The discussion of “territorial tax” begins at about the 27 minute mark.
Biden: It’s called a territorial tax, which the experts have looked at, and they acknowledge it will create 800,000 new jobs — all of them overseas, all of them.
I couldn’t believe my ears. There he was, doing the “warm up” speech to introduce Obama. In a stunning display of ignorance, Joe Biden:
1. Ridiculed the idea of “territorial taxation” and;
2. Suggested that “territorial taxation” will do nothing but create jobs offshore.
A number of people took note of Biden’s opposition to territorial tax.
This is great news! It increases the chances that “territorial taxation” will be an issue in the campaign. Furthermore, it opens the door to it becoming a topic in the one and only “vice presidential” debate. Paul Ryan supports “territorial taxation”.
In other words Biden is affirming that it is sound policy for the U.S. to tax the profits that U.S. companies earn overseas. It’s as though he believes that U.S. companies are the property of the U.S. government. But, why not? U.S. citizens (according to the U.S.) are the property of the U.S. government. Certainly, as go U.S. companies, so go U.S. citizens.
In an earlier post I argued that U.S. taxation of profits earned outside the U.S. (“worldwide taxation”), causes severe economic damage to the U.S. The U.S. has by far the highest corporate taxes in the world. By far! “Worldwide taxation” creates disincentives to companies bringing their profits back to the U.S. (“repatriating” profits) Imagine if all of this money could be brought back to the U.S. and put to good economic use. Who knows, maybe the government would be encouraged to do so much spending. But, nobody explains this better than Dan Mitchell.
The Obama Biden ticket is seriously out of touch with economic reality!
Watch the Biden video in its entirety. If you are like me, you won’t believe what you are seeing!