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Exactly, eliminate tax shelters too! Expose the true financial reality to the tax system and a more equitable taxation policy can emerge. Although you'll have t

Exactly, eliminate tax shelters too! Expose the true financial reality to the tax system and a more equitable taxation policy can emerge. Although you'll have to mitigate a subset of people passing their income through foreign banks.

clairity 6y ago
> "you'll have to mitigate a subset of people passing their income through foreign banks." just tax it like any other income, which will likely allow the overall rate to be a bit lower. there's no moral or legal reason not to. the wealthy might threaten to leave (and take their tax payments with them), but it's largely a hollow threat, as people really want to live among their friends, peers, families, communities, their familiar amenities, and their accumulated stuff.
- Nbox9 6y ago
  There are a ton of loopholes involving foreign banks. It’s more complex than “just tax it.” How do you tax income in a foreign bank if the bank doesn’t respond to IRS’s request for information?
  - clairity 6y ago
    you fine both bank and client for that behavior, and use the same might to pressure change that we've used against multiple small countries. it's not that hard policy-wise, but political will is certainly harder to muster.
    - Nbox9 6y ago
      I disagree that if a bank in _generic foreign country_ doesn’t work with _us agency_ we should start politically pressuring the _generic foreign country_. Sure, while we do this we will start catching loop holing billionaires, but we will also begin effectively putting the IRS in a position where it knows (or can learn about) about literally every transaction in the entire global banking system. This seems like an undesirable outcome.
  - kwhitefoot 6y ago
    You tell the taxpayer that you will just stipulate a very large sum until they instruct their bank to hand over the details. If they are willing to pay the stipulated amount instead of handing over the data you raise it because it was obviously too low.
scottlocklin 6y ago
Americans basically can't use foreign banks in the way you say; in fact it's quite difficult to use them at all and remain a US citizen. The primary way the wealthy keep their money is by putting it in trust funds; non profits basically. That's where zuckerschmuck and Gates keep their dough. I'm all for getting rid of those, but most people will whine it nukes their favorite charity.
- Meandering 6y ago
  I was thinking along the lines of funneling income payments through corporate shells in foreign countries in order to evade personal taxes. There are tons of ways techniques. The tax code enables this abuse increasing complexity and establishing loop holes. These benefits become virtually meaningless to the greater population and only works to the advantage of a few.

clairity 6y ago

> "you'll have to mitigate a subset of people passing their income through foreign banks." just tax it like any other income, which will likely allow the overall rate to be a bit lower. there's no moral or legal reason not to. the wealthy might threaten to leave (and take their tax payments with them), but it's largely a hollow threat, as people really want to live among their friends, peers, families, communities, their familiar amenities, and their accumulated stuff.

Nbox9 6y ago
There are a ton of loopholes involving foreign banks. It’s more complex than “just tax it.” How do you tax income in a foreign bank if the bank doesn’t respond to IRS’s request for information?
- clairity 6y ago
  you fine both bank and client for that behavior, and use the same might to pressure change that we've used against multiple small countries. it's not that hard policy-wise, but political will is certainly harder to muster.
  - Nbox9 6y ago
    I disagree that if a bank in _generic foreign country_ doesn’t work with _us agency_ we should start politically pressuring the _generic foreign country_. Sure, while we do this we will start catching loop holing billionaires, but we will also begin effectively putting the IRS in a position where it knows (or can learn about) about literally every transaction in the entire global banking system. This seems like an undesirable outcome.
- kwhitefoot 6y ago
  You tell the taxpayer that you will just stipulate a very large sum until they instruct their bank to hand over the details. If they are willing to pay the stipulated amount instead of handing over the data you raise it because it was obviously too low.

scottlocklin 6y ago

Americans basically can't use foreign banks in the way you say; in fact it's quite difficult to use them at all and remain a US citizen. The primary way the wealthy keep their money is by putting it in trust funds; non profits basically. That's where zuckerschmuck and Gates keep their dough. I'm all for getting rid of those, but most people will whine it nukes their favorite charity.

Meandering 6y ago
I was thinking along the lines of funneling income payments through corporate shells in foreign countries in order to evade personal taxes. There are tons of ways techniques. The tax code enables this abuse increasing complexity and establishing loop holes. These benefits become virtually meaningless to the greater population and only works to the advantage of a few.