Index

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Abbott, Tony, 190

AbbVie, 157

accelerated depreciation, 55, 62

Affordable Care Act, 209, 218, 246

Afghanistan, 79, 167

Africa, 152, 201, 228

airline industry, 189–90

Alaska Permanent Fund, 192–93

alcohol tax, 37–38, 40, 105

Alliance Boots, 157–58

allowances, 2, 52–53, 60–61, 70, 72, 74, 165–66, 209. See also depletion/depreciation allowances; tax breaks

alternative minimum tax, 210, 255

Amawhe, Achilles, 35, 47

American Jobs Creation Act, 168–69

Americans for Tax Reform, 245

America We Deserve, The (Trump), 98

ancient Rome, 30, 34

Andorra, 194–95

Apple Inc., 145, 148–51, 153–54, 161, 164, 170, 229

appraisers/appraisals, 83–84, 124, 129–30

Argentina, 145, 239

art, 83–84, 124, 133

Asia, 59, 201

audits, 40, 55, 143–44, 161, 163, 211, 223, 255

Austen, Jane, 121

austerity measures, 34, 42, 52, 112, 127, 129

Austin, Texas, 26

Australia

and carbon tax, 8, 189–91

tax deductions in, 36, 41, 89–90

tax rates of, 19, 21, 146, 175

tax revenues of, 15, 17

VAT in, 228, 239, 243, 255

Austria, 14, 17, 19–20, 44, 78, 86, 132, 146

automobile industry, 21, 39–40, 71–74, 156, 164. See also cars

Bahamas, 193, 207

bailouts, 116, 122, 156, 182–83

Baker, James, 66–67

Bakija, Jon, 43, 238

Balzac, Honoré de, 121

banks, 89, 181

bailouts of, 122, 182–83

in eastern Europe, 95, 103

and filing returns, 220–21, 223, 255

and governments, 33–34, 129

secret accounts of, 198, 200–207

and tax avoidance, 147, 160, 167, 200–207

See also savings

Bartlett, Bruce, 245–46

Belgium, 14, 16–18, 38, 50, 87, 133, 136, 146, 164, 183, 239

Bermuda, 151–52, 156, 166, 193–94, 202

Bharara, Preet, 206

Bird, Richard M., 44, 139, 229, 244, 247

Blankfein, Lloyd, 117

Bloomberg, Michael, 176–78

Bloomberg Businessweek, 153

Boháček, Radim, 94, 108–9

Boulder, Colorado, 180, 188

Bradley, Bill, 66–68, 251

Brazil, 39, 181

British Virgin Islands, 200, 203

broad base, low rates (BBLR)

advocates for, 56, 91, 218–19

explanation of, 52–57

in New Zealand, 57–63, 79, 86, 136

as successful formula, 48, 251–52

and tax breaks, 81, 86, 91, 109

and tax reform, 125, 225

in U.S., 66–70, 73, 165–66, 236, 251–52, 255

brokerages, 65, 183, 205, 221, 223

Buffett, Warren, 136–38, 253–54

Bulgaria, 106, 110

Bush, George H. W., 101, 245–46

Bush, George W., 42–43, 56, 88, 101, 108, 131–32, 241–43

Bush, Jeb, 43, 138

business flat tax (BFT), 246–48

Cain, Herman, 96, 108

California, 20, 60, 149, 170, 179–80, 222, 224

Cameron, David, 200

Canada, 9, 21, 36–38, 57, 122, 132

and charitable donations, 24, 86

corporate taxes of, 146, 155

GST in, 228, 235–37, 239, 243–44, 255

tax deductions in, 86, 89–90

tax reform in, 69–70, 243–44

tax revenues of, 15, 17

and U.S. corporations, 154–55

cap-and-trade system, 188–90

capital gains tax, 88, 133, 256

explanation of, 17–19, 69, 233

increasing rate of, 137, 170

in Middle East, 192–93

reduced rate for, 70, 124, 136–39, 160, 241

and the rich, 70, 99, 124–25, 132, 136–39

and tax reform, 68–70, 254

Capital in the Twenty-First Century (Piketty), 115, 121–25, 128, 136, 139, 171–73

capital investment, 23, 56, 102, 114, 123, 136–39, 168

capitalists/capitalism, 29, 94, 101–3, 114, 170

carbon tax, 8, 133, 185–91

carried-interest preference, 137–39

cars, 107–8, 128

electric, 36, 71–73, 80, 251

fuel efficiency of, 21, 39–40

tax breaks for, 71–74, 80, 81, 122, 222, 251

See also gas tax

Carson, Ben, 8, 95

Caterpillar Inc., 141–45, 148, 153–54, 162–63

Cayman Islands, 117, 139, 193, 195, 202, 204, 207

CEOs, 98–99, 117, 122, 128, 150, 154

charitable contributions, 36, 203

of Americans, 13, 24, 53, 138

deductions for, 1, 8–9, 40–41, 53, 55, 61, 69, 79, 81–87, 221, 252

problems with, 82–87, 90

Chicago Tribune, 158

children, 36, 53, 55, 70, 78, 80, 176, 250, 256

Chile, 14, 16, 25, 51, 120, 146, 179, 239

China, 22, 32, 149, 171, 198, 200, 239

Choosing a Broad Base–Low Rate Approach to Taxation (OECD), 57

Christensen, John, 204

Chronicle of Philanthropy, 82

churches, 24, 53, 61, 82–84, 93

cigarette tax, 10, 21, 37–38, 40, 176

citizenship, 28–30, 36–37, 46–48, 194–95

Clausing, Kimberly, 165, 169

climate change, 185, 188–89

Clinton, Bill, 101, 188, 211

Clinton, Hillary, 138, 254

Clyde, Lord, 159

Collet, Martin, 125–26, 128

Commerce Clearing House, 212–13

commodities, 18–21, 37–39, 123, 237, 239–40

Common Market, 228

community programs/services, 27–33

commuting to work, 10, 36, 40, 80

Compañía General de Tabacos de Filipinas v. Collector of Internal Revenue, 30–32

competition, economic, 106, 108–10, 112, 127, 145, 164, 234, 256

conservatives, 43, 119, 133, 170

on flat tax, 100, 104, 108

on progressive taxes, 44–45, 62, 112

on tax reform, 64–67

on VAT, 235–36, 243–46, 248

See also Republicans

Constitution of Liberty, The (Hayek), 45

consumer spending, 41–42, 57, 114, 174, 233–39, 243

consumption tax, 35–39, 170, 233–34, 238–48, 255. See also value-added tax (VAT)

Cook, Tim, 150–51, 154

corporate income tax, 75, 128, 154, 156, 173, 191–92, 233

avoidance of, 22–23, 31, 54, 139, 142–70, 252

elimination of, 150–51, 169–70, 246

and flat-rate tax, 96–97, 108

in flat-tax nations, 110

higher in U.S., 13, 21–22, 145, 148, 164–65, 234, 252

lowering of, 11, 21–22, 64, 69, 145, 148, 165–66, 234, 245, 251–54

in other nations, 21–25, 36, 110, 142, 145, 149, 166–67, 175, 252

reform of, 164–70, 252–53

corporations, 11, 63, 74, 122, 214, 256

back taxes paid by, 163–64

bailouts of, 123, 156

in eastern Europe, 95, 106

overseas profits of, 22–23, 81, 141, 143–58, 161–62, 165–70

and repatriated profits, 167–69

tax breaks for, 56, 59, 68–69, 72, 74, 148, 155–56, 165–70, 252–53

corruption, 46–47, 100, 198, 200

Crassus, Marcus Licinius, 29–30

credits, 2, 5, 41, 55, 71–72, 218

addition of, 64, 70, 209

in corporate tax code, 22, 36, 148, 165–66

elimination of, 56–57, 62, 69, 81, 91, 165–66, 251–52

for low-income people, 237–38

in other nations, 78, 89–90

for political contributions, 36–37

and taxable income, 52–53, 59–60

and tax expenditures, 74–77

Credit Suisse, 207

Cruz, Ted, 8, 95, 246–47

CSARL, 143–45

currency, 29, 32–33, 51, 58, 103, 110, 181, 197–208

custom duties, 34–35, 50

Cyprus, 129, 202, 204, 207

Czech Republic, 15, 18–19, 93–94, 106, 108–11, 113, 132

“death tax,” 131–32, 254. See also estate tax

debts/deficits, 33–34, 41, 51, 64, 71–72, 81, 96, 185–86, 193, 238, 243, 256

deductions, 17, 40–41, 55, 103, 155, 159, 246

and corporate taxes, 22, 165–66

elimination of, 56, 60–62, 67–70, 81–82, 97, 100, 109–10, 165–66, 219, 222, 252

explanation of, 72–78

itemized, 87–88

and the rich, 82–83, 86, 88–90

standard, 83, 89

and taxable income, 52–53

and U.S. Congress, 5, 10

See also charitable contributions; mortgage interest

deductions; tax breaks

Delaware, 19, 160, 204

Democrats, 43, 60, 64–68, 117, 132, 148, 162, 188, 190, 245

Denmark, 38, 102, 105, 120

government spending in, 23, 126

high tax rates of, 17, 19

property taxes in, 175

simple tax returns of, 221

tax revenues of, 14, 16, 79, 126

VAT rates of, 239

Depardieu, Gérard, 133–34, 139, 151

depletion/depreciation allowances, 64–66, 69–70

derivatives, 181, 184

dividends, 6, 9, 23, 36, 55, 70, 111, 147, 168, 170, 173, 193, 233, 241, 254, 256

“Double Irish with a Dutch Sandwich,” 151–53, 161, 164

Douglas, Roger, 60–61

dynamic scoring theory, 101

earned income tax credit (EITC), 210, 217–18, 238, 250

East Asia, 21, 23, 228

eastern Europe, 93–95, 101–14

economic growth, 16, 36, 41–43, 50, 52, 55, 91, 101, 104–8, 114, 120, 124, 136, 238

economic impact of taxes, 16, 95, 100–101

Economic Recovery Tax Act of 1981 (ERTA), 64

Economist magazine, 58, 104, 126

education, 36, 44, 53, 63, 70, 79, 84, 105, 117–18, 123, 126–27, 168, 175, 180, 221

Egypt, 200, 239

Eisenhower, Dwight, 2

electronic trading, 181–84

emissions. See carbon tax

Energy Improvement and Extension Act of 2008, 71–73

environment, 51, 168, 189, 191. See also carbon tax

Environmental Protection Agency, 39–40

equality, economic, 120, 124

estate tax, 6, 45, 129–32, 192, 246, 254

Estonia, 15, 94, 102–11, 113–14, 220

e-tax system, 105

European Union, 110, 112

Emissions Trading System (ETS) of, 189

and FTT tax, 180, 183–84

members of, 95, 103, 108, 125

tax dodgers pursued by, 163–64

and VAT, 228, 239–40

exemptions, 1–2, 5, 17, 80, 84–85, 103, 130–31, 220

addition of, 64, 70, 209

in corporate tax code, 22, 148, 165–66

elimination of, 55–57, 97, 100, 109–10, 165–66, 219, 251–52

explanation of, 76–78

and loss of revenue, 41, 78

in paying income tax, 233–34

and taxable income, 52–53, 59–60

and tax expenditures, 74–77

See also tax breaks

expatriation tax, 194

exports, 34, 59–60, 106, 189, 234

Fair Tax Act, 67–68

Farr, Malcolm, 189

fast-food chains, 154–55

fat tax, 38–40, 177–80

FAT tax (financial activities tax), 180–85, 254–55

Federal Deposit Insurance Corporation (FDIC), 34, 182

Fico, Robert, 112

Field, Stephen J., 46

filing returns, 1–2, 214

complexity of, 5–7, 40, 97–98, 211–15, 219, 224

by governments, 219–22, 224, 255

high expense of, 5–6, 212–15, 219, 223–24, 252, 256

online, 105, 220, 255

by precision withholding, 220–21

by pre-filled forms, 221–25

and seven income brackets, 97

simplifying of, 105, 219–25, 252, 255

software for, 6, 213, 215, 224

as time-consuming, 5–6, 212–13, 215, 220, 223–24, 256

financial activities tax (FAT), 180–85, 254–55

financial industry, 137–38, 180–85

financial system, 199, 207

financial transactions tax (FTT), 180–85, 254–55

Finland, 14, 19, 86, 105, 131, 239

Fiorina, Carly, 95, 214

flat-rate income tax, 44

advocates for, 8, 91, 95–100, 104, 106, 111, 253–54

in eastern Europe, 18, 95, 103–14

explanation of, 91, 95–114

problems with, 95–100, 104, 110–11

of Ted Cruz, 246–48

Flat Tax Revolution (Forbes), 99–100, 108

food taxes, 10, 38–40, 52, 55, 178, 200, 237, 239–40. See also sugar tax

Forbes, Steve, 8, 99–101, 108

Forbes magazine, 99, 224

Foreign Account Tax Compliance Act (FATCA), 205–7

Forsberg, Viktor, 104–5, 113–14

Fortune magazine, 162

France, 7, 31, 34, 38, 49, 54, 60, 115, 121, 198–99, 245

and charitable donations, 24, 86

corporate taxes of, 21–22, 145–46, 164

estate taxes in, 131, 133

and FTT tax, 181, 183

and ISF tax, 128–30

tax avoidance in, 133–34, 139, 142, 151, 207, 227–28

taxes on les riches, 17, 125–29, 133–34, 139, 145, 173

tax revenues of, 14, 79, 128, 134

VAT rates of, 184, 194, 239–40

Francis, Pope, 118–19

Franklin, Benjamin, 30, 191

fraud, 51, 206, 213, 218

Free to Choose (Friedman), 103

Friedman, Milton, 103, 109, 175

Friedman, Thomas, 187

gas tax, 10, 13, 17, 19–21, 39–40, 187, 234

General Electric, 169

General Motors, 74, 156

George, Henry, 171–76

Georgia, 110

Germany, 17, 71, 102, 106, 113, 164, 147, 181

BBLR in, 57

corporate taxes of, 22, 146

estate taxes of, 131

and FTT tax, 183

gas tax in, 20–21

Nazi era in, 119, 138

and tax avoidance, 207

tax breaks in, 36, 89–90

tax revenues of, 15, 79

VAT rates of, 239–40

gift tax, 82–86, 130, 246, 254

Gillard, Julia, 190

Gini coefficient, 120, 127

global associations for specific industries, 49–50

global recessions, 112, 116, 182–83, 190, 199

global tax issues, 124–25, 148, 165, 182–83

Global Tax Optimization Program (GTOP), 142–43

global warming, 185, 188–89

Gonzalez, Rick, 157

goods and services tax (GST), 11, 19, 61, 228–29, 235–39, 242–48. See also value-added tax (VAT)

Google, 151–54, 161

government

borrowing, 33–34, 42, 50

confidence in, 46–48

programs, 100, 112–14, 156–58, 186, 256

services, 33, 63, 72, 96, 126, 150, 174, 218, 235, 244

spending, 23–24, 28–32, 48, 74–79, 81, 106, 126–27, 236, 245, 247

Government Accountability Office (GAO), 147–48, 165, 252

Great Britain. See United Kingdom/Great Britain

Great Depression, 121

Great Recession of 2008–2009, 172, 190

and austerity measures, 34, 52, 112, 127, 129

bailouts after, 182–83

and economic collapse, 41–42, 51–52, 235

and taxes, 41–42, 110, 175

and wealth, 116, 199, 253

Greece, 15, 33–34, 47, 51, 146, 245

Greenspan, Alan, 246

Gregory, Evelyn, 160–61. See also Helvering v. Gregory

gross domestic product (GDP), 14, 23–24, 33, 104, 108, 117, 126, 186

gross receipts tax, 228, 247

Group of Twenty, 182

Guth, Petr, 109

Hall, Robert, 96–97

Hand, Learned, 159–61

Hanseatic League, 102

Hatch, Orrin, 77–78

Hayek, F. A., 44–45

health care, 17, 37–38, 44, 51, 63, 69, 114, 118, 157, 176–80, 186, 221

health insurance, 29, 36, 52–53, 63, 81, 126, 133, 209, 218, 246–47, 251

hedge funds, 137–38, 183

Helvering v. Gregory, 159–61

Hines, James R., 56–57

Hollande, François, 127, 133–34, 142, 151

Holmes, Oliver Wendell, Jr., 30, 32, 36

home ownership, 8–9, 36, 40, 52, 75–81, 87–91, 116, 122. See also mortgage interest deduction; property: taxes

Hoover Institution, 96–97

Hungary, 15, 18–19, 41, 111, 239

Iceland, 15, 129, 200

Illinois, 141–44, 157, 163

immigrants, 155, 192, 194–95, 229

imports, 34, 50, 65, 187, 189, 193

income

definition of, 17–18, 52, 222, 255

distribution of, 44–46, 57

foreign-earned, 22–23, 81, 143–58, 161–64

inequality of, 43–46, 115–25, 135, 139

“ordinary,” 137, 160

seven brackets of, 97

“stateless,” 150, 154

income tax

earned income tax credit, 217

elimination of, 225

history of, 1–3, 12, 34–35, 45–46, 121, 135, 145, 173, 250

nonpayers of, 233–34

rebates of, 41–42

See also specific types

Income Tax, The: A Study of the History, Theory, and Practice of Income Taxation at Home and Abroad (Seligman), 45

India, 34, 129

inequality, economic, 8, 43–46, 98, 107, 115–25, 127, 135, 139, 172–75, 242, 253–56

inflation, 32–33

inheritance tax, 17, 30, 99, 121, 129–33, 254

insurance, 31–32, 60–61, 181–82. See also health insurance

intellectual property, 151–53

interest charges, 9, 33–34, 53, 61, 151, 155, 166, 173, 202, 241

interest groups, 41, 56–57, 62, 66, 68, 225

Internal Revenue Code. See tax code

Internal Revenue Service (IRS), 30, 35, 72, 75

art appraisal office of, 83–84

commissioners of, 161, 210, 213, 249

complexity and, 39, 55, 83, 97–98, 130, 194, 209, 213, 215–16, 249

dislike of, 24, 26, 212

expenses/revenues of, 214–15, 241, 256

and filing returns, 222–24, 255

taxpayer advocate of, 211–16, 220

underfunded, 161, 163

See also audits; specific tax types

International Consortium of Investigative Journalists, 198–99

International Fiscal Association, 229

International Monetary Fund (IMF), 50–52, 57, 103, 112, 158, 175, 182, 185–86, 237–38

international organizations, 49–52, 56–57, 203

International Tax Handbook, 191–92

Internet, 49–50, 86, 105, 121, 200, 234, 255

Intuit, 224

investment, 36, 50, 55, 57, 167, 254–56

accounts, 9, 129

bankers, 119, 137

in eastern Europe, 105–10

encouraging of, 41, 241

houses, 182–83

income, 111, 124, 136–39, 192–93, 223

taxes on, 136–39, 173, 233

See also capital investment

IRA deposits, 9, 69

Ireland, 19, 33, 86, 175

corporate taxes of, 22, 145–46, 149–50, 152, 166

tax reform in, 69–70

tax revenues of, 14–15

and U.S. corporations, 147, 149–53, 156–57, 162, 164

VAT rates of, 41, 239–40

IRS Offshore Voluntary Disclosure Program, 201

IRS Restructuring and Reform Act of 1998, 211–12

Israel, 15, 20, 89–90, 146

Italy, 14, 17, 29–30, 33, 147

and FTT tax, 181, 183

and tax breaks, 78, 86

tax bureau in, 24–25

VAT rates of, 41–42, 240

Japan, 30, 33, 71, 131, 147, 187, 228

corporate taxes of, 22, 146

deductions in, 86, 89–90

gas tax in, 20–21

simple returns of, 7, 220–21, 223

tax bureau in, 25, 220

tax revenues of, 15, 17

and VAT, 238, 240

Jersey, isle of, 157

Jesus Christ, 28, 44, 134–35

job creation, 41–44, 91, 123, 125, 136, 162, 168–69

Johnson, Paul, 91

Johnson Controls, 156

Joint International Tax Shelter Information and Collaboration Network (JITSIC), 204–5, 207

Journal of Public Policy, 58

Kažimír, Peter, 112–13

Kennedy, John F., 75, 120

Keynes, John Maynard, 50, 54

Kiwis, 58–60, 62, 65

Kleinbard, Edward D., 148

Koskinen, John, 161, 210, 213

Kotlikoff, Laurence J., 169–70

Laar, Mart, 102–4

labor, taxes on, 17, 58, 123, 136–37, 173

labor/labour parties, 43, 60, 91, 189–90

land, taxes on, 46, 52, 83, 173–76

La taxe sur la valeur ajoutée (Lauré), 228

Latvia, 15, 106, 109

Lauré, Maurice, 227–29, 232

lawyers, 13, 62, 109, 169, 205–6, 211. See also Mossack Fonseca; tax avoidance

left, the, 43, 80, 107, 109, 112–13, 126–27, 137–38, 170, 175, 247, 253

Levin, Carl, 148, 162–63

Lew, Jacob, 161–62

Lewis, Al, 158

liberals, 2, 12, 43, 58, 64–65, 68, 78, 127, 188, 190, 236, 244, 248

life insurance, 61, 78, 80

Lithuania, 106, 109

loans, 29, 51, 69, 70, 155, 166, 181, 221

lobbyists, 41, 57, 67, 70, 89, 168, 177–78, 180, 183, 224–25, 240, 245, 252

Long, Russell, 74

Luntz, Frank, 131–32

Luxembourg, 15, 164, 183, 203–4

luxury goods, 239

Macau, 194–95

McCain, John, 44, 150–51

McTigue, Maurice, 62, 251

Malaysia, 136, 200, 240

Mankiw, N. Gregory, 170

manufacturers’ sales tax (MST), 243–44

manufacturing companies, 11, 107–8, 141–45, 153, 156, 187

Maori tribe, 58–59

Marlborough wine region, 60

Martin, Lucy, 47

Massachusetts, 35, 45, 64, 223

media, 44, 74, 120, 127, 197–200, 204, 207–8

Medicaid, 63, 79, 157, 174, 234

Medicare, 17, 79, 157–58, 246

medicine, 52, 55, 156–58, 165, 237, 239

Mexico, 19–20, 24, 51, 120, 240

corporate tax of, 22, 146

fat/sugar tax in, 38–39, 177–79

and safe water, 39, 177–79

tax revenues of, 14, 16

Microsoft, 151, 153–54

Middle East, 34, 152, 155, 167, 187, 191–95

Mikloš, Ivan, 106–8

Monaco, 194–95

Monitor Securities Corporation, 160

mortgage interest deduction, 8–9, 53, 61, 69, 75–76, 78, 80, 88–91, 100, 252

eliminated in Britain, 90–91

Mossack Fonseca, 197–203, 205, 207–8

Mulroney, Brian, 243–44

Murdoch, Rupert, 190, 199

NASA, 168, 174

National Bureau of Economic Research, 168

National Commission on Fiscal Responsibility and Reform, 56

national parks, 34, 103, 168

National Taxpayer Advocate, 211–16, 220

nation-state concept, 34

Native Americans, 58, 80

Netherlands, 20, 87, 131, 146

deductions in, 86, 89–90

and Google, 152–53

simple returns of, 7, 219–21

and tax avoidance, 164, 167

tax reform in, 69–70

tax revenues of, 15, 17

and VAT, 10, 235, 240

Nevada, 204

New York Times, 115, 155, 162, 187, 198, 224

New Zealand, 18, 65, 166

BBLR in, 57–63, 86, 136

deductions in, 89–90

GST in, 11, 19, 61, 228, 238, 240, 243

tax reform in, 57–63, 65, 69, 107, 251

tax revenues of, 15, 79

Nigeria, 24–25, 35, 47

Nikoloudis, Panagiotis, 47

Norway, 15, 17–18, 20, 79, 87, 120, 129, 132, 146, 240

Obama, Barack, 39, 56, 132, 188, 205, 229

on corporate taxes, 158, 166

on economic inequality, 43–44, 117–20, 253

tax reform of, 88, 125, 137–38, 241

Obermayer, Bastian, 197–98, 207–8

obesity, 38–40, 176–78, 180

Occupy Wall Street, 116–17, 119, 127

Ódor, Ludovit, 107–8, 111

oil, 22, 32, 34, 36, 39, 64, 73, 186–87, 191–93

Olson, Nina, 211–16, 218–19, 221

online purchases, 234

Oregon, 19, 245

Organization for Economic Cooperation and Development (OECD), 20, 77, 89, 128, 228

on BBLR system, 57, 70

BEPS plan of, 163

member countries of, 59, 120, 145

role of, 50–52

on tax revenues, 14–18

overall tax burden, 13–18, 46, 126, 148, 165, 175

Packwood, Robert, 68

Panama Papers, 195, 197–208

Paris, France, 7, 31, 115, 126, 133, 181, 204

Paul, Rand, 8, 95

payroll taxes, 41–42, 110–11, 173, 192, 233, 242, 246

Peichl, Andreas, 113

penalties, 39–40, 163, 206–7, 211, 243

Pennsylvania, 180, 182

pensions, 17, 63, 108, 126

Perkins, Tom, 119

Perry, Rick, 8, 95

Pfizer, 156–57, 162

pharmaceutical companies, 34, 156–58

Philippine Cigar Case, 30–32

Piketty, Thomas, 115–16, 121–25, 127–28, 136, 139, 171–73, 183

Poland, 15, 102, 109, 119, 138, 240

political contributions, 36, 70, 74, 123, 138

politics, 36, 48, 62, 102, 116, 131–32

Georgism movement, 171–75

polarization of, 12, 63–64, 69, 241–42

of tax breaks, 72, 86, 90

of tax rates, 91, 111–12

of tax reform, 66–68, 91, 224–25

and VAT, 229–30, 236, 241–48

Portugal, 15, 17, 33, 221

President’s Advisory Panel on Federal Tax Reform, 56, 241–43

PricewaterhouseCoopers (PwC), 142–44, 148, 162–63, 252

private sector, 29–30, 42, 122

Progress and Poverty (George), 171–76

progressive income tax, 10, 28–29, 241

advocates for, 44–46, 54, 62, 114, 125, 135

and inequality, 135, 253–54

in other nations, 97, 104–8, 110, 112

in U.S., 97–98, 100–101, 135–36

property

rights, 103–4

taxes, 35, 52–54, 79, 88, 124, 128, 173–76, 191, 193

public programs/services, 27–33, 35, 44, 125–26, 218, 247

Puerto Rico, 153

Putin, Vladimir, 134, 200

Rabushka, Alvin, 96–97

Reagan, Ronald, 12, 64–65, 67–69, 137, 245, 254

real estate, 18, 61, 69, 89–90, 101, 105, 123, 128, 133, 136, 195

recessions, 43, 101, 112, 233. See also Great Recession of 2008–2009

Regan, Donald, 65–67, 250

religious organizations, 84. See also churches

Republicans, 8, 12, 42–44, 64–68, 77, 91, 95–96, 99, 117, 138, 150, 188, 190, 210, 214, 245–47, 253–54

retail sales tax. See sales tax; value-added tax (VAT)

retirement, 9, 24, 36, 52–53, 81, 246

rich, the, 1, 113, 184

high taxes on, 16–18, 27–29, 34, 97, 120, 123–29, 173–75, 180, 253

lower taxes on, 134–39, 253–54

and tax increases, 43–46, 112

and tax rate cuts, 62, 69, 91, 117

tax-reform plan for, 95–96

top 1%, 18, 44, 67, 116–17, 119, 121, 198

See also superrich, the; tax avoidance: by the rich; tax breaks: for the rich; wealth; specific taxes

Ridley, Matt, 119

“rifle shot” tax provision, 74

right, the, 43, 107, 126–27, 137–38, 175, 247, 253

Robin Hood tax, 180, 183–84

Rogers, Will, 28

Romania, 106, 110

Romney, Mitt, 46, 95, 117, 138–39, 234

Roosevelt, Franklin Delano, 159, 171

Roosevelt, Teddy, 135

Russia, 32, 101–2, 106, 109, 111, 129, 134, 200, 240

sales tax, 11, 69, 230–36

and BBLR, 52, 55–56, 58

in eastern Europe, 108, 114

on financial transactions, 180–85

local, 19, 69, 230, 234, 242–44, 255

in other nations, 10, 18–19, 61, 128, 133, 235, 239

state, 19, 183, 242–43

in U.S., 10, 17, 19, 37, 96, 173, 193, 247

world’s highest, 18, 41, 111

See also value-added tax (VAT)

Sanders, Bernie, 132, 138, 158, 172, 180, 184–85, 253

Sarkozy, Nicolas, 127, 133

savings, 9, 33, 36, 116, 128–29, 173–74, 181–82, 233, 241, 255

Scandinavia, 105

schools, 24–25, 29, 63, 117, 175, 237, 239

Schuchat, Frank, 139

Schwarzman, Stephen, 119, 138

Scott, Graham, 11, 60–63, 65

securities, 23, 84, 123, 160, 181–85, 255

Securities and Exchange Commission, 163, 181

seigniorage gain, 33

self-employed, the, 63, 223

Seligman, Edwin R. A., 45, 135

Serbia, 106, 110

single-rate tax. See flat-rate income tax

Single Tax (Georgist), 173–76

sin tax, 37–39

Skadden, Arps firm, 154

Slemrod, Joel, 43, 238

Slovakia, 10, 15, 23, 106–13

Slovenia, 15, 94

slumps, economic, 37, 41–42, 51, 101, 103, 107, 113, 172, 233, 235, 238

Smith, Adam, 37–38, 44–45

Social Security, 103, 126

in flat-rate tax countries, 110–11, 114

in other nations, 133, 192, 221

in U.S., 17, 41–42, 63, 75, 79, 165, 173–74, 186, 234, 246

soda pop tax, 10, 38–39, 176–80, 185

South Africa, 240

South Korea, 14–15, 17, 19, 21, 24, 36, 77, 146, 181

Soviet Union, 94–95, 101–6, 109–11, 220. See also Russia

Spain, 19, 24, 31, 131, 147, 183

simple returns of, 221

tax revenues of, 15, 78

VAT rates of, 25, 41, 194, 240

wealth tax of, 129

Starbucks, 164, 166–67

state taxes, 13, 17, 19–20, 35, 52–56, 63, 69, 88, 131, 147, 156, 193, 222, 255

Steinmo, Sven, 36

Stiglitz, Joseph, 125

stimulus measures, 42, 52

stockholders, 23, 122, 150, 156–57, 168–70

stock market, 101, 111, 118, 136–37, 141, 180–85, 254

stocks/bonds, 18, 69, 88, 123, 128, 147, 151, 160, 195, 203

subsidies, 60, 72, 76, 79, 103

Süddeutsche Zeitung, 197–98. See also Obermayer, Bastian

sugar tax, 37–40, 176–80

Sullivan, Martin, 169

Summers, Lawrence, 188, 211, 248

Sun Yat-sen, 171

superrich, the, 117, 122, 134–39

Surrey, Stanley, 72, 75–77, 79–80, 82, 86

Sutton, Willie, 128

Sweden, 18–19, 22–24, 86–87, 102, 105, 126

corporate taxes of, 146

economic equality in, 120–21

and inheritance tax, 132

simple returns of, 221

stock trades taxed by, 181–82

tax revenues of, 14–17

VAT rates of, 240

Sweers, Michiel, 235

Switzerland, 49, 86, 117, 129, 181

corporate taxes of, 54, 143, 145–46, 164, 166

and tax avoidance, 164, 167, 202–7

tax revenues of, 14–15

and U.S., 54, 143–45, 147, 156–58, 162–63, 166–67

Taft, William Howard, 31–32

tax agencies/bureaus, 39, 105, 182, 232

despised in U.S., 24, 26

faith in government enhanced by, 46–47

and ombudsman, 211, 219

in other nations, 24–25, 35, 219–21, 227–28

and tax avoidance, 163, 201–2

See also audits; Internal Revenue Service (IRS)

Tax Analysis Center, 166

taxation

and bad behavior, 37–41, 175–80

and good behavior, 36–37, 40, 73

history of, 1–3, 34–35, 45–46, 64–70, 126

important rule of, 48, 52

“neutral,” 37, 54, 58, 73

reasons for, 28–32, 35–48, 126

tax avoidance, 73, 213, 215, 232, 241, 252

and citizenship, 194–95

critics of, 66, 158–64, 199, 204

“Double Irish with a Dutch sandwich,” 151–53, 161, 164

earnings skimming, 155, 163, 166

inversion, 154–58, 161–62

investigations into, 51, 149–51, 154, 162–64, 198–99, 202–8

offshore tax havens, 200–202, 205, 207

profit shifting, 143–45, 148–49, 152–53, 158, 162–63, 165–70

by the rich, 54–55, 66, 109, 124, 133, 139, 197–208

shell companies, 152, 160, 199–204

and unfair tax system, 218, 221

See also corporate income tax: avoidance of; Philippine Cigar Case; specific countries

tax breaks, 9–10, 53–54, 64–65

advocates for, 56–57, 67–68, 72

elimination of, 60–61, 68–69, 86–91, 119, 125, 138, 219, 251–52, 255

for good behavior, 36–37, 40, 73

and loss of revenue, 78–82, 85–90

for the rich, 68, 70–77, 87–90, 98, 122, 125, 136–39, 252, 254

tax codes complicated by, 40–41, 222

tax expenditures as, 74–81

See also corporations: tax breaks for; tax preferences; specific types

tax code, 212–13

anti-complexity clause of, 5, 70, 211, 249

complexity of, 2, 48, 68, 73–74, 130, 209–19, 250

history of, 1–3, 69–70

in other nations, 219, 221, 255–57

simplifying of, 55, 214, 218–19, 225, 238, 241, 255

unified, 107–8, 228

See also tax reform

tax collection, 7, 11, 17, 34–35, 47, 55, 83–84, 166, 214–15, 219, 227–38, 243

“Tax Complexity Lobby,” 224–25

Tax Equity and Fiscal Responsibility Act (TEFRA), 64

tax expenditures, 74–81, 87–88, 91, 224, 252. See also specific taxes

Tax Foundation, 148, 247

tax-free countries/states, 183, 191–95

tax-free items, 237, 251

tax-free savings, 9

tax justice, 45, 135

tax law, 50, 64, 68–69, 148–50

complexity of, 2, 5–7

first in U.S., 45–46

violations of, 158–59

writers of, 10, 112–13, 123, 209–13, 245, 252

Tax Law Design and Drafting (Thuronyi), 158

Tax Policy Center, 136, 184, 247

tax preferences, 54, 68

carried-interest, 137–39, 254

elimination of, 55–57, 66–67, 219, 251–52, 255

explanation of, 76–79, 250

in New Zealand, 59–60, 62

and tax complexity, 40–41, 48, 55, 225

See also specific types

tax preparers, 6–7, 213, 215, 217, 219, 223–24, 252

tax rate

inequality in, 70, 123, 254

top, 82–83, 85–86, 107, 160

top marginal, 17–18, 59–60, 67–70, 76, 124

See also broad base, low rates (BBLR); flat-rate income tax

tax reform, 2, 61, 66–68, 91, 211–12

and BBLR, 56–58, 125, 218–19, 251–52, 255

fair type of, 95–96

of George W. Bush, 56, 88, 132

in New Zealand, 57–63, 65, 69, 251

of 1986, 10, 12, 85–86, 250–51, 254, 257

by rewriting code, 250–51, 255–57

in Slovakia, 107–8, 112–13

in U.S., 8, 12, 63–70, 73–74, 125, 241–48

and VAT, 229, 241–48, 255

Tax Reform Act of 1984, 64

Tax Reform Act of 1986, 12, 68–70, 85–86

tax revenue. See specific countries; specific taxes

tax systems, 27, 53–54, 213, 221

best examples of, 57–63, 73, 106, 251

complexity of, 5, 9, 26, 40, 48, 55, 64, 68, 224, 229, 237, 257

cost of, 214–15, 238

efficiency of, 3, 241–42

fair, 3, 28, 46, 55, 111, 114, 125–26, 229, 237, 253

goals of, 36, 41, 44, 46

simplifying of, 2–3, 7, 56, 61, 79, 97–100, 105, 107, 256

successful, 2–3, 7–8, 28, 51–52, 126–27, 218, 251–52, 256

unified, 107–8, 228

Tea Party, 85

technological advances, 49, 105

terrorism, 187

Thuronyi, Victor, 158

timber, 34, 59–60, 80, 131, 164

Times (London), 119

“tiny tax,” 180–85

tobacco tax, 17, 21, 37–38, 40, 176

Tobin tax, 180–83

Tokyo, Japan, 7, 25, 30, 187

Toscana, David, 177

transfer tax, 130

Treasury I (tax reform), 65–66

Trump, Donald, 12, 98–100, 117, 138, 158, 166, 253–54

trusts, 6, 216

Tsipras, Alexis, 47

Turkey, 15, 20

Tyco International, 156

Uganda, 47

U.K. Office of Tax Simplification (OTS), 220–21

Ukraine, 109

Ullman, Al, 245

Underwood-Simmons Tariff Act (1913), 1

unemployment, 42, 107–8, 114, 116, 127

Union des Associations Internationales, 50

United Arab Emirates (U.A.E.), 191–92, 194

United Kingdom/Great Britain, 15, 17, 20, 22, 31, 35, 49, 50, 57, 77, 96, 121, 131, 146, 157, 179, 200, 243, 255

charitable donations in, 40–41, 221

inequalities in, 119, 122

media of, 198–99

mortgage deduction eliminated by, 90–91

simple returns of, 7, 220–21

and tax avoidance, 159, 166–67

tax breaks in, 78, 80, 90–91

tax bureau in, 24–25, 220–21

tax on stock trades, 181, 183–84

tax rates of, 10, 19, 166–67

tax reform in, 69–70, 90–91

VAT rates of, 41–42, 235, 240, 247

United Nations, 34, 49

University of Tartu, 103–4, 113

Uruguay, 39

U.S. Congress, 7, 42, 80, 99, 113, 181, 194

accounting arm of, 147–48

and capital gains tax, 137–39

charities law of, 84–85

and corporate money, 63, 144

and corporate taxes, 165–66, 168–69

IRS berated by, 26, 161, 209–10

and pre-filled tax forms, 223–24

and tax breaks, 9–10, 56–57, 65, 71–76, 78, 89, 250–52

and tax code reform, 8–9, 12, 64–70

on tax complexity, 5, 26, 219, 249

and tax-ducking inversions, 161–62

tax evaders investigated by, 149–51, 154, 162–63

tax law written by, 1–3, 10, 45–46, 74, 209–13, 245, 252

See also bailouts; political contributions; U.S. House of Representatives; U.S. Senate

U.S. Constitution, 46

U.S. Customs House, 35

U.S. House of Representatives, 64, 67–68, 74, 245

U.S. Justice Department, 201, 205–7

U.S. Mint, 33

U.S. Senate, 1, 66–68, 74, 77–78, 150, 154, 162, 245

U.S. Supreme Court, 30–32, 46, 123, 161

U.S. Treasury Department, 5, 78, 159, 182

on lowering tax rates, 251–52

secretaries of, 65–66, 161, 211, 248, 250

and tax breaks, 71–72, 80–81

and tax-ducking inversions, 157, 161–62

and tax expenditures, 75, 87–88

and tax policy, 245–46

and tax reform, 65–66, 250

value-added tax (VAT), 10, 19, 25, 110, 194

explanation of, 228–38, 241–46

raising rates of, 41–42, 111, 114

standard rates of, 183–84, 238–40

and U.S., 11–12, 229–30, 241–48, 254–55

See also goods and services tax (GST)

Vano, Vladimir, 106

Walgreens, 157–58

Wall Street, 10, 65, 70, 180–81, 184, 255

Wall Street Journal, 109, 119, 162–63, 169, 184, 190–91, 199, 205, 236–37

Wandell, Keith, 156

War of 1812, 34–35

Warren, Elizabeth, 117, 223, 253

Washington, D.C., 30, 69, 84–85, 120, 131, 136, 156, 169, 184, 198–99, 224

Washington Post, 116

water (safe, drinking), 39, 177–79

wealth, 110

wealth tax, 17, 124–25, 128–32, 173, 183, 192–93

See also gross domestic product (GDP); inequality, economic; rich, the; superrich, the

Wealth of Nations, The (Smith), 37

Wegelin & Co. (Switzerland), 205–6

welfare state, 80

widow’s mite, 27–28, 135

Wilson, Woodrow, 1

World Bank, 16–17, 23–24, 50–52, 57, 77, 126, 182

World Health Organization, 49, 176

world wars, 1, 50, 106, 121, 228

Zolt, Eric, 12