National Debt Clock

Thursday, June 4, 2009

Ballmer Says Tax Would Move Microsoft Jobs Offshore

You get what you reward for, or in this case penalize for. Yes, the current tax code allows for companies to shelter their earnings overseas. I'm not here to debate whether that is right or wrong, simply that it is an obvious bi product of our extremely complex tax code. Of course companies are going to find loopholes. While Ballmer claims that the new tax code will be unfavorable, I venture to guess that in a couple years time, new loopholes will have emerged and exploited. The problem isn't that companies are finding ways to evade paying certain taxes, as Obama would have you believe, the problem is that any tax code as complex as ours will always have loopholes. Therefore, the solution isn't to add more lines to our tax code, but simplify it. Or, rather lower are 2nd in the world corporate tax rate. If you are looking to jump start the economy, it isn't to find ways to tax companies more, but less, thus spurring innovation and driving sales. That increase in sales will then increase tax revenues. Obama would be wise to not complicate the tax code further with more rules and regulations, but simplify it to the point where companies can easier understand what they have to pay and not be incentivize to hide their money in lower-tax foreign countries.

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