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"donate to a nonprofit" is not 'tax evasion' (which is illegal) You could argue it's tax avoidance, but it's not even that, it's just making a donation, and th
by sonnyblarney 7y ago
"donate to a nonprofit" is not 'tax evasion' (which is illegal)
You could argue it's tax avoidance, but it's not even that, it's just making a donation, and that's how they are taxed. It's part of your normal activity: taxes are higher on some things than others.
Creating a non-profit as a special purpose vehicle would be 'tax avoidance' but if it's legal, it's legal.
The OP's comments are perfectly just i.e. punishing tax havens because there's deep incentive for them to facilitate actual tax evasion, moreover, they enable the stockpiling of surpluses generated elsewhere. Especially for those part of a 'common market' - you can't have taxes at 1% in Malta and 50% and France, it's not going to work.
Dubai does not have any tax deals with the US, it's built on utterly shady tax dealings. Much of the money poured into Afghanistan by the US for reconstruction ends up there, for example. It's super duper dirty.
People are not fleeing China because of 'taxation' in the classical sense, they're fleeing for a pile of other, obvious reasons.
People are however fleeing France, partly due to 'taxation' and this is an issue ... they have some issues with competitively and their solution of 'just tax the rich' will not work out if that's it.
Worth considering: normalize the migration data against 'regular people' and what you'll find is that still a lot of Chinese are moving to Australia/Canada, and in general people are moving there, the US anyhow!
I'll bet the one that sticks out a little is France. I don't suggest a ton of people are leaving, net.
- seibelj 7y ago> You could argue it's tax avoidance, but it's not even that, it's just making a donation, and that's how they are taxed. It's part of your normal activity: taxes are higher on some things than others. Right, but if it's perfectly legal to emigrate to a lower-tax jurisdiction, is that not "part of normal activity"? I think there's an argument to remove the tax deduction for donations. If you are doing it altruistically, then you still owe your fair share to the government, no?