Flat rate taxation?

It sounds like a good idea, though this protectionist model might hurt productivity, as local companies will have less incentive to turn out quality products at a lower price if their outside competition is naturally higher-priced. It might also hurt smaller states, that might not be able to compete with the prices of higher states that can have lower prices (even with tax added) due to scalability of costs.

I live in the US... and there is no competition for lowering price of things made here because with our laws and regulations we can not make things as cheaply as our competitors in China, Mexico and India. I understand the where you're coming from with the line of thought about competition driven pricing. But companies go to where production is cheapest. That often offsets taxes and the highest expense, labor.

Hurting the smaller state... ever heard of a fine Swiss watch? The Swiss are a very small country and one of the richest per capita. Take advantage of what you have and turn it to your benefit. There is no system that can even all competition, but every system can be taken advantage of to put you ahead of the completion.

Wescli Wardest wrote: Hurting the smaller state... ever heard of a fine Swiss watch? The Swiss are a very small country and one of the richest per capita. Take advantage of what you have and turn it to your benefit. There is no system that can even all competition, but every system can be taken advantage of to put you ahead of the completion.

For most of its history, Switzerland was a rather poor country, and only got the upper hand when all neighboring countries destroyed each other during both World Wars. But I digress... I do see your point.

Here in Ecuador, we have heavy taxing on imported goods. A car that might cost $15,000 in the US, costs maybe around $25,000 here. But we tried manufacturing our own cars and that didn't work out so well. Despite the low price, no one wanted the locally-made car, and the quality was dismal.

We're never good at everything. Usually something and we may have to find that. I commend anyone for trying. The next step is to learn from when we fail to succeed, and even from our successes, and improve.

Maybe tourism is a great source of revenue there, or could be; but car making, not so much. The trick is to offset where we are deficient with what we are good at while we catch up in other areas.

Maybe one place is really good at car making and another is good at fuel production. Then the two would benefit from trade with each other and to other places which would offset that one import tax. Manufactured goods that are produced somewhere else would always be a higher cost than if they were made locally. But the things you buy every day like food could come from local growers. And excess could be exported. When I can I try to buy from local growers just because it helps the local economy.

There is a GMC plant not 5 mile from my house but I am going to buy what better suits my needs then what they are producing. Not because of price but because some things, I feel, should be suited to the task and not necessarily based on price. That's also why I buy foreign measuring equipment and not US. I think the Japanese have much better micrometers than we do.

I'm just rambling. Pay no attention.

I don't understand enough about taxes to have too much of a say in this. What I can say is that I think that we should close the loopholes that allows American corporations and citizens from hiding money off shore to avoid paying taxes on it. It should be about where you are, not where your money is.

Goken wrote: I don't understand enough about taxes to have too much of a say in this. What I can say is that I think that we should close the loopholes that allows American corporations and citizens from hiding money off shore to avoid paying taxes on it. It should be about where you are, not where your money is.

Agreed. That would at least be a great start.

Wescli Wardest wrote:

Goken wrote: I don't understand enough about taxes to have too much of a say in this. What I can say is that I think that we should close the loopholes that allows American corporations and citizens from hiding money off shore to avoid paying taxes on it. It should be about where you are, not where your money is.

Agreed. That would at least be a great start.

Agreed. People (unlike corporations) have no way to "off-shore" their incomes, so it's unfair that rich people can through corporations.

It's a serious problem isn't it!!!
Wanna fight tax avoidance? Join the IRS :lol: :blink:

But I am serious, that is what they are supposed to be doing inside those bland looking government buildings. From what I've heard about my countries equivalent organisation, its not just all accountants but equally lawyers and ex-Police, because the work is so focused on investigation, forensics and litigation.

As they actually are a law enforcement agency AFAIK, led by a Commissioner, and so short of getting some dark Blackhawks and doing media covered paramilitary raids on corporate HQ's to liven their image up, they do seem to have a brand problem and that might impact attracting the best people needed.... for such a serious service to the nation.

On another point, individuals can use tax havens... I guess they just create a shell company there and shift their cashflow into it. I don't think its that hard, but does require some time, effort and cost to setup and maintain. I dunno if I'd be so trusting though not to mention if its illegal.