Last week, the Patent Office granted Chainbridge Software Inc. a patent on a method for identifying companies that are avoiding state income taxes by shifting income to low tax states or foreign subs in non-arm's length transactions, and estimating the amount of state tax underpayments.
I guess it is hard to argue with this. Every state is starved for revenue these days. A software program that would help maximize that income seems like a good idea, right?
But while the good old Patent Office is hard at work on behalf of Chainbridge and those state tax revenue folks the House and Senate are pushing hard on new legislation. They are pushing for passage of a new law, H.R. 1249, S.23.
So what is the intent of the new law?
It would prohibit patents on strategies to avoid, reduce or defer federal, state, local or other taxes.
The word "ludicrous" comes to mind. Software to collect taxes get patent protection while software that would minimize taxes is made illegal. The folks in Washington are trying to have it both ways. And they will succeed.
I can’t think of a better example as to why we should rip up the tax code and do something dramatically different. The system is a joke.
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So much scope for improvement.
ReplyDeleteSo little interest (by our governing class) in making things better for the common citizen.
(Continue to) Vote out incumbents!
Bruce, it still seems that you don't want to see government shrink at all. You're always thinking up new ways to increase revenue rather than advocate any cuts, layoffs or service reductions.
ReplyDeleteWhy? I'm truly curious...you're an intelligent and perspicacious individual and you must realize that increasing - or even maintaining - the scope and size of government is perniciously destroying North American and western nations' productivity.
Flat tax now....
ReplyDeleteThe issue is not more or less government but what happens when a country has no morality so it needs a government to tell the people to go left, I mean go right, I mean go left... What a kick with the cartoon, Welcome to hell! Ha, ha. Tower of Babel is more apt. If you are new to history, in Babylon they had double-digit interest rates. People made money off money, not labor. Babylon or New York/Washington may not need more regulation, but with all this special interest for the banks in bailouts and Fed subterfuge, with spineless leaders, expect more of the same--of going nowhere fast, except perhaps, higher up in the Tower of Babel.
ReplyDeleteI just came across this blog on H.R. 1249:. If you are trying to rally support or see what others are thinking check out POPVOX.COM POPVOX is a nonpartisan, transparent, public platform for activity on bills pending before Congress, built by a former Congressional staffer, a former advocate, and the founder of GovTrack.us.
ReplyDeleteWith a link from your article to the action page for hr 1249https://www.popvox.com/bills/us/112/hr1249 or other pending bills, your audience can get more information about the bill, find the bill’s language when it is available, see what others are saying, and share their opinion with Congress. We also have an easy widget, if you would like to show readers a real-time opinion tally:
Thanks and please do not hesitate in contacting me if you have any questions!
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Devin Patel
devin@g.popvox.com
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ReplyDeleteTaxation Services