Quote:
Originally Posted by Fire
Tax loopholes = Social Engineering
All loopholes should be removed and people should be responsible for themselves. With all the loop holes gone they could also reduce the base rate as well. Let the people decide what to do with their own money.
|
Be careful what you wish for. Some people are so stupid as to make the arguement that 'XYZ Large Corporation paid no tax in 2009 and 2010 so therefore there must be loopholes that must be closed' In reality a lot of companies
lost money in 2009 due to the recession and carried forward their losses and used them againt their 2010 earnings to effectively not owe tax. This isn't a loophole, but rather the basis of a fair taxation system of only taxing companies when they actually make money rather than simply exist. In this example if all losses have been exhausted by 2011 then profits may be taxable again.
That said there also are in many instances convoluted rules that allow companies to create structures to avoid taxes and maybe there can be some work done to make it harder for companies to avoid it, but arguements like the above are far too simpleton to have merit.