13 Ways to ‘Tax the Rich’

By Jack Rasmus

Jack Rasmus

The ‘Occupy Wall St.’ movement across the USA has raised the slogan of ‘We Are the 99%’ and the related ‘99% vs. the 1%’. Thus far the idea of taxing the rich has remained stated in general terms. For greater impact it must be further clarified, or else it will be misinterpreted and co-opted by politicians pushing false ideas while claiming to tax the rich but not really doing so—such as the recent proposals by Republican presidential candidate Cain’s phony 9-9-9 or even Obama’s ‘millionaires tax’. The following is an effort to suggest various measures to ‘tax the wealthiest 1%’ that represent true, progressive tax the rich proposals.

Tax Program #4.1: Professional Investors’ Tax Haven Repatriation Tax.

About $4 trillion today is held in offshore tax havens by US investors, individuals and institutions, in island nations like Cayman islands, Vanuatu, Seyschelles, Isle of Man, Cyprus, etc., and in more traditional havens like Switzerland, Lichtenstein, and so forth. The IRS has identified 27 of these, which it calls ‘special jurisdictions’. If just $2 trillion >of that $4 trillion was required to be re-deposited in US banks, those investors would have to pay the 35% top tax bracket personal income tax on the $2 trillion in the first year, raising about $700 billion. Future earnings on the remainder would also be taxed in the second to fifth years, yielding another $200 billion a year. Refusal to repatriate could result in a 10% penalty after 90 days, followed by similar penalties. Countries that refused to cooperate should have their US based assets frozen and then taxed until compliance.

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How U.S. corporations avoid paying taxes

WASHINGTON, DC - DECEMBER 01:  Senate Finance ...

Image by Getty Images via @daylife

Some of the nation’s largest corporations have amassed vast profits outside the country and are pressing Congress and the Obama administration for a tax break to bring the money home.
But Nobody Pays That : From the N.Y. Times

Billions Offshore

Articles in this series will examine efforts by businesses to lower their taxes and the debate over how to improve the tax system.

Apple has $12 billion waiting offshore, Google has $17 billion and Microsoft, $29 billion.
Under the proposal, known as a repatriation holiday, the federal income tax owed on such profits returned to the United States would fall to 5.25 percent for one year, from 35 percent. In the short term, the measure could generate tens of billions in tax revenues as companies transfer money that would otherwise remain abroad, and it could help ease the huge budget deficit.

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Meanwhile, working people suffer job loss, union busting, and political attacks.

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