Hillary Clinton Proposes Tax Increases

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Here we go again! It is campaign season and some candidates just cannot wait to say how they are going to penalize business. Hillary Clinton is proposing a new scheme where businesses that manufactured things will be tax differently than businesses that are “trading” items. I am not exactly sure what this means but it sounds to me like a tax increase on service businesses and for people who invest in business.

Let us face it, manufacturing has been on a continual decline in this country for the past 60 years. The US is known for producing intellectual property and services that are the envy of the world. Hillary Clinton, as well as some of her tax and spenders just do not get it! If you increase taxes on something you will get less of it. Increase tax on business and you will have less business in the US.

I have clients all over the world. Many times a client chooses to locate its business outside of the US because of the very high cost of taxation particularly on worldwide income. Most countries simply tax income when earned in that country. If you are a US business or US citizen (including a permanent resident or green card holder) you are taxed on your worldwide income not just the money earned in the US. This has made us uncompetitive!

Instead of attacking businesses and calling for tax increases, I am waiting for politicians to talk about true tax simplification and tax reduction. That will mean reducing government spending but it will enable the economy to grow.

Original Post By:  Ronald Cappuccio

Ronald J. Cappuccio, J.D., LL.M. (Tax), business and tax attorney, has more than 30 years of tax and business law experience. As a lawyer since 1976, admitted to practice before NJ State and Federal Courts, including the US Tax Court and the Court of Federal Claims, I have helped clients from around the U.S. as well as multi-national clients. I have dedicated my life to agitating people – especially the IRS and government functionaries. I have never worked for the IRS and therefore I do not have to worry about them as former colleagues. Fighting the government so you can keep your money is just plain fun for me!

One comment

  1. John Stancil says:

    Sounds to me like she might be talking about a Value Added Tax (VAT).

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