Roger Conklin on the stupidity of US tax law

Roger Conklin is an incredibly articulate proponent of abolishing citizenship-based taxation. Time after time he has demonstrated the linkage between the US  trade deficit and its tax policies (including citizenship-based taxation).

Here are two of his best comments from the Isaac Brock Society:

http://isaacbrocksociety.ca/2012/11/20/coerced-foreign-tax-compliance-is-killing-american-jobs/comment-page-1/#comment-95229

Maybe you’d like some of his comments at: http://isaacbrocksociety.ca/2012/11/17/full-disclosure-needed-just-what-is-us-tax-compliance-requirement-for-albertas-recruitment-of-oilsands-workers/

Roger Conklin
Submitted on 2012/10/30 at 5:21 pm

*When a “study” like this is made those performing the study decide what they want to results to prove and then structure their “facts” so the results will support their already-decided conclusions.

Territorial taxation creates jobs at home rather than rewarding shipping them abroad. Check the figures and draw your own conclusions.

Here are some of the countries with territorial tax systems and their corresponding 12-month trade balances: None of the countries in this categary subject their overseas citizens to home country taxation of their foreign income. Not even one.

Germany, $239 billion trade surplus

Netherlands, $58 billion trade surplus

Denmark, $14 billion trade surplus

Russia, $203 billion trade surplus

Switzerland, $27 billion trade surplus

Australia, $19 billion trade surplus

Brazil, $23 billion trade surplus

Canada, $1 billion trade surplus

Ireland, $58 billion trade surplus

Korea,, $28 billion trade surplus

And the list of the “territorial taxation” conuntries goes on and on. Low-wage China, by the way, has a $184 billion trade surplus, which is $77 billion less than the trade surplus of high-wage Germany. Gemany also currently has the lowest unemployment rate in 20 years.

There is much more to success in selling your products in the export market than price, as is well-substantiated by this data. It is far more dependent on a nation’s fiscal tax policies than many of the so-called experts, on both sides of the aisle, are willing to acknowledge.

Below is a list of countries that subject its corporations to world-wide taxaton. They pay taxes abroad and then are taxed again when they remit foreign profits back home. They also subject their citizens living overseas to home-country taxation on income that has already been taxed once by the foreign country where they live and work, whether it is remitted back to their country of citizenship or not.. Here is the complete list of countries in this category:

United States of America, $750 billion trade deficit

(That’s right, there is only ONE country {USA} in this latter category.)

Trade statistics above are as published on-line by The Economist, October 13, 2012

Roger Conklin
Submitted on 2012/09/26 at 4:47 pm

*The US is still the largest manufacturer in the world, but these numbers clearly demonstrate the absolute unsustainability of its failure to export. And one of the key factors in this failure to export is its fiscal punishment of its citizens who relocate abroad to sell what we make through its repressive citizenship based tax policy (with all the high-cost tax assistance citizens who live and work abroad must employ in order to avoid massive penalties), as well as the double taxation of repatriated foreign earnings of subsidiaries abroad that have to be established to sell and service them. These are not tax revenue enhancers but tax revenue killers.

Look at the other end of the table and there is Germany with its massive positive balance of payments surplus. The difference is tax policy. Germany considers its citizens who create jobs at home by going abroad and capturing foreign markets as patriots. Germans are not double taxed to keep them home.

But practically every Senator and Congressman in Washington will tell you that every American who lives and works abroad is a tax-evading traitor. And while criticizing US industry for failing to export, they go out of their way to punish them tax-wise if they invest abroad to sell and support what is exported. So they don’t even try. It is the US Government, not China, that has tipped the playing field against us. If that is not the case, then explain what it is that China does to block exports from the US that it does not do to block imports from Germany? Germany has the largest trade surplus and positive balance of payments in its history and the lowest unemployment rate in 20 years. What a contrast in comparison to the US.

The bottom line of this crazy policy is massive trade deficits and a totally out of control balance of payments deficit.. Without exporting to pay for imports, we have to borrow from others; mainly China.How much longer can this go on? We don’t have a position of strength in getting tough with China, regardless of what both Romney and Obama seem to think.

We are going to have to learn the lesson of Greece before we know it. And that will not be fun. My days are numbered, but I fear for my children and grandchildren.

You reap what you sow. The law of the harvest, like the law of gravity, is not subject to Congressional or Presidential repeal.

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One thought on “Roger Conklin on the stupidity of US tax law

  1. Pingback: The Isaac Brock Society | What Canada Allows by Signing the ‘Savings Clause’ in the US-CDN Tax Treaty

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