5 ms·

Won't higher taxes here in the US drive more and more business overseas (specifically to China) and further exacerbate the problem of income inequality? We alr

Won't higher taxes here in the US drive more and more business overseas (specifically to China) and further exacerbate the problem of income inequality? We already see corporations keeping massive amounts of capital overseas because of high tax rates. That money should and could be here in the USA.

camhenlin 11y ago
Yes but it won't matter because the newly displaced workers will receive basic income!
tangent128 11y ago
What value exists in bringing that capital back "in" to the USA if it provides no benefit to US citizens in doing so?
- randyrand 11y ago
  Its almost impossible to bring in wealth and not have it benefit people. People dont keep their trillions of dollars under the mattress. Its invested.
  - noobermin 11y ago
    >Its almost impossible to bring in wealth and not have it benefit people. Tell that to Bernie and Trump supporters so they can all pipe down.
spinlock 11y ago
businesses would look at total operating costs. Taxes are increased but payroll is decreased. It's a win if you can structure it such that the savings in payroll are greater than the increase in tax.
bufordsharkley 11y ago
This is one reason why a UBI really needs to be attached to something that can't leave the country, namely a land-value tax.
virmundi 11y ago
I agree, but the theory goes that eventually tax havens will disappear. Europe would probably adopt UBI along with us. So those lower rates would go away. China would do something similar or would be too scary for westerners to fully flee to. Right now many companies are fleeing to Europe for better corporate rates while their C level employees benefit from lower personal tax rates in the US.
- home_boi 11y ago
  Or some countries will take advantage of these fleeing westerners and keep their tax rates lower than the US
  - virmundi 11y ago
    True. Then the US has to lower its rates or the low tax company has to increase due to social unrest. We see this with China. The rising wealth of the writing class is causing party increases. So large that work us coming back to the US or to other south Asian countries.
- randyrand 11y ago
  Or any enterprising country will keep their tax rates low and take all the manufacturing business. Go figure.
msellout 11y ago
Empirically, no. Or at least not to the extent that many people fear. Many businesses are headquartered in NYC, despite the city's extra taxes.
- Turing_Machine 11y ago
  They may be "headquartered" in NYC, but they're domiciled in Delaware, Nevada, etc. and their production facilities are located in China or Indonesia.
  - msellout 11y ago
    They still employ a large number of New Yorkers. And it's not just New York. Take any major city. Better employee productivity balances the higher costs. Not always, so some companies relocate. But many stay.
ThrustVectoring 11y ago
That's a most of why I'd like to fund GBI in part with a land-value tax.

camhenlin 11y ago

Yes but it won't matter because the newly displaced workers will receive basic income!

tangent128 11y ago

What value exists in bringing that capital back "in" to the USA if it provides no benefit to US citizens in doing so?

randyrand 11y ago
Its almost impossible to bring in wealth and not have it benefit people. People dont keep their trillions of dollars under the mattress. Its invested.
- noobermin 11y ago
  >Its almost impossible to bring in wealth and not have it benefit people. Tell that to Bernie and Trump supporters so they can all pipe down.

spinlock 11y ago

businesses would look at total operating costs. Taxes are increased but payroll is decreased. It's a win if you can structure it such that the savings in payroll are greater than the increase in tax.

bufordsharkley 11y ago

This is one reason why a UBI really needs to be attached to something that can't leave the country, namely a land-value tax.

virmundi 11y ago

I agree, but the theory goes that eventually tax havens will disappear. Europe would probably adopt UBI along with us. So those lower rates would go away. China would do something similar or would be too scary for westerners to fully flee to. Right now many companies are fleeing to Europe for better corporate rates while their C level employees benefit from lower personal tax rates in the US.

home_boi 11y ago
Or some countries will take advantage of these fleeing westerners and keep their tax rates lower than the US
- virmundi 11y ago
  True. Then the US has to lower its rates or the low tax company has to increase due to social unrest. We see this with China. The rising wealth of the writing class is causing party increases. So large that work us coming back to the US or to other south Asian countries.
randyrand 11y ago
Or any enterprising country will keep their tax rates low and take all the manufacturing business. Go figure.

msellout 11y ago

Empirically, no. Or at least not to the extent that many people fear. Many businesses are headquartered in NYC, despite the city's extra taxes.

Turing_Machine 11y ago
They may be "headquartered" in NYC, but they're domiciled in Delaware, Nevada, etc. and their production facilities are located in China or Indonesia.
- msellout 11y ago
  They still employ a large number of New Yorkers. And it's not just New York. Take any major city. Better employee productivity balances the higher costs. Not always, so some companies relocate. But many stay.

ThrustVectoring 11y ago

That's a most of why I'd like to fund GBI in part with a land-value tax.