US Companies are Getting Out of Dodge, IRS in Hot Pursuit

Skyscrapers of Shinjuku (Photo by Morio) (CC BY-SA) (Resized/Cropped)
The US is tied with Puerto Rico for the third highest corporate marginal income tax rate in the world (39%). The tax comes directly out of investment, employment, output, and taxable individual income from dividends, wages and salaries. And what does Treasury spend their tax collections for? Well, not roads, highways and bridges. After the Bush and Obama fiscal stimulus neither the shovel-ready nor the unready got funded. The Ds and the Rs now say they will set that straight… if we will but vote for them one more time again. Yeah, and elephants will fly.
So, US companies are getting out of Dodge with the IRS in hot pursuit. The simplest way to stop and reverse the hemorrhaging is to lower the tax to a good round number like 0. I am interested in what is wrong with this argument; why it is better to keep it at 39% and pursue the flight to foreign countries. Be the devils advocate here.
http://www.wsj.com/articles/facebook-gets-tax-notice-over-transfer-of-assets-overseas-1469750400
Dr. Vernon L. Smith was awarded the Nobel Prize in Economic Sciences in 2002 for his groundbreaking work in experimental economics. Dr. Smith has joint appointments with the Argyros School of Business & Economics and the School of Law, and he is part of a team that will create and run the new Economic Science Institute at Chapman.
Dr. Smith has authored or co-authored more than 250 articles and books on capital theory, finance, natural resource economics and experimental economics. He serves or has served on the board of editors of the American Economic Review, The Cato Journal, Journal of Economic Behavior and Organization, the Journal of Risk and Uncertainty, Science, Economic Theory, Economic Design, Games and Economic Behavior, and the Journal of Economic Methodology. He is past president of the Public Choice Society, the Economic Science Association, the Western Economic Association and the Association for Private Enterprise Education. Previous faculty appointments include the University of Arizona, Purdue University, Brown University, the University of Massachusetts, and George Mason University, where he was a Professor of Economics and Law prior to joining the faculty at Chapman University. Dr. Smith has been a Ford Foundation Fellow, Fellow of the Center for Advanced Study in the Behavioral Sciences and a Sherman Fairchild Distinguished Scholar at the California Institute of Technology.
In 1991, the Cambridge University Press published Dr. Smith’s Papers in Experimental Economics, and in 2000, a second collection of more recent papers, Bargaining and Market Behavior. Cambridge published his Rationality in Economics: Constructivist and Ecological Forms in January 2008. Dr. Smith has received an honorary Doctor of Management degree from Purdue University, and is a Fellow of the Econometric Society, the American Association for the Advancement of Science, and the American Academy of Arts and Sciences.
Dr. Smith is a distinguished fellow of the American Economic Association, an Andersen Consulting Professor of the Year, and the 1995 Adam Smith Award recipient conferred by the Association for Private Enterprise Education. He was elected a member of the National Academy of Sciences in 1995, and received CalTech’s distinguished alumni award in 1996. He has served as a consultant on the privatization of electric power in Australia and New Zealand and participated in numerous private and public discussions of energy deregulation in the United States. In 1997 he served as a Blue Ribbon Panel Member, National Electric Reliability Council.
Dr. Smith completed his undergraduate degree in electrical engineering at the California Institute of Technology, his master’s degree in economics at the University of Kansas, and his Ph.D. in economics at Harvard University.
Trending Now on Affluent Christian Investor
Sorry. No data so far.
The Affluent Mix
Another Theologian Falls For Socialism February 17, 2021 | Roger McKinney

GDP Bounced Back, Sort Of February 17, 2021 | Jerry Bowyer

Apathy And Envy For All February 17, 2021 | Jim Huntzinger

The Global Stock Market Decompression February 17, 2021 | Jerry Bowyer

Why Things Are Bad And What You Should Do About It... February 17, 2021 | Terry Applegate

Gamestop Scandal: Who Is The Real Culprit?... February 11, 2021 | Roger McKinney

Who Has Economic Mobility? Everyone! February 11, 2021 | Jim Huntzinger

Biden Deletes China COVID Evidence February 11, 2021 | Frank Vernuccio

How Companies Pay Shareholders: High Earnings Quality Companies Do More Buybacks... February 11, 2021 | Jerry Bowyer

Volatility Vs. Capital Erosion February 11, 2021 | David Bahnsen

When Will The Party End? February 11, 2021 | Michael Pento

Back To Buybacks: Is It More About Dilution Than Concentration?... February 11, 2021 | Jerry Bowyer

Even Amnesty International Is Criticizing Facebook Censorship... February 5, 2021 | Frank Vernuccio

The War On Poverty’s Results February 5, 2021 | Jim Huntzinger

How Companies Pay Shareholders: Total Shareholder Payout A Better Approach?... February 5, 2021 | Jerry Bowyer

Interest Rate Threshold Keeps Dropping February 5, 2021 | Michael Pento

You Are What You Live Through As An Investor... February 5, 2021 | David Bahnsen

How Companies Pay Shareholders: What Do The Data Say?... February 5, 2021 | Jerry Bowyer

Stop Griping About Big Tech And Start Voting Your Shares... January 29, 2021 | Charles Bowyer

No, Rev. Warnock, The Bible Does Not Preach Socialism!... January 29, 2021 | Roger McKinney

Does The U.S. Actually Have Poor? January 29, 2021 | Jim Huntzinger

Incompetence Rules Blue States January 29, 2021 | Frank Vernuccio

Join the conversation!
We have no tolerance for comments containing violence, racism, vulgarity, profanity, all caps, or discourteous behavior. Thank you for partnering with us to maintain a courteous and useful public environment where we can engage in reasonable discourse.