Punishing U.S. multinationals will simply encourage U.S. companies to shrink by selling foreign operations to foreign companies.
Anybody know an island we can take over?
“Headquarter here, bank here: no Capital Gains taxes, no Corporate Income taxes, just a business friendly environment!”
Why have a US based business?
Or by encouraging US companies to become foreign companies. If GM goes belly up here, its foreign subsidiaries will still survive.
Nobody should be surprised. This is the endpoint of democracy. The majority vote themselves monies from the public treasure, and vote for such monies to first be legally taken from some small minority (under 5% of the population). As the markets respond to this legalized theft, government revenue will diminish and shrinking majorities will move down the food chain to take from growing minorities, until 51% are taking from 49%. Following this, the egalitarian facade will be abandoned, with those so deemed by the government to be able but unwilling to work placed in labor camps.
Throw away the constitution, throw away any value ascribed to liberty, and this is what you obtain. It is a mathematical reality - the republic has been supplanted by a democracy. The conservative fusion held it off for a few additional years by motivating folks who would otherwise vote for “more free stuff” to instead vote according to non-economic principles. Demographic realities doomed that effort.
The sole remaining countervailing force is the lack of political globalization - entailing the barriers of war and migration, as well as economic competition. Once a global legal and economic framework is agreed upon, mankind will complete the descent into democratic socialism and an age of tyranny. That is not our future - it is the future of our children.
This is exactly what occurred to me. Such a tax will make those overseas operations more valuable to a non-US company than a US company.
Why won’t our leaders get a clue. If we lower the US corporate rates to the lowest in the world, a large number of foreign companies would start operations here. Also if we don’t tax the worldwide income of US multinationals they will be able to expand versus the competition. I kind of think having Coca-Cola as a US company owning things all over the world as a healthy thing for our economy. Much better than a Swiss company owing the Coca-Cola brand.
Well, This will certainly help the US Stock Market and domestic economy.
Ted Kennedy will not be happy.
Republican leaders should lead the charge in accusing Obama and the Democrat Congress of slowly destroying this country and our way of life.
Start calling them out on their plans to heavily tax oil companies which will result in the oil companies heavily taxing everyone who drives or uses electricity. Start accusing the Democrats of taking what should have been a pure emergency stimulus bill and instead layering it with unrelated wasteful spending that borders on political malpractice with much more to come. Finally, start accusing them of damaging the U.S. currency with their pet project spending at a time when the country is in debt and can’t afford it. Accuse them of behaving the same way the lenders & automakers have been.