5 Jan 10: Goldman Sachs has announced that it is reviewing the possibility of moving its London office outside of Great Britain because of high taxes. One reason for companies to move is for them to cut tax costs. Companies move from high-tax states to low-tax states, as well as from high-tax countries to low-tax countries, to save taxes. The United States has one of the highest corporate tax rates in the world, as well as one of the highest estate taxes (“death” tax) and capital gains taxes. These taxes give companies reasons to move outside the United States. When this happens, people lose their jobs. Even when companies stay within the country, high taxes may limit the number of jobs and the amount of salary that an employer can afford. High taxes hurt the economy.
When I go to Washington, I will work to reduce taxes on businesses and individuals. The income tax should be abolished and replaced by the “Fair Tax.” The death tax should be eliminated. The capital gains tax should also be cut. I want to stop the drain of businesses from our country and give foreign businesses a reason to move their operations to the United States, especially to the great state of Texas (a no-tax state).