Sunday, April 29, 2012

US Tax Code is Particularly Lopsided against Individuals and towards Corporations

The US has a particularly punitive tax regime on individuals. Not only are they taxed on their worldwide income but even if they move abroad they are still taxed. Even if you renounce your US citizenship there is a big expatriation tax to pay. They used to try to collect tax for another ten years...

By contrast, companies are only taxed on the profits they earn within the US and can employ all kinds of strategies to reduce tax by earning profits offshore. Though I am against double taxation of income (taxed at corporate and then again at individual level) this kind of lopsided tax regime is unfairly taxes different companies at different rates and makes the whole tax system look manifestly unfair.

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