)

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  •  Completely unrealistic and unsupported (1+ / 0-)
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    VClib

    First, look at the biggest one -- the Wall Street transaction tax.  That is not feasible unless it is a global tax.  Those kinds of transactions are very mobile, and if you tax them here, people will just do trading on overseas exchanges.  When I've seen projections like that, they are basically what would be earned if we imposed such a tax AND if we continued to have the same amount of trades here.  That assumes that people don't change behavior so as to avoid paying taxes -- which is completely unrealistic. So, before I can give that number any credibility whatsoever, I need to know what assumptions go into that number, and how does it account for the trades that will go overseas if we impose such a tax here in the United States when it is not on trades made on overseas exchanges.  

    Second, what corporate tax loopholes?  When I've seen numbers like that, it often involves "we should tax overseas profits" or something like that, without any mention of how you can do that in a way that will work, and will actually raise that kind of money.  When you talk about real "loopholes" you can close here, like oil and gas "subsidies," they are actually must smaller numbers.  At any rate, if you look at our STATED corporate tax rate (35%), it is one of the highest in the world and is completely not competitive (in terms of global investment.  It is those "loopholes" which drive the EFFECTIVE tax rate down and keep us somewhat competitive.  So, nobody is going to just close the loopholes and keep that rate at 35% -- which is generally what those kinds of estimates assume.  Instead, what we are far more likely to do -- and what the President supports -- is closing loopholes AND lowering rates to keep our effective corporate tax rate competitive with the rest of the world.  

    I could go on and on.  You need to give some indication of the bases for those estimates before they will have any credibility.  

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