Jindal Tax Plan Creates A Wonderland Of Dodging
More to the point, though, Jindal’s plan opens up a veritable wonderland of tax dodging . There is no corporate income tax. So if you have a C corporation that is profitable, there will be no tax unless there are distributions (Under this regime I doubt anyone would want a flow-through entity except while it was unprofitable). The plan also calls for up to $30,000 per year in contributions to a tax-deferred account. So if you are really doing well and can afford a plane or a boat or a second home or an expensive art collection who is going to own it? Well say there is $100,000 of cash in your corporation. Do you take a distribution of $100,000 and buy a $75,000 painting with the net or just have the corporation buy the painting leaving $25,000 in the till?
IRS Scandal Narrative Still Inspires Passion
As something of an amateur historian, my biggest question about the IRS Scandal, which I sometimes refer to as Teapartygate, is how prominent it will be in our historical memory in a few decades. There are certain controversies about particular incidents that become vehicles for ideological freight and achieve a long life at least among the culturally literate. Think of the Dreyfus affair (l’affaire Dreyfus) or the trial of Sacco and Vanzetti . The IRS Scandal certainly has an ideological dimension as it can be portrayed as Washington insiders using the most feared federal agency to intimidate people advocating a return to constitutional values.
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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.