Book Description

The taxation of international economic activities presents two essential considerations: revenues must be shared equitably by the nations involved, and those nations must be able to enforce their domestic tax laws.

Starting from these requirements of reciprocity and enforcement, Roy Rohatgi, an Arthur Andersen veteran with decades of experience, explains in this book the practical issues affecting international taxation of business income and capital gains. Unlike many books on this complex subject, his approach does not examine the tax perspective of any one country, but proceeds from an identification and analysis of the basic principles of the subject. This entails an understanding of factors, such as:
+domestic tax laws, rules and practices and how they conflict on cross-border transactions;
+bilateral tax treaties and their role in resolving international tax conflicts;
+the use of offshore financial centres in international tax structures and how to choose them;
+anti-avoidance measures imposed by national taxation authorities;
+the application of national judicial decisions and interpretations of national authorities; and
+international tax guidelines and interpretations of bodies such as the Organisation for Economic Cooperation and Development (OECD) and the International Fiscal Association (IFA).

Basic International Taxation describes each and all of these elements, weaving them into practical planning guidance providing a fundamental understanding of this subject in a single, easy-to-follow book. It explains those principles of international tax planning that take the costs and risks of international taxation fully into account and thereby optimize the after-tax returns on cross-border transactions. Several important current issues, including the taxation of electronic commerce, are also addressed.

Practitioners and students of tax law will benefit enormously from this clear-headed guidance, both for its day-to-day reference value and for the depth of understanding it conveys concerning essential principles. ... Read more

Book Description

The international aspects of income taxation have become increasingly important as countries worldwide have become more economically integrated. International Tax Primer provides an introduction to the policies that countries seek to advance with their international tax rules, with numerous examples drawn from the practices of both developed and developing countries. It grew out of the authors' work with the OECD in conducting seminars on international tax for tax officials in countries emerging from the collapse of the Soviet Union. The book emphasizes tax treaties and other cooperative arrangements that countries employ to coordinate their income tax systems with the tax systems of their trading partners.International Tax Primer strikes a balance between the specific and the general by illustrating the fundamental principles and structure of international tax with frequent reference to actual practice in a variety of countries. Coverage includes: +the role of the tax adviser; + tax planning techniques;+ international double taxation; transfer pricing;+ anti-avoidance rules; + tax treaties, including discussion of the OECD and UN Model Treaties; + emerging issues, such as e-commerce and harmful tax competition. The work also offers such practical features as: + an extensive glossary of international tax terms; and + a selected bibliography of international tax reference materials, including a list of periodicals devoted to international tax.Students, government officials, and tax practitioners who may be confronting international tax issues for the first time, as well as experienced international tax practitioners, will find International Tax Primer a helpful articulation of the fundamental principles that arise again and again in this field. The book works as both an introduction and a refresher in an area where issues often prove more complex than they seem and where a return to the basics is often the most helpful means of untangling a multi-layered problem. The second edition provides updates for recent developments and expands the coverage by providing many new examples. A chapter dealing with harmful tax competition, hybrid entities, and the taxation of e-commerce has been added to the book. ... Read more

Reviews (1)

Truly a good primer
This is the only book I found that actually explained everything in its table of contents in a way that I could understand. This is an excellent book for a total beginner just trying to understand the basic issues of thin capitalization rules, deductions vs. exemptions vs. credits, double taxation, tax sparing, tax havens, etcetera. ... Read more

Book Description

This NBER series presents current academic research in the areas of taxation and government spending. The papers included provide important background information for policy analysis without making specific policy recommendations.

Volume 17 continues the series tradition of addressing topics that are relevant to current issues as well as longer-range concerns, with topics that include the fiscal implications of the No Child Left Behind Act, the 2001 Tax Rebate, and the tax burdens of multinational corporations. ... Read more

Book Description

Here is a timely, comprehensive, and invaluable guide to using offshore investing as a method of asset protection. From evaluating places in which to invest to avoiding offshore scams, this easy-to-understand book provides you with all there is to know about keeping the money you earn.

Reviews (15)

Definitely a keeper!!
This book should definitely be on the bookshelf of anyone seeking to invest offshore. The author provides excellent insights into the hows and why's of offshore investing. Although the organization of the book was sometimes hard to follow, and did assume some technical knowledge of trust concepts, overall it was a good book and worth the money.

Outdated, old-fashioned and Politically biased book
First, the disk is useless. 80% of the references to internetsites are outdated. The other 20% are of questioinable nature (pureself-promoting advertising sites). Second, the author spend 30% of the book trying to convince the reader (which he patronizingly refers to as the Reluctant American) that it is worth-while to look off-shore for asset protection and tax avoidance structures. I expect most people buying this book would already be interested in the actual mechanisms of holding assets offshore, and would not need additional pushing. Third, the book does not offer any simple and structured explanations of the archaic schemes Arnold illustrates. Key issues such as tax planning questions are given with out reference or citation, while the footnotes are littered with irrelevant comments about stock prices and historical events.

This book is only for reader who need to be coerced into into simply travelling abroad, not for those that are looking for guidelines and contacts on how to keep money offshore. Better books (like Tax Havens of the World, or 2000 International Tax Havens Guide : The Professional's Source for Offshore Investment Information). You pay for what you get however, ast this book is inexpensive compared to the books that really add value.

Director of Corporate Finance
While some of the specifics are dated - this is the best book on the subject - bar none. It written by a real professional in the business - not book by a hot air promoter like the now indicted Terry Neals or the indicted Jermore Schinder that lie to their clients to get money.

Cornez tells it how it is for US residents.

Read, learn and don't listen to those who tell you what you want to hear - but just lead you in to trouble.

So when does he come out with the new edition?

Bob

Cornez knows what he's talking about...
Arnold Cornez is an attorney and an authority in the field with long experience working closely with and on the inside of offshore banks, trust companies, and other entities. He's the one I call first when I have an issue to discuss.

Cornez knows what he's talking about...
Arnold is one of the people I respect most in the field of international strategies and structures. An attorney with many years of experience, and working directly at the highest levels with foreign banks, trust companies, funds, and insurance companies, he's the one I call first to discuss an issue. I recommend the 'Offshore Money Book'. ... Read more

Reviews (33)

No one can stop paying ALL taxes, but you can the income tax
Irwin's book is the 2nd one I read concerning this issue, and was so well done, I kept investigating the claim of the "tax protesters. The truth be told, Americans have an obligation to pay taxes LAWFULLY imposed. However, as Irwin clearly points out, the irs does not lawfully impose this tax (income), because it is incapable of doing so. Therefore, millions of Americans pay what they think is a tax, while in reality, they are unknowingly contributing to the continuation of the collapse of the American System of Truth in taxation, and taxation WITH represention.
Since Irwin's first edition of this book, it has been updated with up to date info, and the results of years of many people's research into the Greatest crime to be imposed on the American people: The misapplication of the tax laws, by a non-government agency, who operate at the will (or the wilfull ignorance) of the US congress. Facts are facts, and that one cannot be properly disputed by anyone of any intellegence. Irwin's voice in this book, can help you to understand this huge, encompassing problem that is difficult to see, because of its emensity, and its huge volumes of information needed to know, in order to understand it.
"Most people fail to understand the tax laws, because they lack the ablity to understand the questions that arise from it" -author unknown. {please excuse spelling errors and typos]

Gallileo was put in jail too...so what's the point?
For anyone wanting to learn more about the way the Gov't illegaly collects the "income" tax, and exactly what authority the IRS has or doesn't have, this book is a must read.

And to those using the ...well he was put in jail..argument. Stop trying to scare people. Many great men and women throughout history have been jailed by corrupt governments who wanted to shut them up. So what's your point?

Besides Irwin is free and spreading the word, so if everything he's writing is a lie, why hasn't he been put in jail again for misleading people about taxes, and inducing them not to pay? Everyone knows where he is and how to contact him. Hmmmm.

Read. Learn. Get mad. Then do something to stop the insanity.

Three Year Old Love's Book
My three year old loves the fact that I bring home more than a hundred dollars a week more due to following Irwin's Banned Ideas. He loves that Daddy keeps every penny he makes and doesn't have to work to support any other families. He's glad I only have to work forty hours a week instead of more. All this and he knows he will never be liable to pay the income tax, just like in the first 130 years of our country. He doesn't quite understand how, if Washington, Lincoln and all the other early presidents didn't pay income taxes, we have arrived where we are today...

I HAVE RESEARCHED THE LAW AND KNOW THIS BOOK IS TRUE
AMERICA, IT IS TIME TO STAND UP AND FIGHT FOR YOUR RIGHTS! The Government has been illegally swindling the ignorant public for decades now with a massive web of lies, propaganda, and deception. But if you research the law for yourself, with the guidance of this book, then you will SEE FOR YOURSELF that income tax is voluntary! I have independantly verified the claims of this book and know them to be true. NO ONE WHO HAS FILED A ZERO RETURN HAS GONE TO JAIL FOR DOING SO - EVER! (except for those that were already in trouble with the IRS and filed a zero return as a last resort) Irwin was jailed illegally 13+ years ago for not filing a return, which is not what this book instructs you to do. I've heard several recordings/transcripts online of people who have used Irwin's material in IRS audits and the agents were terrified and could do nothing against the truth! They were exposed for the sham that they were! This book was a tremendous eye-opener and changed my life forever, but you MUST research the law for yourself to verify what you read!

The Government [and the] Income Tax ... How to fight back
This is the book that the government is trying to ban. It contains the ammo you need to fight back. This revealing book shows you that there is no law that requires you to pay the income tax. I love it!!! Thank you Irwin Schiff! ... Read more

Book Description

The last decade has seen important changes taking place in the tax regimes of many European countries. A comprehensive picture of what is happening in European fiscal systems has not been easy to find--until now. This impressive book featuring contributions from leading scholars, will be of great interest not only to academics but also to those involved in the financial sectors across the world. ... Read more

Book Description

Copyright © 2004 PricewaterhouseCoopers. PricewaterhouseCoopers refers to the network of member firms of PricewaterhouseCoopers International Limited, each of which is a separate and independent legal entity. All rights reserved.
www.pwcglobal.com ... Read more

Book Description

MEXICO TAX, LAW AND BUSINESS BRIEFING: 2005 provides guidance on tax and legal issues investors should consider when evaluating a possible company acquisition, starting a business or entering into a joint venture or strategic alliance in Mexico. This report highlights recent economic, legal, and tax developments in Mexico’s changing business environment, with content provided by experts at major accounting and law firms in the region.

The 2005 edition of MEXICO TAX, LAW AND BUSINESS BRIEFING features expert analyses on Mexico’s structural reform, public institutions, and economic development. This one-volume report offers extensive coverage of Mexico’s banking/finance, energy, labor, and maquiladora sectors, as well as in-depth analyses of topics such as corporate structuring, foreign investment, free trade, and taxation. ... Read more

Book Description

Is it possible to make multimillion-dollar profits outside the United States? Can you earn that money discreetly—without intrusion from Uncle Sam? And can you protect those assets from unfair lawyers, family members, and even your spouse in the event of divorce? The answer to all these questions is "Yes!" The secret is to put your money to work where it will generate the largest return—in one of the world's many offshore money havens.

In this completely revised and updated edition of his runaway bestseller, leading financial expert Jerome Schneider shows exactly how you can use the same international business strategies and tactics that have earned billions for America's most prestigious banks, corporations, and business people. He covers various ways to enter the foreign market, ranks the world's top offshore money havens, offers tips on how to avoid the common pitfalls of international business, and tells dozens of stories about creative men and women who have easily and successfully invested abroad.

Packed with hard-to-find information, The Complete Guide to Offshore Money Havens, Revised and Updated 3rd Edition spells out the latest, most comprehensive strategies for investing offshore to escape nuisance lawsuits, exorbitant taxes, and increasing invasions of privacy. You'll discover:

This is essential reading for anyone anxious to take control of his or her financial future in today's uncertain economy.

Reviews (43)

Enjoyable, can be a bit fuzzy at times
For the most part I thouroughly enjoyed this book. I have been quite interested in offshore advantages and this book is the first I've come across that explores those advantages with the idea that you will remain a US citizen. Other offshore books are geared towards those who wish to renounce their citizenship and move to another country. schneider's book goes into a great amount of detail on the legalities of offshore havens and even has a nice section that takes a look at each individual haven. You can find out which laws certain havens adhere to, how much it costs to bank there, privacy ratings, and much more. The only problem I had with the book is that a healthy portion of the book was geared towards those who wish to start an actual bank offshore, not just a bank account. However, Schneider clearly knows what he is talking about and anyone would do well to take a look at this book. In the Apeendix is a list of countries, the banks located there, the type of banking each one does, and how to get in contact with them, information we normally would have to pay an arm and a leg for. Warning: some citizens may be offended by Schneider's obvious disgust and anger over the taxes in the US.

Tried it, book doesn't work.
I followed the book's instructions to the letter and tried to open a current account at three Singapore banks recommended in the book. Only one replied, saying I could only open an account denominated in US dollars or Singapore dollars, and not any other currency, contrary to what the book says. In addition, this bank wanted somebody already known to them to introduce me to them before they'd deal with me. This book is a waste of time and money. I'm now doing internet research to get the informmation I need to do what I want to do. It takes a lot more time, but I feel confident of success.

we have a winner for "Worst Investing Book"!
this book is the equivalent of the saturday morning "get rich quick" scheisters you see on TV (and incidentally, the author, naturally, pitches his wares at the end).

the advice in the book goes beyond being bad...its irresponsible, misleading, and negligent.

here's one of the author's brainfarts (paraphrased):
"open an off shore reinsurance company, and then with your domestic company, purchase insurance from your off shore company--that way the premiums are both tax-deductible and a source of profit at the same time!" ---and how exactly would this help you in event of a claim?

or better still (and i quote):
" (US) banks are in bad shape--worse shape, in fact (though none are provided---a common refrain in this book, claims w/o data!), than most foreign banks. Of course, your money is insured up to $100k by the FDIC, but what would happen in the event of a universal banking crisis? Federal agencies could never handle the massive run on banks that would ensue..." ---oh, so this is to imply that a small private off-shore bank is going to serve as the new financial risk-free rate determinant (setting all financial markets back 100+ yrs), and this small off-shore bank is going to be far safer than the US Govt (FDIC)?

this book is an insult to anyone w/ a critical mind. its beyond terrible. its a great way to lose money, whether you invest as he advocates, or simply throwing away your $30 to buy it.

A collection of bedtime stories
This book is poorly structured. The author reiterates the same concept of going offshore over and over again. He does not reveal any detail on how to do it. Instead, he gives you a great number of short stories that he had heard from someone else. This was one of the worst books I had ever read! Stay away!

Good Introduction to the subject
There is a lot of information jam packed into this book. Mr.Schneider uses many examples, anecdotes, and political reasons for why you should move offshore and how to go about doing it.

Some of the ideas are never fully developed. Such as owning your own banks or captive insurance companies.

Plus with the new United States scrutinization of offshore havens after Sept. 11th much of the information is outdated and many ideas are now useless.

Mr.Schneider's book is easy to read and does a great job of pumping you up. It reminds me of an infomercial in that respect.
The primary detractor of the book is the constant selling of Mr.Schneider's services and other products.

Interesting read, I have been a financial advisor for 11 years and I have written several books on my area of expertise, but at the end of the day, when my clients ask me about going offshore I always discourage it. ... Read more

Book Description

Today, many people no longer limit the horizon of their activities and aims to the borders of their own country. New transport and communications opportunities, the political stability and integration of Europe, cross-border activities and prolonged stays in foreign countries have made the acquisition of real estate abroad an increasingly popular trend.

The International Real Estate Handbook is essential for anyone who is serious about acquiring, owning or selling international real estate. A comprehensive general chapter introduces all the key aspects, and a detailed coverage of 16 key countries then provides a very useful tool for advisers to private clients, such as private bankers, tax advisers, real estate lawyers, fiduciaries and other professionals handling the private residential sector of international real-estate. The Handbook will be of equal interest to individuals/private investors looking to aquire or sell real estate abroad.

The International Real Estate Handbook is a unique reference manual. It features:

• A comprehensive general chapter introducing the reader to all key aspects of acquiring and structuring international real estate.
• Specific chapters authored by leading real-estate lawyers from the respective countries.
• A complete and extensively researched address section listing carefully selected contacts (lawyers, tax advisors, real-estate brokers, banks, etc.) for each country, representing an eminently useful and practical resource.
• Several unique tables of international overviews and comparisons covering topics such as purchase costs, tax rates and inheritance laws relating to real estate.

Book Description

Political economists have viewed large public expenditures as a product of leftist government and the expression of a stronger representation of labor interest. The formation of governments' funding bases is a topic that has not been thoroughly explored, and this book sheds important new light on the issue of taxes and welfare. Beginning with a clarification of the development of postwar tax policies in industrial democracies, Junko Kato finds that the differentiation of tax revenue structure is path dependent upon the shift to regressive taxation. Kato challenges the conventional belief that progressive taxation leads to large public expenditures in mature welfare states. ... Read more

Book Description

Ever since the Boston Tea Party, courageous and patriotic citizens have rebelled against the government's overbearing and abusive taxation of its constituents. This book is the powerful rallying cry to all Americans to continue to fight against our ever-increasing taxes. Using as a touchstone the heroic incident in Tennessee, when citizens converged on the state capitol to protest and repeatedly beat back attempts to pass a state tax, Valentine weaves an inspiring story of how patriotic citizens have stood up to taxes in the past, how many intrepid constituents continue to fight, and how Americans should resist and even revolt against taxes on a state and national level. By exploring the crippling effects of taxes on our economy and the lives of each individual citizen and drawing from the stories of other revolts (with exclusive behind-the-scenes details about the Tennessee rebellion), Valentine will anger and incite readers to action, giving them the motivation and know-how to spread the word and activate a powerful new revolution. ... Read more

Reviews (3)

Interesting from political and historical perspective
I work in the state tax area, so I enjoyed the historical accounts of tax revolts.I also enjoyed hearing about the TN legislature's political moves used in trying to get a personal income tax passed.No surprise that the writing style is rather self-aggrandizing (Mr. Valentine is a talk-show radio host.)

Inspiration from a brilliant writer and speaker
I listen to Mr. Phil Valentine Monday through Friday, here in middle Tennessee.I and my family were at these Capitol Tax Revolt Rallies in Nashville.I urge you to grab the opportunity to become inspired toward "rebellion against an overbearing, bloated, arrogant and abusive government" by reading this book.Mr. Valentine is eloquent and, yet, easy to follow.

Come on!I'll meet you all at the town square!

Power to the People-YOU can make a difference
This is an extraordinary story about a once-in-a-lifetime experience. Buy this book today and soak up the joy and courage of a free people claiming their right to raise their voices in protest.

Phil Valentine was Tennessee's Paul Revere. Not only was he there, right in the middle of the action, he was rallying the citizens of Tennessee to claim their rightful place in government.

This is one amazing, inspiring story. GET THIS BOOK. ... Read more

Reviews (1)

Excellent explaination of the past and future
of American politics as we now know them today. After you read this book, you will understand what a republican is and a democrat is. It deeply explains what has happened to the minorities in our country and does make a good arguement how the 1964 Civil Right Act has been the catalyst to the current situation we have today. This book has made me more politically aware then ever before, and aided me in making a more educated decision of where I stand on the political continuim. This is an undervalued book on the market today, and is a great bargain for the knowledge it will give you of contemporary America. ... Read more

Book Description

Expert tax guidance for international mergers and acquisitions

As international mergers become increasingly common, corporate financial managers find themselves facing ever more complex tax issues. The process of determining the tax ramifications of international mergers and acquisitions can often make or break the deal. International Mergers and Acquisitions: A Country by Country Tax Guide provides all the information international accountants and lawyers need to strategize global mergers and acquisitions and make good choices based on their company’s tax needs. Authors Feinshcreiber and Kent provide up-to-date technical information for the finance or tax expert looking to assess the benefits of a merger or acquisition in a particular location. The book includes coverage of the United States, Canada, United Kingdom, Germany, Australia, Japan, France, Korea, Mexico, Russia, and others. Organized by country for quick reference, each section is written by an industry expert from the country under discussion. This book is the ultimate handy reference for CFOs, controllers, consultants, treasurers, tax directors, and international accountants seeking guidance on tax-efficient approaches to international M&A. ... Read more

Book Description

To "fight for your rights," or anyone else's, is not just to debate principles but to haggle over budgets. The simple insight that all legally enforceable rights cost money reminds us that freedom is not violated by a government that taxes and spends, but requires it--and requires a citizenry vigilant about how money is allocated. Drawing from these practical, commonsense notions, The Cost of Rights provideThe Economist). ... Read more

Reviews (15)

An Excellent Overview
The authors present a well written view of how the exercise of individual rights cost money if those rights are to be accomplished reasonably and in the abscence of armed force on the part of the individual. A number of previous reviewers have sanctimoniously and self righteously assumed for the book objectives far beyound its meager size and intent. I suspect they are the usual (1) "no gummint is good gummint" and (2) "no taxes is good taxes" types who feel that God, or something, made them exempt from cooperating with other people - a general description of so-called libertarians and far-right conservatives. In other words, their rights are paramount and they have no responsibilities or accountability. That road appears by magical thinking, as did garbage delivery and the sheriff's department in their view. They don't owe anyone anything for any reason, and they will shoot you to prove it. Sounds like they did not get socialized in K-12. Read the book for its intent, which is to object to "no gummint and taxes" movement in the US over the past decades which has brought us a really sorry pass and nearly into a form of fascism light. Holmes and Sunstein have done a great service here by raising substantive counter arguments to the "screw you, I got mine" groups in this era.

Revealing Explanation of the Necessities of Taxes
While it wasn't the most exciting book I've read, "The Cost of Rights" was a refreshing twist on the taxes issue. It challenged opponents of the current tax system or any tax system to think critically on the subject. I felt that Holmes' and Sunstein's approach was more effective than a listing of statistics. Rather than explaining economic reasons for taxes, they brought it to a level that related more to readers. Everyone has a reason to be interested in the preservation of his or her own rights. Without taxes for government support, we could not be guaranteed equal representation before the law. Taxes pay for law enforcement and other government services that are vital to our liberty. Without taxes, no one would every truly own property. Taxes serve as the standard for American's to exist and be governed by. They do not discern our morals, but instead preserve our rights. In "The Cost of Rights", the case for taxes was presented in such a way that I couldn't see liberty without some sort of tax system.

and what about this property rights business???
"How does capitalism affect liberty?

Private property is in many ways like a private form of state. The owner determines what goes on within the area he or she "owns," and therefore exercises a monopoly of power over it. When power is exercised over one's self, it is a source of freedom, but under capitalism it is a source of coercive authority. As Bob Black points out in The Abolition of Work:

"The liberals and conservatives and Libertarians who lament totalitarianism are phoneys and hypocrites. . . You find the same sort of hierarchy and discipline in an office or factory as you do in a prison or a monastery. . . A worker is a part-time slave. The boss says when to show up, when to leave, and what to do in the meantime. He tells you how much work to do and how fast. He is free to carry his control to humiliating extremes, regulating, if he feels like it, the clothes you wear or how often you go to the bathroom. With a few exceptions he can fire you for any reason, or no reason. He has you spied on by snitches and supervisors, he amasses a dossier on every employee. Talking back is called 'insubordination,' just as if a worker is a naughty child, and it not only gets you fired, it disqualifies you for unemployment compensation. . .The demeaning system of domination I've described rules over half the waking hours of a majority of women and the vast majority of men for decades, for most of their lifespans. For certain purposes it's not too misleading to call our system democracy or capitalism or -- better still -- industrialism, but its real names are factory fascism and office oligarchy. Anybody who says these people are 'free' is lying or stupid."

Unlike a company, the democratic state can be influenced by its citizens, who are able to act in ways that limit (to some extent) the power of the ruling elite to be "left alone" to enjoy their power. As a result, the wealthy hate the democratic aspects of the state, and its ordinary citizens, as potential threats to their power. This "problem" was noted by Alexis de Tocqueville in early 19th-century America:

"It is easy to perceive that the wealthy members of the community entertain a hearty distaste to the democratic institutions of their country. The populace is at once the object of their scorn and their fears."

These fears have not changed, nor has the contempt for democratic ideas. To quote one US Corporate Executive, "one man, one vote will result in the eventual failure of democracy as we know it." {L. Silk and D. Vogel, Ethics and Profits: The Crisis of Confidence in American Business, pp. 189f}

This contempt for democracy does not mean that capitalists are anti-state. Far from it. As previously noted, capitalists depend on the state. This is because "[classical] Liberalism, is in theory a kind of anarchy without socialism, and therefore is simply a lie, for freedom is not possible without equality. . .The criticism liberals direct at government consists only of wanting to deprive it some of its functions and to call upon the capitalists to fight it out amongst themselves, but it cannot attack the repressive functions which are of its essence: for without the gendarme the property owner could not exist." {Errico Malatesta, Anarchy, p. 46}.

Capitalists call upon and support the state when it acts in their interests and when it supports their authority and power. The "conflict" between state and capital is like two gangsters fighting over the proceeds of a robbery: they will squabble over the loot and who has more power in the gang, but they need each other to defend their "property" against those from whom they stole it.

The statist nature of private property can be seen in "Libertarian" (i.e. minarchist, or "classical" liberal) works representing the extremes of laissez-faire capitalism:

$Qf one starts a private town, on land whose acquisition did not and does not violate the Lockean proviso [of non-aggression], persons who chose to move there or later remain there would have no right to a say in how the town was run, unless it was granted to them by the decision procedures for the town which the owner had established" {Robert Nozick, Anarchy, State and Utopia, p. 270}

This is voluntary feudalism, nothing more. Of course, it can be claimed that "market forces" will result in the most liberal owners being the most successful, but a nice master is still a master. To paraphrase Tolstoy, "the liberal capitalist is like a kind donkey owner. He will do everything for the donkey -- care for it, feed it, wash it. Everything except get off its back!" And as Bob Black notes, "Some people giving orders and others obeying them: this is the essence of servitude. . . . {F}reedom means more than the right to change masters." {The Libertarian as Conservative}. That supporters of capitalism often claim that this "right" to change masters is the essence of "freedom" is a telling indictment of the capitalist notion of "liberty."

Simple assumptions, refreshing insights
As the authors say at some passage in the text, biblically simple ideas can make a profound difference. They say this when it comes to stress the importance of values like truth, honesty and integrity. We could also say the same about "loving your neighbor as yourself", the core of equality and reciprocity. This book is an example of how you can do much by sticking to simple assumptions. I must say that I appreciate Sunstein and Holmes a lot, and try to read all that thy write.

Steven Holmes and Cass Sunstein have made a strong case, in this and their other writings, that while we can appreciate and defend free enterprise, private property, private media, free exercise of religion, and so on, we still need a strong State to impose liberal constraints on private power.

In fact, that's what classical social contract theory is all about. The State is created by a social contract to protect individuals from one another, since the state of nature is a state of war between men, in which man is a wolf to other man.
Historically, the liberal revolutions were fought against not only absolute monarchs, but also against authoritarian churches, catholic and protestant, that used State power as a secular arm ("braccio seculare") to impose their own dogmas to believers and non believers, thus excercising an undue "power over the hearts of man" (Baruch Spinoza).

While we should advocate a strong marketplace of ideas (including religious ones), and while we should appreciate religion contribution to civic virtues, we still have to protect our liberal institutions from ilegitimate attempts to get these institutions under the control of iliberal and anti-liberal religious dogmas that want to fight equal religious liberty for all citizens and groups alike, believers and non-believers, men and women, adults and children, black and white, gay and straight. That's what separation of religious communities and State is all about.

When we think of Enron, for instance, we realize that corporations can be a Leviathan to many defenseless citizens, by totally destroying their life savings and prospects, with profound psicological consequences. That's plain evil. More, we realize that some already rich man will evade their duties of citizenship and civility (v.g. the duty of paying taxes) to get even more rich.

I am in favor of a strong market economy. It allows for human creativity, it creates wealth, it creates habits of work, trust and tolerance, it decentralizes authority, and by doing this it can further human rights.

But I think that only a robust liberal State, with strong legislative, administrative and judicial branches, can counter the threat to liberty, security and well being that some corporations here and there may represent. Power corrupts, and absolute power corrupts absolutely, as Lord Acton said. Only a strong liberal State can make, market economy both possible and credible.

Originally liberals are defenders of the State, an institution tipical of a civilized society. John Locke is the main example here. The liberal State is a mark of rationalization and civilization, as german philosopher G.F. Hegel would put it. That's why Oliver Wendell Holmes used to say that taxes are the price we pay for a civilized society. I totally agree with that. Liberal thought fears both authoritarian states, weak states or anarchy. In all these situations the strongest will prevail at the expense of the weak.

Of course much needs to be done to better the State, to make it more just, transparent and efficient. A lot can be done, if there is the political will to do this. One of the reasons why state reform is so difficult has to do with the way private interests, lobbies, and naked preferences take the dominance and try to use the monopoly of legitimate coercion to further their own ends. That's why a civic republican liberalism is so important when it comes to reform the State.

I think there is plenty of room for a strong and commited "intelligent design movement" in politics and institution building that is able to come up with liberating public institutions that support a liberating private sphere.

But one thing is certain: evading the cost of rights will, in the end, be evading their benefits too. Sunstein and Holmes... we got it.

credulous and non-analytical people will think the book deep
I'm sure that this book provides comfort for the credulous and non-analytical thinkers who want to be reassured about authoritarian opinions that they currently have, but for inquisitive readers, the book falls apart.

The authors' premise is that all rights cost money to enforce, and therefore rights are a good purchased by society for the individual, and therefore are in the same class as entitlements. The policy prescriptions that flow from this are two-fold: (1) entitlement spending ( a "right" to housing, top-notch medical care, etc., even if one never raises a finger to do a day of work) are rights that may not be denied, and would only ever want to be denied by selfish rightists; (2) traditional rights (free speech, free association, etc.) are created by society, and enforced by society, therefore have costs, and may be constrained in the interests of economy.

Most transparent sectarian political screeds at least resort to the rhetorical fallacy of argument from authority: basing an argument on the fact that Jefferson, or Madison, said it first. These authors don't even do the work to commit that fallacy; they merely assert their opinions.

An example: they assert that the right to not to have property arbitrarilly confiscated is granted by the government (as opposed to existing before the government, and continuiing under it), and that the government must thus fund anti-corruption investigators and judges in order to grant this right. They entirely miss the fact that the right under question would not even be under fire if it were not for an early government policy of supporting confiscation. This realization transforms their false argument about rights into the more factually correct statement that "if the government implements one flawed program, then it follows that we may need yet another program to keep the first in check".

The fact that perhaps both programs could be trashed is not even considered.

All in all, this book is a [...] piece from two authors unwilling to argue their point on either a philosophical or utilitarian basis, and instead depend on unsupported assertions and illogical thinking. ... Read more

Book Description

This Nutshell provides the fundamentals of U.S. international taxation. Addresses the U.S. activities of foreign taxpayers, as well as the foreign activities of U.S. citizens and residents, focusing on the U.S. foreign tax credit. Special U.S. international tax provisions creating incentives or disincentives for certain conduct or forms of business transactions are featured. Also discusses U.S. transfer taxes such as estate, gift, and generation-skipping tax on both resident and nonresident aliens. ... Read more

Reviews (1)

International Taxation
Doernberg provides a helpful overview of the important topics most relevant in International Taxation. This summary will be a useful guide for students, practitioners and anyone else interested in the U.S. tax issues relevant in international business. While short by design, this book contains a surprising amount of information. ... Read more

Book Description

Ever since Colonial times, Americans have been bedeviled by high taxes that seem to return little of material value to citizens. Taking a page from Thomas Paine's "Greedy Hand" manifesto, Amity Shlaes has written a provocative and fascinating book exposing the inequities of our present tax system, and offers concrete, coherent solutions to simplify our lives.Today, taxes make up more than a third of our economy, the highest level in peacetime history. We truly live in the land Paine foresaw when he warned of government "thrusting itself into every corner and crevice of industry." This book is a cultural examination of the way taxes influence our behavior, and how they force us into an arbitrary system that punishes families and individual enterprise. Shlaes shows how so-called tax breaks do little to help families and how married women are unfairly taxed more. She uncovers the problems that engage and enrage us, proving that Social Security issues and school inadequacies are at heart tax problems. And she charts a course out of the madness of tax oppression, offering a number of solutions that will give each of us a fairer, simpler system. With compassion for Americans and their dreams, Shlaes makes the best case yet for rethinking our tax code.
... Read more

Reviews (41)

An Interesting Look at How Government Takes More and More!
The 20th century was an arms race between the governments in the United States and its citizens to determine who would control the citizens' income. Government was on the offense and the citizens were on the defense. The citizens lost to date. Taxes went from less than 5 percent of income to 40 percent over that time. Most would agree that we cannot afford another century like that one.

This book nicely lays out the history of taxes that take more income and waste a lot of time and effort in the process. The author looks at sales taxes, withholding taxes at work, the marriage penalty in the income tax, whether the housing deduction for interest and taxes is a good thing or not, the problems with taxes on domestic help, property taxes and school support, the social security system, and estate taxes.

She doesn't like much of what she sees, and is concerned that reform could simply lead to adding new types of taxes (like a national sales tax while keeping all of the old taxes).

The newer the tax or tax idea, it seems like the worse it is working.

Her solutions are basically principles to be followed in reforming taxes. I doubt if they will be followed anytime soon. Recent polls show that most Americans are concerned about paying off the national debt and fixing social security before doing anything about cutting taxes.

Although most of her observations were good ones, I was a little doubtful about her automatic focus on the high income people being taken to the cleaners unfairly. There was not as much attention paid to benefits that lower income people may be receiving.

If you spend time thinking about how to keep your tax bill down, there's not much new in this book. If you are new to all of the ways that government helps you spend your money, this is a good introduction to the subject.

The book is well written and pleasant to read. The only drawback I found was that it was a little depressing to be reminded of how much I actually pay to all of the various governments.

On the Cost of Paying More and More
When George Washington was president, taxes were few. Since then, times have really gotten expensive. The 20th century especially was an arms race between the governments in the United States and its citizens to determine who would control the citizens' income. Government was on the offense and the citizens were on the defense. The citizens lost to date. Taxes went from less than 5 percent of income to 40 percent over that time. Most would agree that we cannot afford another century like that one.

This book nicely lays out the history of taxes that take more income and waste a lot of time and effort in the process. The author looks at sales taxes, withholding taxes at work, the marriage penalty in the income tax, whether the housing deduction for interest and taxes is a good thing or not, the problems with taxes on domestic help, property taxes and school support, the social security system, and estate taxes.

She doesn't like much of what she sees, and is concerned that reform could simply lead to adding new types of taxes (like a national sales tax while keeping all of the old taxes).

The newer the tax or tax idea, it seems like the worse it is working.

Her solutions are basically principles to be followed in reforming taxes. I doubt if they will be followed anytime soon. Recent polls show that most Americans are concerned about paying off the national debt and fixing social security before doing anything about cutting taxes.

Although most of her observations were good ones, I was a little doubtful about her automatic focus on the high income people being taken to the cleaners unfairly. There was not as much attention paid to benefits that lower income people may be receiving.

If you spend time thinking about how to keep your tax bill down, there's not much new in this book. If you are new to all of the ways that government helps you spend your money, this is a good introduction to the subject.

The book is well written and pleasant to read. The only drawback I found was that it was a little depressing to be reminded of how much I actually pay to all of the various governments. Every year, I find April 15 more and more depressing.

Government Has No Money That It Doesn't Confiscate
I just don't understand how it's considered "greedy" for me to want to keep all of the money I have worked to earn -- but it's somehow NOT greedy and/or lazy and/or selfish for someone to want the government to provide his health care (or pay him when he is unemployed) with money that has simply been confiscated from some other person who performed the work to earn that money. Can somebody explain that to me, please?

Silly stuff from someone who likes unemployment
As the title says this is silly, political posturing by
someone who has hers and doesn't particularly care if people
are out of work. Maybe she doesn't care if you're on the dole.

Simplistic Nonsense
This book has so many historical distortions, simplistic arguments, and blind-passion its tough to know where to start. So I'll confine my review to some of the obvious problems she either ignores or skates over...

To begin with, Shlaes completely ignores the international picture. Amazingly, America is the LEAST taxed developed nation in the world, yet has the largest military forces (bigger than the next 10 nations COMBINED), the largest road network, the largest criminal justice system, the largest education system, the largest number of public funded colleges, the largest (combined) police force, the largest number of professional fire-fighters and so on and so on. All these huge organisations cost huge amounts of money; a simple yet devastating fact Shales prefers to ignore. Instead she talks of waste and corruption. Well, those are probably inevitable, given the mind-blowing size and complexity of the organisations the US has.

Then there's the whining and angry (although passive and prosperous) American middle class, provided with free education, subsidised housing (tax cuts for home buyers), subsidised gasoline, subsidised roads, and so on. In fact this class has some claim to be the most subsidised group in the country.

Shales may well be aware of the major paradoxes I've outlined above; how else to explain her hopelessly weak suggestions (worthy of a High School debate) on reforming and and streamlining the system?

Ultimately, like every other commentator and politician, Shales cannot escape the contradiction that American citizens have grown to demand and expect the best from their government, yet (unlike any other aspect of national and private life) they expect the best to be provided for almost nothing, as if by magic, by a mysterious entity called "Washington."

Without a major rethink of American citizen's expectations and the country's world role, any talk of significant tax cuts will remain limited to misty-eyed dreamers like Shales and her followers. ... Read more

Book Description

The ongoing process of increased integration of national economies, culminating in the single European market of 1992, still leaves as virtually separate the national fiscal systems. In this book international economists Jacob Frenkel and Assaf Razin join forces with public finance economist Efraim-Sadka to provide a new treatment of international taxation, one that focuses on the interactions between fiscal policies of sovereign nations and the magnitude and directions of international capital and goods flow in an integrated world economy. They unfold a lucid and clear analysis of the implications of tax competition, tax harmonization, capital flight, external imbalances, and the terms of trade for the design of efficient national tax systems. The book extends concepts developed in Frenkel and Razin's Fiscal Policies and the World Economy and includes a theory of taxation in an open world economy.

International Taxation in an Integrated World presents the stylized facts and concepts and outlines the main issues of international taxation and the implications for the international movements of goods and capital. It reviews the principles of international taxation and international macroeconomics, analyzes the international transmission of various tax and budget policies, and provides a rigorous analysis of optimal open economy tax policy in an integrated world economy. Special emphasis is placed on the interdependence between direct and indirect taxes and on the international allocation of saving, investment, and production.

Jacob A. Frenkel is Director of Research and Economic Counselor at the International Monetary Fund. Assaf Razin is Daniel Ross Professor of International Economics at Tel Aviv University. Both are Research Associates at the National Bureau of Economic Research. Efraim Sadka is Professor of Economics at Tel Aviv University. ... Read more