Lion of the Blogosphere

Trump will raise taxes for hedge funds and international corporations

Article in the NY Times about Trump’s tax policies.

I agree with Trump on these issues. Hedge funders should be the same tax rate on ordinary income as people with regular jobs. In fact, I think that hedge funders should be a higher tax rate than everyone else because they don’t create value, they just siphon off value from other people.

And regarding international taxation, it’s a very complicated area of the tax code and regulations. Many students at NYU’s LLM program were afraid to take the International Taxation classes because they were supposed to be so difficult. There are lots of opportunities in there for companies to claim that their income is produced overseas in a country subject to a much lower tax rate. Apple is an example of a corporation that has been especially good at doing this.

The Republican Party, however, is aghast because their mantra has been lower taxes lower taxes lower taxes, and any loophole is just a fast one that they pulled on the Democrats. The so-called “Club for Growth” is trying to rally opposition to Trump.

Written by Lion of the Blogosphere

August 31, 2015 at 2:14 PM

Posted in Politics, Taxes

14 Responses

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  1. “It just seems that the economy does better under Democrats,” he told CNN’s Wolf Blitzer in 2004.

    The concept of a one-time tax on the super-wealthy is something he feels strongly about,” Stone told the Los Angeles Times.

    Trump said the tax should be used to pay off the national debt and help bolster the Social Security fund. He criticized presidential candidate Steve Forbes for favoring a flat tax, which Trump thought unfair to the poor. “Only the wealthy would reap a windfall,” Trump wrote in his 2000 book.

    On April 15, he told Fox News that he’d like to replace the income tax with “either a fair tax” (i.e., a national sales tax), “a flat tax or certainly a simplified code.”



    August 31, 2015 at 2:38 PM

  2. Absent a more radical solution like the Fair Tax, a good starting point for Trump to use when thinking about tax would be the Tax Reform Act of 1986. Among other things, it had the same tax rates for income and capital gains. Today, you’d probably need higher rates, but you could do something similar, maybe with two tax rates, at 25% and 35%.

    Dave Pinsen

    August 31, 2015 at 2:39 PM

  3. Increasingly difficult to connect with the GOP if you’re a small business owner or suchlike. And jobs are outsourced or directed to immigrants rather than voters. Bad strategy, guys. Not that voting Dem is any better unless you’re one of those curious masochists.


    August 31, 2015 at 3:33 PM

  4. Yes on both. Getting rid of the shyster moves on foreign income is low-hanging fruit. After that, start bringing back trade barriers.

    I really hate that branch of Republicans Inc. that can’t see beyond “tax cutz! tax cutz! tax cutz!” What idiots.


    August 31, 2015 at 3:40 PM

    • “tax cutz! tax cutz! tax cutz!” was a good strategy decades ago. The 1970’s saw middle income tax rates increasing because of inflation, so when the tax revolt started, the Republicans benefited. But now, taxes have been cut so much that none of the poor and a little of the working class pays taxes, so it’s gone away as a populist issue. However, like robots, the Republicans can only repeat the same tax cuts mantra. They don’t realize that issue is dead and has been for a while.

      Mike Street Station

      August 31, 2015 at 5:09 PM

      • This was what Romney was getting at in the 47% video. 47% of the population doesn’t pay the income tax, so why should they vote for you if cutting the income tax is the main part of your platform? He would have been a good President. Sigh.


        August 31, 2015 at 6:50 PM

  5. So is the argument for raising these taxes simply that it’s not equal to tax rates on ordinary income? In that case, why not equalize the tax rates in the other direction by lowering tax rates on ordinary income?


    August 31, 2015 at 6:06 PM

    • The government is already running a huge budget deficit.

      Lion of the Blogosphere

      August 31, 2015 at 6:16 PM

      • Is that the only justification for this proposed tax raise? If there were no budget deficit, would you not be calling for a tax raise here?


        September 1, 2015 at 2:26 AM

      • I would still want taxes raised on the richest and least value-creating taxpayers.

        Lion of the Blogosphere

        September 1, 2015 at 8:48 AM

      • What’s the justification for raising taxes on the richest if there’s no budgetary reason for doing so?


        September 1, 2015 at 1:26 PM

  6. In fact, I think that hedge funders should be a higher tax rate than everyone else because they don’t create value, they just siphon off value from other people.

    exactly right. at present the tax code is very partial to passive capital and punishes labor. but not all labor is created equal. ideally the hedge fund manager should be taxed at a higher rate than the private equity general partner. and the private equity general partner should be taxed at a higher rate than the engineer or surgeon. and the engineer or surgeon should be taxed at a higher rate than the machinist or construction worker, etc.

    but those working in hospitality, education, insurance and finance, etc. should be taxed at a higher rate than those who produce.

    productive labor = manufacturing (excluding the military), construction, “enterprise software”, transportation and warehousing, mining, agriculture, forestry, fishing, medicine. that’s it. everything else is derivative.

    needless to say such a tax policy would expose the post-scarcity/phony economy for what it is.

    kim jong un

    August 31, 2015 at 7:35 PM

  7. The winning tax policy for trump: tax all income (wages, cap gains, dividend and interest) at progressive rates topping out at about 35% (15% on first 50k, 20% next 100k, 25% next 250k, 30% next 500 k and 35% above that) and keep social security earrings limit and preserve benefits and fund deficit with tariff on foreign products.


    August 31, 2015 at 10:39 PM

  8. I agree that hedge fund managers should be taxed as ordinary income. The money they are making their income off of is not their own. Rather it is their investors’ money. Hence, the manager’s personal income should treated as ordinary income for the purposes of taxes, not capital gains.

    Abelard Lindsey

    September 1, 2015 at 12:45 PM

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