Benefits of Eliminating Income Tax Breaks for Foreign Business Owners

I agree that we should get rid of tax breaks for business owners who set up businesses in foreign countries, since it hurts U.S. business especially in the service industry. Already, domestic tax rates are hardly competitive for technology and service industries, and companies in that area tend to operate on slim margins. Reducing tax breaks for foreign companies as well as increasing tax breaks for U.S. companies will not only stimulate growth but also make us more competitive and accountable in the global and domestic spheres.

Small businesses have a failure rate of higher than 95% in the first year of operation. While this is often the business owner’s fault, taxes and regulations at the company level make it that much harder to operate, leading owners to dodge taxes and regulations at best, and crash and burn in the worst case. Of course, commerce must be taxed, but the difference can easily be made up through several ways: raising taxes on foreign businesses who are not registered in the U.

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S. (which will also eliminate tax havens), raising personal income taxes for the highest brackets, and implementing a progressive capital gains tax at a higher marginal rate, but only for individuals.

Additionally, taxing businesses who rely on public subsidy to operate (ie high carbon output, use of public roads, and welfare/entitlement programs for employees) would not only decrease government spending but also increase gross tax revenue. Over half of food stamp recipients are currently employed — taxing employers who pay wages so low they depend on our money to operate would totally eliminate this while actually increasing income for workers.