A Fine Mess
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Asia, 59, 201
audits, 40, 55, 143–44, 161, 163, 211, 223, 255
Austen, Jane, 121
austerity measures, 34, 42, 52, 112, 127, 129
Austin, Texas, 26
Australia
and carbon tax, 8, 189–91
tax deductions in, 36, 41, 89–90
tax rates of, 19, 21, 146, 175
tax revenues of, 15, 17
VAT in, 228, 239, 243, 255
Austria, 14, 17, 19–20, 44, 78, 86, 132, 146
automobile industry, 21, 39–40, 71–74, 156, 164. See also cars
Bahamas, 193, 207
bailouts, 116, 122, 156, 182–83
Baker, James, 66–67
Bakija, Jon, 43, 238
Balzac, Honoré de, 121
banks, 89, 181
bailouts of, 122, 182–83
in eastern Europe, 95, 103
and filing returns, 220–21, 223, 255
and governments, 33–34, 129
secret accounts of, 198, 200–207
and tax avoidance, 147, 160, 167, 200–207
See also savings
Bartlett, Bruce, 245–46
Belgium, 14, 16–18, 38, 50, 87, 133, 136, 146, 164, 183, 239
Bermuda, 151–52, 156, 166, 193–94, 202
Bharara, Preet, 206
Bird, Richard M., 44, 139, 229, 244, 247
Blankfein, Lloyd, 117
Bloomberg, Michael, 176–78
Bloomberg Businessweek, 153
Boháček, Radim, 94, 108–9
Boulder, Colorado, 180, 188
Bradley, Bill, 66–68, 251
Brazil, 39, 181
British Virgin Islands, 200, 203
broad base, low rates (BBLR)
advocates for, 56, 91, 218–19
explanation of, 52–57
in New Zealand, 57–63, 79, 86, 136
as successful formula, 48, 251–52
and tax breaks, 81, 86, 91, 109
and tax reform, 125, 225
in U.S., 66–70, 73, 165–66, 236, 251–52, 255
brokerages, 65, 183, 205, 221, 223
Buffett, Warren, 136–38, 253–54
Bulgaria, 106, 110
Bush, George H. W., 101, 245–46
Bush, George W., 42–43, 56, 88, 101, 108, 131–32, 241–43
Bush, Jeb, 43, 138
business flat tax (BFT), 246–48
Cain, Herman, 96, 108
California, 20, 60, 149, 170, 179–80, 222, 224
Cameron, David, 200
Canada, 9, 21, 36–38, 57, 122, 132
and charitable donations, 24, 86
corporate taxes of, 146, 155
GST in, 228, 235–37, 239, 243–44, 255
tax deductions in, 86, 89–90
tax reform in, 69–70, 243–44
tax revenues of, 15, 17
and U.S. corporations, 154–55
cap-and-trade system, 188–90
capital gains tax, 88, 133, 256
explanation of, 17–19, 69, 233
increasing rate of, 137, 170
in Middle East, 192–93
reduced rate for, 70, 124, 136–39, 160, 241
and the rich, 70, 99, 124–25, 132, 136–39
and tax reform, 68–70, 254
Capital in the Twenty-First Century (Piketty), 115, 121–25, 128, 136, 139, 171–73
capital investment, 23, 56, 102, 114, 123, 136–39, 168
capitalists/capitalism, 29, 94, 101–3, 114, 170
carbon tax, 8, 133, 185–91
carried-interest preference, 137–39
cars, 107–8, 128
electric, 36, 71–73, 80, 251
fuel efficiency of, 21, 39–40
tax breaks for, 71–74, 80, 81, 122, 222, 251
See also gas tax
Carson, Ben, 8, 95
Caterpillar Inc., 141–45, 148, 153–54, 162–63
Cayman Islands, 117, 139, 193, 195, 202, 204, 207
CEOs, 98–99, 117, 122, 128, 150, 154
charitable contributions, 36, 203
of Americans, 13, 24, 53, 138
deductions for, 1, 8–9, 40–41, 53, 55, 61, 69, 79, 81–87, 221, 252
problems with, 82–87, 90
Chicago Tribune, 158
children, 36, 53, 55, 70, 78, 80, 176, 250, 256
Chile, 14, 16, 25, 51, 120, 146, 179, 239
China, 22, 32, 149, 171, 198, 200, 239
Choosing a Broad Base–Low Rate Approach to Taxation (OECD), 57
Christensen, John, 204
Chronicle of Philanthropy, 82
churches, 24, 53, 61, 82–84, 93
cigarette tax, 10, 21, 37–38, 40, 176
citizenship, 28–30, 36–37, 46–48, 194–95
Clausing, Kimberly, 165, 169
climate change, 185, 188–89
Clinton, Bill, 101, 188, 211
Clinton, Hillary, 138, 254
Clyde, Lord, 159
Collet, Martin, 125–26, 128
Commerce Clearing House, 212–13
commodities, 18–21, 37–39, 123, 237, 239–40
Common Market, 228
community programs/services, 27–33
commuting to work, 10, 36, 40, 80
Compañía General de Tabacos de Filipinas v. Collector of Internal Revenue, 30–32
competition, economic, 106, 108–10, 112, 127, 145, 164, 234, 256
conservatives, 43, 119, 133, 170
on flat tax, 100, 104, 108
on progressive taxes, 44–45, 62, 112
on tax reform, 64–67
on VAT, 235–36, 243–46, 248
See also Republicans
Constitution of Liberty, The (Hayek), 45
consumer spending, 41–42, 57, 114, 174, 233–39, 243
consumption tax, 35–39, 170, 233–34, 238–48, 255. See also value-added tax (VAT)
Cook, Tim, 150–51, 154
corporate income tax, 75, 128, 154, 156, 173, 191–92, 233
avoidance of, 22–23, 31, 54, 139, 142–70, 252
elimination of, 150–51, 169–70, 246
and flat-rate tax, 96–97, 108
in flat-tax nations, 110
higher in U.S., 13, 21–22, 145, 148, 164–65, 234, 252
lowering of, 11, 21–22, 64, 69, 145, 148, 165–66, 234, 245, 251–54
in other nations, 21–25, 36, 110, 142, 145, 149, 166–67, 175, 252
reform of, 164–70, 252–53
corporations, 11, 63, 74, 122, 214, 256
back taxes paid by, 163–64
bailouts of, 123, 156
in eastern Europe, 95, 106
overseas profits of, 22–23, 81, 141, 143–58, 161–62, 165–70
and repatriated profits, 167–69
tax breaks for, 56, 59, 68–69, 72, 74, 148, 155–56, 165–70, 252–53
corruption, 46–47, 100, 198, 200
Crassus, Marcus Licinius, 29–30
credits, 2, 5, 41, 55, 71–72, 218
addition of, 64, 70, 209
in corporate tax code, 22, 36, 148, 165–66
elimination of, 56–57, 62, 69, 81, 91, 165–66, 251–52
for low-income people, 237–38
in other nations, 78, 89–90
for political contributions, 36–37
and taxable income, 52–53, 59–60
and tax expenditures, 74–77
Credit Suisse, 207
Cruz, Ted, 8, 95, 246–47
CSARL, 143–45
currency, 29, 32–33, 51, 58, 103, 110, 181, 197–208
custom duties, 34�
��35, 50
Cyprus, 129, 202, 204, 207
Czech Republic, 15, 18–19, 93–94, 106, 108–11, 113, 132
“death tax,” 131–32, 254. See also estate tax
debts/deficits, 33–34, 41, 51, 64, 71–72, 81, 96, 185–86, 193, 238, 243, 256
deductions, 17, 40–41, 55, 103, 155, 159, 246
and corporate taxes, 22, 165–66
elimination of, 56, 60–62, 67–70, 81–82, 97, 100, 109–10, 165–66, 219, 222, 252
explanation of, 72–78
itemized, 87–88
and the rich, 82–83, 86, 88–90
standard, 83, 89
and taxable income, 52–53
and U.S. Congress, 5, 10
See also charitable contributions; mortgage interest
deductions; tax breaks
Delaware, 19, 160, 204
Democrats, 43, 60, 64–68, 117, 132, 148, 162, 188, 190, 245
Denmark, 38, 102, 105, 120
government spending in, 23, 126
high tax rates of, 17, 19
property taxes in, 175
simple tax returns of, 221
tax revenues of, 14, 16, 79, 126
VAT rates of, 239
Depardieu, Gérard, 133–34, 139, 151
depletion/depreciation allowances, 64–66, 69–70
derivatives, 181, 184
dividends, 6, 9, 23, 36, 55, 70, 111, 147, 168, 170, 173, 193, 233, 241, 254, 256
“Double Irish with a Dutch Sandwich,” 151–53, 161, 164
Douglas, Roger, 60–61
dynamic scoring theory, 101
earned income tax credit (EITC), 210, 217–18, 238, 250
East Asia, 21, 23, 228
eastern Europe, 93–95, 101–14
economic growth, 16, 36, 41–43, 50, 52, 55, 91, 101, 104–8, 114, 120, 124, 136, 238
economic impact of taxes, 16, 95, 100–101
Economic Recovery Tax Act of 1981 (ERTA), 64
Economist magazine, 58, 104, 126
education, 36, 44, 53, 63, 70, 79, 84, 105, 117–18, 123, 126–27, 168, 175, 180, 221
Egypt, 200, 239
Eisenhower, Dwight, 2
electronic trading, 181–84
emissions. See carbon tax
Energy Improvement and Extension Act of 2008, 71–73
environment, 51, 168, 189, 191. See also carbon tax
Environmental Protection Agency, 39–40
equality, economic, 120, 124
estate tax, 6, 45, 129–32, 192, 246, 254
Estonia, 15, 94, 102–11, 113–14, 220
e-tax system, 105
European Union, 110, 112
Emissions Trading System (ETS) of, 189
and FTT tax, 180, 183–84
members of, 95, 103, 108, 125
tax dodgers pursued by, 163–64
and VAT, 228, 239–40
exemptions, 1–2, 5, 17, 80, 84–85, 103, 130–31, 220
addition of, 64, 70, 209
in corporate tax code, 22, 148, 165–66
elimination of, 55–57, 97, 100, 109–10, 165–66, 219, 251–52
explanation of, 76–78
and loss of revenue, 41, 78
in paying income tax, 233–34
and taxable income, 52–53, 59–60
and tax expenditures, 74–77
See also tax breaks
expatriation tax, 194
exports, 34, 59–60, 106, 189, 234
Fair Tax Act, 67–68
Farr, Malcolm, 189
fast-food chains, 154–55
fat tax, 38–40, 177–80
FAT tax (financial activities tax), 180–85, 254–55
Federal Deposit Insurance Corporation (FDIC), 34, 182
Fico, Robert, 112
Field, Stephen J., 46
filing returns, 1–2, 214
complexity of, 5–7, 40, 97–98, 211–15, 219, 224
by governments, 219–22, 224, 255
high expense of, 5–6, 212–15, 219, 223–24, 252, 256
online, 105, 220, 255
by precision withholding, 220–21
by pre-filled forms, 221–25
and seven income brackets, 97
simplifying of, 105, 219–25, 252, 255
software for, 6, 213, 215, 224
as time-consuming, 5–6, 212–13, 215, 220, 223–24, 256
financial activities tax (FAT), 180–85, 254–55
financial industry, 137–38, 180–85
financial system, 199, 207
financial transactions tax (FTT), 180–85, 254–55
Finland, 14, 19, 86, 105, 131, 239
Fiorina, Carly, 95, 214
flat-rate income tax, 44
advocates for, 8, 91, 95–100, 104, 106, 111, 253–54
in eastern Europe, 18, 95, 103–14
explanation of, 91, 95–114
problems with, 95–100, 104, 110–11
of Ted Cruz, 246–48
Flat Tax Revolution (Forbes), 99–100, 108
food taxes, 10, 38–40, 52, 55, 178, 200, 237, 239–40. See also sugar tax
Forbes, Steve, 8, 99–101, 108
Forbes magazine, 99, 224
Foreign Account Tax Compliance Act (FATCA), 205–7
Forsberg, Viktor, 104–5, 113–14
Fortune magazine, 162
France, 7, 31, 34, 38, 49, 54, 60, 115, 121, 198–99, 245
and charitable donations, 24, 86
corporate taxes of, 21–22, 145–46, 164
estate taxes in, 131, 133
and FTT tax, 181, 183
and ISF tax, 128–30
tax avoidance in, 133–34, 139, 142, 151, 207, 227–28
taxes on les riches, 17, 125–29, 133–34, 139, 145, 173
tax revenues of, 14, 79, 128, 134
VAT rates of, 184, 194, 239–40
Francis, Pope, 118–19
Franklin, Benjamin, 30, 191
fraud, 51, 206, 213, 218
Free to Choose (Friedman), 103
Friedman, Milton, 103, 109, 175
Friedman, Thomas, 187
gas tax, 10, 13, 17, 19–21, 39–40, 187, 234
General Electric, 169
General Motors, 74, 156
George, Henry, 171–76
Georgia, 110
Germany, 17, 71, 102, 106, 113, 164, 147, 181
BBLR in, 57
corporate taxes of, 22, 146
estate taxes of, 131
and FTT tax, 183
gas tax in, 20–21
Nazi era in, 119, 138
and tax avoidance, 207
tax breaks in, 36, 89–90
tax revenues of, 15, 79
VAT rates of, 239–40
gift tax, 82–86, 130, 246, 254
Gillard, Julia, 190
Gini coefficient, 120, 127
global associations for specific industries, 49–50
global recessions, 112, 116, 182–83, 190, 199
global tax issues, 124–25, 148, 165, 182–83
Global Tax Optimization Program (GTOP), 142–43
global warming, 185, 188–89
Gonzalez, Rick, 157
goods and services tax (GST), 11, 19, 61, 228–29, 235–39, 242–48. See also value-added tax (VAT)
Google, 151–54, 161
government
borrowing, 33–34, 42, 50
confidence in, 46–48
programs, 100, 112–14, 156–58, 186, 256
services, 33, 63, 72, 96, 126, 150, 174, 218, 235, 244
spending, 23–24, 28–32, 48, 74–79, 81, 106, 126–
27, 236, 245, 247
Government Accountability Office (GAO), 147–48, 165, 252
Great Britain. See United Kingdom/Great Britain
Great Depression, 121
Great Recession of 2008–2009, 172, 190
and austerity measures, 34, 52, 112, 127, 129
bailouts after, 182–83
and economic collapse, 41–42, 51–52, 235
and taxes, 41–42, 110, 175
and wealth, 116, 199, 253
Greece, 15, 33–34, 47, 51, 146, 245
Greenspan, Alan, 246
Gregory, Evelyn, 160–61. See also Helvering v. Gregory
gross domestic product (GDP), 14, 23–24, 33, 104, 108, 117, 126, 186
gross receipts tax, 228, 247
Group of Twenty, 182
Guth, Petr, 109
Hall, Robert, 96–97
Hand, Learned, 159–61
Hanseatic League, 102
Hatch, Orrin, 77–78
Hayek, F. A., 44–45
health care, 17, 37–38, 44, 51, 63, 69, 114, 118, 157, 176–80, 186, 221
health insurance, 29, 36, 52–53, 63, 81, 126, 133, 209, 218, 246–47, 251
hedge funds, 137–38, 183
Helvering v. Gregory, 159–61
Hines, James R., 56–57
Hollande, François, 127, 133–34, 142, 151
Holmes, Oliver Wendell, Jr., 30, 32, 36
home ownership, 8–9, 36, 40, 52, 75–81, 87–91, 116, 122. See also mortgage interest deduction; property: taxes
Hoover Institution, 96–97
Hungary, 15, 18–19, 41, 111, 239
Iceland, 15, 129, 200
Illinois, 141–44, 157, 163
immigrants, 155, 192, 194–95, 229
imports, 34, 50, 65, 187, 189, 193
income
definition of, 17–18, 52, 222, 255
distribution of, 44–46, 57
foreign-earned, 22–23, 81, 143–58, 161–64
inequality of, 43–46, 115–25, 135, 139
“ordinary,” 137, 160
seven brackets of, 97
“stateless,” 150, 154
income tax
earned income tax credit, 217
elimination of, 225
history of, 1–3, 12, 34–35, 45–46, 121, 135, 145, 173, 250
nonpayers of, 233–34
rebates of, 41–42
See also specific types
Income Tax, The: A Study of the History, Theory, and Practice of Income Taxation at Home and Abroad (Seligman), 45
India, 34, 129
inequality, economic, 8, 43–46, 98, 107, 115–25, 127, 135, 139, 172–75, 242, 253–56
inflation, 32–33
inheritance tax, 17, 30, 99, 121, 129–33, 254
insurance, 31–32, 60–61, 181–82. See also health insurance
intellectual property, 151–53
interest charges, 9, 33–34, 53, 61, 151, 155, 166, 173, 202, 241