tax burden

Picciotto, Sol s.picciotto at
Tue Oct 13 12:34:20 PDT 1998

I'm glad Mike Cohen finally made the point that data about tax burden are based on declared income, and thus ignore the extent of both (illegal) evasion and (?legal) avoidance of tax. This is a major issue, which the left ducks all too often. Since deduction at source was introduced for employment income (I think only during WW2), the burden falls much more directly on waged and salaried people, while those who receive income from capital have far more opportunities for tax 'planning'. Largely due to this, high marginal tax rates became nominal, and many countries have been forced into reducing them while trying also to reduce tax breaks and opportunities for avoidance. As I understand it, the US tax code is riddled with breaks, even after the attempt at reform in 1986? Germany has been trying to introduce source taxation of bank interest for some years, and each time there is a massive outflow of bank deposits to Luxembourg.



**************************************************************************** Sol Picciotto Department of Law Lancaster University Lancaster LA1 4YN, UK phone: (44)(0)1524-592464 (direct line + voicemail) fax: (44)(0)1524-848137 s.picciotto at web page


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