The global economic is in bad shape because the most wealthy and top income earners pay too little tax. The governments do not collect enough revenue to pay for the services and expenditures, including the welfare for the very poor. These governments have run large deficits which are not sustainable.
To overcome this budget deficit, the governments have to raise the tax revenue on the very rich who are earning a disproportionate share of the national income. Different tax rates in various countries allow the rich people to use creative accounting to move their earnings to countries that charge the lowest rate of tax. This "beggar thy neighbor" competition, including tax havens, is causing further damage to the global system.
A possible solution, as advanced by Hilary Clinton, is to "raised taxes on the rich everywhere". It requires an international agreement. It is a necessary step to solve the global financial and economic malaise.
Read this article
http://www.cnbc.com//id/49150934
To overcome this budget deficit, the governments have to raise the tax revenue on the very rich who are earning a disproportionate share of the national income. Different tax rates in various countries allow the rich people to use creative accounting to move their earnings to countries that charge the lowest rate of tax. This "beggar thy neighbor" competition, including tax havens, is causing further damage to the global system.
A possible solution, as advanced by Hilary Clinton, is to "raised taxes on the rich everywhere". It requires an international agreement. It is a necessary step to solve the global financial and economic malaise.
Read this article
http://www.cnbc.com//id/49150934
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