The High Cost Of Complying With Obama’s New Tax Code
Have no fear, America, Obama is stimulating economic growth by bloating our already bloated tax code up to the extent that some banks internationally may not even accept Americans as customers any more. In fact, Obama’s tax changes are so burdensome and complicated that foreign investors are actually thinking about pulling out of American markets.
The decision, which would make it hard for Americans in London to open bank accounts and trade shares, is being discussed by executives at Britain’s banks and brokers who say it could become too expensive to service American clients. The proposals, which were unveiled as part of the president’s first budget, are designed to clamp-down on American tax evaders abroad. However bank bosses say they are being asked to take on the task of collecting American taxes at a cost and legal liability that are inexpedient.
Andy Thompson of Association of Private Client Investment Managers and Stockbrokers (APCIMS) said: “The cost and administration of the US tax regime is causing UK investment firms to consider disinvesting in US shares on behalf of their clients. This is not right and emphasises that the administration of a tax regime on a global scale without any flexibility damages the very economy it is trying to protect.”
This illustrates the basic error in Obama’s approach to the economy. He claims to want to create more jobs and economic growth, yet what he’s doing is making it harder for the people who actually create jobs and create economic growth through investment and trade by raising taxes and further complicating our regulations/tax code. And he does this in the name of accumulating more power and more money at the federal level so that government can fix everything.
But the government can’t fix everything. The government doesn’t produce anything. The government can’t do anything without first taking something away from someone else. If we want more jobs and more prosperity we need to make it simpler to hire people. To buy things. To sell goods and services. That means less regulation, not more. Lower taxes, not higher taxes. Less inane government meddling. Not more.
