In our last meeting we discussed the need for tax reform, but there are many barriers. The law makers are beholden to moneyed interest for campaign contributions. Lobbiest can weaken laws by adding hidden loopholes. Tax attorneys can help the rich exploit many tax shelters. Congress can cut the budgets of tax enforcement agencies.
Even if we were to pass the laws, close the loopholes and fund tax enforcement, we need international cooperation because of the global nature to the economy. Certainly other developed countries have similar problems and should want to cooperate, but many poor nations are willing to let their national sovereignty by used to setup tax havens. No tax reform will be effective unless the problems of tax havens are addressed.
For our Zoom-In meeting on tax reform, we will take a closer look that offshore tax havens. Here are four videos which will be used as background material for our discussion. As always, anyone is welcome to lead the discussion on any of these videos or any other videos that they find.
The last video leads to a website which suggests ways to take action against tax havens.
From Vince:
ReplyDeleteI would like to thank you for all the work you’ve done to make zoom-in a success. Discussions are informative and exciting. If there’s anything I can do to assist, please do not hesitate in calling on me. I share the following observations in the hope of contributing to zoom-in’s success.
I would like to explain my comments during the last meeting of zoom-in. As I rethink what I might’ve sounded like during the meeting I would like further to explain. I am convinced it is difficult to zoom-in on any topic without understanding the theory or framework from which one is addressing the topic. I know that I must sound vague, very general and off-base with some of my comments on tax reform. My training as an academic is that the framework from which we investigate topics is as important as the details: in this case tax reform. So, I try to go back to broader frameworks to better locate the issue of tax reform--at least for me.
Let me explain, from my perspective, tax reform or taxes in general make little sense without some understanding or discussion of what the purpose of government should be, is, or should not be. A discussion of tax reform should be preceded or at least located in the issue of what’s the purpose of government. A very difficult question to answer with certainty given the variety of perspectives on what government should do, how big it should be or for that matter when governments get into the way. Yet the purpose of government(s) is fundamental to the question of taxation.
I personally would rather use the term revenues, rather than taxes, Of course after we decide or agree on what government should do, then revenues and taxes can be more rationally discussed. As I drive on the interstate highway, a federally initiated program, I do not pay taxes. I pay fees or assessments or tolls but certainly not taxes. There are also airport fees and other user charges across the purposes of government. In our group discussion of tax reform I’m not quite sure what the context that the reform takes place in. Taxes as you know, as well, as I do are political at core. All we have an understanding of the historical trends by which we can assess current tax rates. A few central questions at the beginning of the meeting might help us focus our discussion. Perhaps the future meetings the discussion later might offer some basic questions to guide the discussion. As we zoom-in in my opinion we do not want to get lost in the minutia of details.
I won’t go on to do belabor the point of how the context should be set-- no certain answer. Without paying attention to the context, or better yet, the theoretical framework, I’m not certain the group is just expressing and listening to various opinions, that are not wrong, but opinions don’t add up to a broader understanding of what constitutes tax reform. Obviously, this is my opinion.
If you feel I am speaking out of turn or incorrectly bringing superfluous comments to the table let me know. I certainly do not mean to be disruptive or hog the discussion. My educational training is based upon the view that when wrong or off-base I expect to be challenged, as I would challenge those who I feel are inaccurate in their comments.
I do remember quite clearly you said that you did not want zoom-in to be a classroom. I understand. Yet, I often out of habit, or ignorance, revert to classroom techniques. My perspective on zoom-in may not be correct or compatible with the success of the overall zoom-in concept. Let me know if I’m off-base in my comments and I will refrain from my current approach to discussion.
All discussions start in the middle and leave out background material. Because we all do not have the same background, it is important to slow down and back-track where necessary. The group can help by asking the speaker for clarification when the background is not understood.
DeleteI learned much today about tax reform, especially tax Havens. My gut feeling is that tax havens if a good point of attack for anyone or group interested in reform. Who would disagree, let alone oppose getting rid of tax havens?
ReplyDeleteI strongly agree that money for political campaigns and lobbing is at the root of tax reform as well as many other political issues in need of reform.
I recommend the following book on the subject of money and our political system:John Nichols, "Dollarocrary: How the Money and Media Election Complex is Destroying America, You can obtain the book from the Howard County Library through inter-library loan.
Vince