Double Taxation Quotes

Libertarians make no exceptions to the golden rule and provide no moral loophole, no double standard, for government. That is, libertarians believe that murder is murder and does not become sanctified by reasons of state if committed by the government. We believe that theft is theft and does not become legitimated because organized robbers call their theft "taxation." We believe that enslavement is enslavement even if the institution committing that act calls it "conscription." In short, the key to libertarian theory is that it makes no exceptions in its universal ethic for government.

For instance, the United States now has the highest corporate tax rate in the industrialized world: 39.1 percent (35 percent federal tax plus the average state tax). Even in Sweden, it’s only 22 percent. In France, it’s 34.4 percent—and their leaders are actual, card-carrying socialists! If that’s not enough to scare corporations away from building factories in America, consider all the other disincentives placed on them: the Obamacare mandates; the explosion of government regulations from the EPA, the FTC, and the whole alphabet soup of federal agencies; the fact that if they want to move money they made and had already paid taxes on in other nations back to America, where it could create jobs, we tax it again, eliminating their profits. The private research firm Audit Analytics calculated that between 2008 and 2013, American-owned corporations amassed over $2.1 trillion in profits overseas that were not brought back to the United States to be reinvested because they would be subject to double taxation. Imagine how big a “stimulus” it would be to job creation here at home to inject $2.1 trillion of nonborrowed money directly into private sector investment. Companies used to run to America; now they run from America.

objective, it said, was to push Gulf into transferring half of its U.S. oil and gas reserves into a royalty trust, which would be owned directly by the stockholders, giving them the cash flow and eliminating the double taxation on dividends.

If the company meets all of the qualifications for a REIT, it enjoys special tax status: it doesn’t have to pay any taxes at the company level, which means more cash and higher returns for shareholders. (This is in contrast to the double-taxation issues of corporate stocks, where the corporation has to pay taxes on its income before distributing dividends to shareholders, and then the shareholders have to pay taxes on the dividends they receive, resulting in the same money being taxed twice.)

Corporate Income Taxation Taxation of corporate net income imposes a “double” tax on the owners of corporations: once on the official “corporate” income and once on the remaining distributed net income of the owners themselves. The extra tax cannot be shifted forward onto the consumer. Since it is levied on net income itself, it can hardly be shifted backward. It has the effect of penalizing corporate income as opposed to income from other market forms (single ownership, partnerships, etc.), thereby penalizing efficient forms of enterprise and encouraging the inefficient. Resources shift from the former to the latter until the expected rate of net return is equalized throughout the economy—at a lower level than originally. Since interest return is forcibly lower than before, the tax penalizes savings and investment as well as an efficient market form.

In a very humbling process, the Swiss have had to admit to their faults and compromise on secrecy, changing the law and releasing the names of bank clients to please the US, as well as signing a dozen double taxation agreements in six months to please the OECD.

India is a country with comparatively higher inflation. If an investor invests in an asset, which gives a positive return but is not able to meet or beat inflation, there is no real return to the investor and if he has to also pay tax on the positive return, it would result in a double whammy – return not enough and pay tax on the not enough return.

Manmohan Singh’s lost opportunity The anti-corruption agitations of 2011 provided a wonderful opportunity for the prime minister and his government to start the process of purging the system of corruption and retrieving black money illegally stashed away in foreign banks. The government had two options to get our money back. The first, to behave like a responsible, honourable and strong nation and demonstrate political will to fight corruption using the ample machinery available through international and bilateral legal instruments, the Tax Information Exchange Treaties (TIEAs), Double Taxation Avoidance Agreements (DTAAs) and the Organisation for Economic Co-operation and Development (OECD) automatic exchange route. The Swiss have volunteered cooperation; and India can follow the example of the US and UK, and get India’s stolen money back to the country. Or, the government can take the other option and behave like a banana republic and a failed state, plunder capital from their own country through a UPA-sponsored version of imperialism, perpetuate poverty and backwardness by denying the people of this country their rightful development dividend while repeatedly rewarding and incentivizing the looters with amnesty schemes. Mr Singh’s government has continuously concealed information on black money by fooling the people of our country, shielding the corrupt and guilty who have illegal bank accounts in foreign banks, and by creating obstacles for any progress in the matter instead of taking proactive measures to obtain the information from the foreign governments concerned. Prime Minister Manmohan Singh could have chosen the former option and gone down in history as a great patriot and leader of our country, a pioneer against corruption. But sadly, he has lost the opportunity and chosen such, that history will remember him as having presided over the greatest frauds practised on this poor and gullible nation.

RAYNAL, ABBE. Philosophical and Political History of the British Settlements and Trade in North America. Translated from the French. (Dependence of Great Britain upon colonies and Discussion of taxation. Colonies held as "Shackled in their Industry and Commerce," etc.) 2 Vols. Edinburgh: 1776. Record of Indentures, Individuals Bound Out as Apprentices, Servants, etc., and of German and Other Redemptioners in the ofice of the Mayor of the City of Philadelphia. October 3, 1771 to October 5, 1773. Before Mayors John Gibson and William Fisher. MS. Presented to American Phil. Society by Thos. P. Roberts, 1835. Reproduced in publications of Pennsylvania Germany Society, Vol. XVI, Lancaster, Pa., 1907. 321 closely printed pages averaging about twenty-two names to each double page or above 3,500 names recorded; both recently arrived and transfers recorded. Full description of terms, considerations, previous place of residence, etc. RECORD BEFORE THE MAYOR. (1745.) James Hamilton, Register. MS. contributed by George W. Neifle, Chester, Pa. Pa. Mag. Hist. and Biog., Vols. 30, 31 and 32. REDEMPTIONERS, REGISTRY OF THE "Book A" Germans, etc. (1785-1804); "Book C" (1817-1831). MSS. Library Historical Society of Pennsylvania. RICHARDS, ML H. "German Emigration from New York Province into Pennsylvania," Pennsylvania-German Society Proceedings, Vol. VII Lancaster: 1899.

Double Taxation Avoidance Agreements (DTAA): Mr. Kaushik, a US citizen, living in UK having an income from investments in India should be taxed only once on his Indian income. If his income is taxed in all three jurisdictions, he may not be able to get anything after tax and would cause him undue hardship. Double taxation means taxing the same income more than once.

This can also apply for an investment decision. Always ask how many years it would take to double your investments. To

For example, if an investment is generating 6% after tax return, you would double your investments in 12 years (72/6). If you could increase your after tax return to 9%, your investment would double in 8 years (72/9). While this may not matter for 1-2 years, but in 48 years, Rs. 100,000 would double 4 times (16x) at 6% and 6 times (64x) at 9% and become Rs. 1,639,387 and Rs. 6,258,524, respectively. If you invest in a way that generates 12% or 15% annual return, your investment would be Rs. 23,039,078 or Rs. 81,940,071 in 48 years. Increasing the return from 6% to 15% could give you 50 times more money (1,639,387 81,940,071) in 48 years. This is the power of compounding and higher tax free return.