Outrage of the Day: Tax Domestic Income Less Than Foreign Income, and Foreign Income Not at All

FedEx’s Fred Smith says don’t tax foreign income — but treat U.S income even better.  Instead of taxing corporations, government should subsidize corporations?

‘”Smith . . . calls for a ‘territorial tax system,’ which would tax only domestic, rather than worldwide, income, bringing U.S. practice in line with most other rich countries’.” http://www.time.com/time/magazine/article/0,9171,2119336,00.html#ixzz21lFGEgwt

The article goes on:  “Smith supports more incentives for businesses to spend on equipment and software. Right now, because of tax and other policies, Smith notes, ‘if you have a dollar to invest, you are better off investing that dollar someplace other than the United States.'”

What?  If you want tax policy to favor U.S. over foreign investments, don’t ask for territoriality.  It favors foreign operations.

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Author: patoglesby

From 1982 to 1990, I worked in tax policy for Committees of the United States Congress. In recent years, I was Adjunct Lecturer at UNC-Chapel Hill's Business School and then Adjunct Professor at its Law School.

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