The road to serfdom logic of Obama's corporate tax plan
Shikha Dalmia 2-5-15
F.A. Hayek, a Vienna-born economist who taught at the University of Chicago in the 1950s, won the 1974 Nobel Prize for explaining how monetary policy contributes to business cycle booms and busts. But his more penetrating insights were actually in a slim, populist 1944 pamphlet called The Road to Serfdom, in which he argued that government interference in the economy inevitably raises the specter of tyranny in our politics.
Hayek's thesis was that when the government tries to achieve broader collectivist-socialist goals by interfering with private economic transactions, it puts the country on a road to serfdom. Individuals naturally resent the intrusions, and look for way to circumvent them, subverting the government's grand plans. But the government doesn't accept failure and back off. It redoubles its efforts and cracks down in evermore draconian ways. Individuals try to circumvent those new government intrusions. And so on.
That's the logic playing out in the left's frenetic efforts to make American companies pay their "fair share" in taxes. Witness President Obama's latest budget plans to go after the foreign earnings of alleged corporate tax scofflaws. (These plans stand little chance in the GOP-controlled Congress.")
American corporations face a tax double whammy.
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