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from Nicholas Wapshott:

Can I invert myself and not pay taxes?

The Pfizer logo is seen at their world headquarters in New York

The hot tax-dodging business trend of the summer is inversion. A U.S. company buys a company in a country with a lower corporate tax rate, relocates its headquarters there and funnels its income through the new head office. As long as it does not repatriate profits, the self-exiled company can avoid paying U.S. corporate taxes.

The United States is the only country that taxes its citizens on their worldwide income.  Wherever you earn money, the Internal Revenue Service wants a slice of it. But if, as the 2012 Republican presidential nominee Mitt Romney said and U.S. Supreme Court justices ruled in Burwell v Hobby Lobby and Citizens United v Federal Elections Commission, corporations are people, shouldn’t the converse be true? Why can’t all Americans relocate their places of domicile abroad and dodge taxes just like a company?

If only it were that easy.

Let’s take it one step at a time. There has been considerable alarm at U.S. companies’ rush to the exits. Under a fiduciary duty to maximize dividends and share prices for stockholders, businesses are seeking to avoid the 35 percent federal corporate income tax they are liable for here. Many American business leaders believe high corporate tax rates put their companies at a competitive disadvantage with the rest of the world. As do many business-leaning, tax-hating and federal government-loathing politicians.

A general view of the Internal Revenue Service Building in WashingtonIf you add local and state taxes, U.S. corporations pay tax on their income at a nominal rate of 40 percent, far more than many other countries. Britain, for example, has a similar economy but its top corporate tax rate is just 21 percent. Germany, which also has a successful, mature economy, levies its companies at nearly 30 percent. While few U.S. companies end up paying this nominal rate, since they offset various expenses, exemptions are much the same in comparable economies. This disparity tends to beggar American businesses and discourage domestic investment, which means fewer U.S. jobs.

from Stories I’d like to see:

More questions for Snowden and the GOP establishment takes on the 2016 primaries

Accused government whistleblower Snowden is seen on a screen as he speaks via videoconference with members of the Committee on legal Affairs and Human Rights of the Parliamentary Assembly of the Council of Europe in Strasbourg

1. Snowden questions NBC missed:

In his interview with NBC’s Brian Williams last week, Edward Snowden tried to bolster his credentials this way: “I was trained as a spy in sort of the traditional sense of the word -- in that I lived and worked undercover, overseas, pretending to work in a job … and even being assigned a name that was not mine …. Now, the government might deny these things. They might frame it in certain ways, and say, ‘Oh, well, you know, he's a low-level analyst.’”

In that segment -- and as best I can tell from watching what I think were all the segments of Brian Williams’ interview -- three words never came up: Booz Allen Hamilton.

from Nicholas Wapshott:

Message for Clinton: Look before you leap

There seems to be a rush to get former Secretary of State Hillary Clinton to declare her run for the presidency.

Two magazine covers last week heralded the arrival of the fully fledged Clinton campaign-in-waiting, outing the nation’s worst-kept political secret: Clinton is considering a run for the presidency. Both tacitly urged her to jump in soon, before the excitement about the inevitability of her run becomes stale.

from The Great Debate:

But can the GOP revise the party?

The temptation for political parties to rewrite the rules after every defeat is irresistible. The Republican National Committee did not resist when it met in Boston last weekend. The committee passed a resolution aimed at limiting and controlling the 2016 primary debates.

It started way back with Hubert Humphrey, who won the Democratic Party's nomination in 1968 without running in a single primary. Outraged Democrats rewrote the rules, effectively turning nominations over to primary voters and caucus participants. Their motivation was simple: “No more Hubert Humphreys.”

from The Great Debate:

Can Christie tackle the partisan divide?

New Jersey Governor Chris Christie in Asbury Park in New Jersey, May 28, 2013. REUTERS/Jason Reed

How often these days do we see a political figure liked by both Republicans and Democrats? Not so often that we should fail to notice.

from The Great Debate:

Right-wing talk shows turned White House blue

Talk isn’t cheap, as Republicans have learned. The conservative talk show culture is proving expensive for GOP presidential hopefuls.

Since Rush Limbaugh’s 1992 bestseller “The Way Things Ought to Be,” his conservative talk show politics have dominated GOP presidential discourse – and the Republicans’ White House fortunes have plummeted. But when the mainstream media reigned supreme, between 1952 and 1988, Republicans won seven out of the 10 presidential elections.

from The Great Debate:

Obama’s Two Choices: Good and Better

President Barack Obama must like the view from 1600 Pennsylvania Avenue right now. Politically speaking, the sky is clear, and the few clouds on the horizon have silver linings.

Because where things now stand with Congress, if he wins – he wins. And if he loses – he wins.

from The Great Debate:

Dems shouldn’t mess with Texas

 

There has been much ado lately about the Democratic Party’s new project to turn Texas blue. What’s lost on the liberals in D.C., California and Manhattan who will throw money at this futile effort, however, is that the Texas Republican Party is different and far stronger than its counterparts in other states. And it’s not just because the Lone Star State under Republican control has become the envy of the nation in terms of job creation and economic growth.

One reason Democrats think the GOP’s hold over Texas is so precarious is demographics. Latinos make up 38 percent of the state population, a portion that is projected to rise to more than 50 percent by 2030. Since GOP nominee Mitt Romney got a dismal 27 percent of the Latino vote in November, it seems intuitive that a growing Latino population would spell trouble for Republicans. Yet Texas Republicans have done far better with Latinos than Republicans nationally because their approach to immigration has not been the antagonistic sort offered by Republicans in California, Arizona and other states.

from The Great Debate:

GOP v. Voting Rights Act

The Republican Party is in danger of reaping what it has sown.

Much has been written about the GOP’s problem with minority voters.  Quite simply, the party has managed to alienate every nonwhite constituency in the nation.

This is not an accidental or sudden phenomenon. Ever since Republicans chose almost 50 years ago to pursue a Southern strategy, to embrace and promote white voters’ opposition to civil rights, the party has been on a path toward self-segregation.

from The Great Debate:

GOP: Blame message not the messenger

Here's what's supposed to be happening:  After losing two presidential elections, Republicans are supposed to be re-evaluating what their party stands for.  Are they out of line with mainstream America?  Does the party need to change?

The answer is yes.  So the party moves to the center and searches for candidates with broader appeal.  Republicans don't need another spectacle like the 2012 primaries, where the contenders ran the gamut from a panderer to the right (Mitt Romney) to the far right (former House Speaker Newt Gingrich, Rick Santorum) to the extreme right (Representative Michele Bachmann, Texas Governor Rick Perry) to the lunatic fringe (Herman Cain, Representative Ron Paul).

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