Wealth Flees the Country to Escape Looters
Tax and spend liberals have been driving anyone interested in producing wealth out of California, leaving the state on the brink of bankruptcy. Chairman Zero and friends must figure this won’t be a problem for them, because you can’t escape the federal Leviathan by moving from one state to another. But then, you could always take your productive activity out of the country completely…
[A] wave of energy companies has in the last few months announced plans to move to Switzerland — mainly for its appeal as a low-tax corporate domicile that looks relatively likely to stay out of reach of Barack Obama’s tax-seeking administration.
In a country with scant crude oil production of its own, the virtual energy boom has changed the canton or state of Zug, about 30 minutes’ drive from Zurich, beyond all recognition. Its economy was based on farming until it slashed tax rates to attract commerce after World War Two.
It still has a chocolate-box old town with views over a lake to the high Alps, but is now surrounded by gleaming corporate offices — including commodity trader Glencore and oil refiner Petroplus — shopping malls and housing developments. …
Swiss cantons are free to set their own tax rates. For example in Zug, corporate tax is about 16 percent but can fall as low as 9.5 percent for companies that do most of their business outside Switzerland. That compares with an average global corporate tax rate of 25.9 percent, according to consultancy KPMG.
If the government had any interest in ending the recession, it would slash taxes; America could be booming like Switzerland. But the Obama regime is not about to let a crisis go to waste by letting it end.
On a tip from J. Cross-posted at Moonbattery.