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Saturday, August 6, 2011

Inconsistent Tax Treatment

I just realized another unfair bit about the tax system.

If you're a US citizen living outside the USA, the US government claims the power to tax you on income earned in another country.

If a US corporation has income outside the USA, there are plenty of loopholes and tricks. A US corporation typically pays zero US income tax on income earned outside the USA.

The correct answer is "All taxation is theft!" However, individuals and corporations are taxed differently on non-USA income. That's another example of the State biased against individuals in favor of large corporations and insiders.

The net effect of the taxation system is that it transfers wealth from individuals to insiders. Most people believe the opposite, that taxes redistribute wealth from insiders to individuals.

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This Blog Has Moved!

My blog has moved. Check out my new blog at realfreemarket.org.