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Mark Steyn: U.S. business could be cooked in a VAT [Value Added Tax]
The Orange County Register ^ | March 26, 2010 | Mark Steyn

Posted on 03/26/2010 5:24:30 PM PDT by 2ndDivisionVet

May I be boring? Or, if you're a regular reader, more boring than usual?

Bear with me. There's some eye-glazing numbers and whatnot.

In 2003, Washington blessed a grateful citizenry with the Medicare prescription drug benefit, it being generally agreed by all the experts that it was unfair to force seniors to choose between their monthly trip to Rite-Aid and Tony Danza in dinner theater. However, in order to discourage American businesses from immediately dumping all their drug plans for retirees, Congress gave them a modest tax break equivalent to 28 percent of the cost of the plan.

Fast forward to the dawn of the Obamacare utopia. In one of a bazillion little clauses in a 2,000-page bill your legislators didn't bother reading (because, as Congressman Conyers explained, he wouldn't understand it even if he did), Congress voted to subject the 28 percent tax benefit to the regular good ol' American-as-apple-pie corporate tax rate of 35 percent. For the purposes of comparison, Sweden's corporate tax rate is 26.3 percent, and Ireland's is 12.5 percent. But just because America already has the highest corporate tax in the OECD is no reason why we can't keep going until it's double Sweden's and quadruple Ireland's. I refer you to the decision last year by the doughnut chain Tim Hortons, a Delaware corporation, to reorganize itself as a Canadian corporation "in order to take advantage of Canadian tax rates." Hold that thought: "In order to take advantage of Canadian tax rates" – a phrase hitherto unknown to American English outside the most fantastical futuristic science fiction.

Ask yourself this: If you impose a sudden 35 percent tax on something, are you likely to get as much of it? Go on, take a wild guess.(continued)

(Excerpt) Read more at ocregister.com ...


TOPICS: Business/Economy; Editorial; Government; Politics/Elections
KEYWORDS: economy; healthcare; liberalfascism; obama; obamacare; socialisthealthcare; socializedmedicine; taxes
AT&T says they will lose about a billion dollars in this QUARTER due to ObamaCare. Do you think that businesses will put up with this or leave/shut down?
1 posted on 03/26/2010 5:24:30 PM PDT by 2ndDivisionVet
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To: 2ndDivisionVet

They will leave, as will Deere and Cat and...

Deere and Cat have already been considering going out of the states. To SE Asia I hear. That is from the local Deere Dealership which is owned by the corp. They bought this dealership after the prior owner went belly up.

The manager was at a corp meeting where they discussed this move.


2 posted on 03/26/2010 5:36:12 PM PDT by crz
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To: 2ndDivisionVet

CAT made the same announcement and they have manufacturing outside US. Seems they are finally waking up to the bill.


3 posted on 03/26/2010 5:41:24 PM PDT by Orange1998
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To: 2ndDivisionVet

Dubai’s real estate market has been suffering lately. I think it is just about to rebound.


4 posted on 03/26/2010 5:41:29 PM PDT by marron
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To: 2ndDivisionVet

Just wait till everyone figures out that Companies will pay the penalty and drop coverage. Then the TAX FREE company paid premium will instead be paid with AFTER TAX money by YOU. Not only will you be paying the full boat you will be paying additional taxes on top of it.


5 posted on 03/26/2010 5:47:16 PM PDT by Orange1998
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To: crz
"They will leave, as will Deere and Cat and..."

Indeed. Both of these outfits have extensive factories all around the world. They could shutter their U.S. manufacturing plants and not miss a beat.

A shame really. Both are American icons, started in the early years of the last century by visionaries.

We are screwed. Thanks, Bam-Bam.

6 posted on 03/26/2010 6:12:58 PM PDT by SnuffaBolshevik
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To: SnuffaBolshevik
Back in the early 70’s...Cat made just about everything in the U.S...I work for a general contractor and he bought a little D3 dozer...man he was so proud...than he found out it was made in Japan..he sent it back...bought a used one..
7 posted on 03/26/2010 6:28:03 PM PDT by Hojczyk
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To: Orange1998
Not only will you be paying the full boat you will be paying additional taxes on top of it.

Ah, so that's what "we are the change we've been waiting for" means.
8 posted on 03/26/2010 6:49:08 PM PDT by Egg (Only in America can a poor black Kenyan grow up to be president.)
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To: SnuffaBolshevik

Ya know..after this debacle is over and the Conservatives gain power back they need to cut and gut each and every social program in the government. Starting with the EPA and right down the HHS. The dept of interior must be made self sustaining or else it can go the way of the dinosaurs.


9 posted on 03/26/2010 8:36:43 PM PDT by crz
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To: 2ndDivisionVet
"AT&T says they will lose about a billion dollars in this QUARTER due to ObamaCare. Do you think that businesses will put up with this or leave/shut down?"

You're the one who will be paying when the rates/prices are raised to compensate.

When Black people complain that they can't pay the new/higher rates, AT&T will be forced to provide them free service and your rates will go even higher to pay for that.

10 posted on 03/26/2010 9:03:13 PM PDT by blam
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To: blam

My wife and I have that Smart Talk phone from Wal-Mart: $45/month unlimited cell phone, text, browsing, etc. I also have Magic Jack on my PC. $20/YEAR!!


11 posted on 03/26/2010 9:41:19 PM PDT by 2ndDivisionVet (If we're an Empire, why are Cuba, Iraq, the Philippines, Japan & Germany independent?)
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To: blam

My wife and I have that Smart Talk phone from Wal-Mart: $45/month unlimited cell phone, text, browsing, etc. I also have Magic Jack on my PC. $20/YEAR!!


12 posted on 03/26/2010 9:43:57 PM PDT by 2ndDivisionVet (If we're an Empire, why are Cuba, Iraq, the Philippines, Japan & Germany independent?)
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To: 2ndDivisionVet; Rummyfan; Howlin; riley1992; Miss Marple; Dane; sinkspur; steve; kattracks; ...
Pinging the Mark Steyn Ping List.

Welcome to the newest members of this ever expanding  list.

My apologies  for  not being able to Ping the earlier pieces.

A combination of very long hours at my job as well as  my "second job" have just not left a lot of time for FReeping.

As you can see, I have my hands full.



Other columns by Steyn can be found here;

I'm with the ‘intolerant’ Quebecers


SOFT FURNISHED DESPOTISM



On or off, please FReepmail me.

Cheers,

knewshound

knewshounds blog

13 posted on 03/27/2010 7:52:48 AM PDT by knews_hound (Credo Quia Absurdium--take nothing seriously unless it is absurd. E. Clampus Vitus)
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To: knews_hound
Aren't you finished yet?


14 posted on 03/27/2010 8:02:38 AM PDT by darkwing104 (Lets get dangerous)
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To: 2ndDivisionVet

But...But.. Obama Promised a reduction in premiums...


15 posted on 03/27/2010 8:04:22 AM PDT by mylife (Opinions...$1 Halfbaked...50c)
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To: darkwing104

Aren’t you the comedian!

I’m tryin man, I really am !


16 posted on 03/27/2010 8:18:01 AM PDT by knews_hound (Credo Quia Absurdium--take nothing seriously unless it is absurd. E. Clampus Vitus)
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To: darkwing104
You have to admit I think, I am making progress !



Cheers,

knewshound
17 posted on 03/27/2010 8:24:57 AM PDT by knews_hound (Credo Quia Absurdium--take nothing seriously unless it is absurd. E. Clampus Vitus)
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To: knews_hound
Aren’t you the comedian!

Just ignore me...Its the drugs.


18 posted on 03/27/2010 8:25:44 AM PDT by darkwing104 (Lets get dangerous)
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To: knews_hound
Looks pretty good!


19 posted on 03/27/2010 8:27:22 AM PDT by darkwing104 (Lets get dangerous)
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To: darkwing104

I hope you are feeling better.

It sucks being down like that.

Get well soon, K?

Cheers,

knewshound


20 posted on 03/27/2010 8:35:23 AM PDT by knews_hound (Credo Quia Absurdium--take nothing seriously unless it is absurd. E. Clampus Vitus)
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To: 2ndDivisionVet
So that's a thousand fewer people who'll be working on new stuff. Well, so what? The public won't miss what they never knew they had. So, again, the effect is one of disincentivization – in this case, of innovation.

Everything we "discover" about ObamaCare will be a horror in waiting... Steyn sees the future.

21 posted on 03/27/2010 8:35:34 AM PDT by GOPJ (http://hisz.rsoe.hu/alertmap/index2.php?area=dam&lang=eng)
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To: knews_hound

Looking good.


22 posted on 03/27/2010 8:41:01 AM PDT by mylife (Opinions...$1 Halfbaked...50c)
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To: knews_hound

The SH**** part of remodeling kitchens and bathrooms is they get used and that always slows progress.


23 posted on 03/27/2010 8:42:56 AM PDT by mylife (Opinions...$1 Halfbaked...50c)
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To: knews_hound
I hope you are feeling better.

The swelling has gone down and I can read again...

Thanks


24 posted on 03/27/2010 8:44:47 AM PDT by darkwing104 (Lets get dangerous)
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To: Dr. Scarpetta

ping


25 posted on 03/27/2010 8:47:40 AM PDT by GOPJ (http://hisz.rsoe.hu/alertmap/index2.php?area=dam&lang=eng)
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To: 2ndDivisionVet

What is magic jack?
Is that dial-up service?


26 posted on 03/27/2010 8:57:25 AM PDT by Scotswife
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To: Scotswife

http://www.magicjack.com/2/?mid=308001&a=55959&s=7

It’s VOIP “voice over internet protocol”

You need a broadband internet connection first, but it works great. I use vonage but should dump it for magic jack


27 posted on 03/27/2010 9:20:03 AM PDT by mylife (Opinions...$1 Halfbaked...50c)
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To: mylife

Thanks for that!

A few years ago we tried to get a DSL signal but failed.

I should give it another try and see if they’re able to do it now.


28 posted on 03/27/2010 9:23:59 AM PDT by Scotswife
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To: 2ndDivisionVet

Interesting he should mention Tom Horton’s. It seems to be the ONLY fast food establishment NOT to be booted out of military facilities in Afghanistan.


29 posted on 03/27/2010 9:36:50 AM PDT by EDINVA
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To: Scotswife

I haven’t tried DSL but cable VOIP works well.


30 posted on 03/27/2010 9:47:26 AM PDT by mylife (Opinions...$1 Halfbaked...50c)
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To: GOPJ

Thanks for the ping. All we need now is the VAT tax...


31 posted on 03/27/2010 9:59:56 AM PDT by Dr. Scarpetta
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To: Scotswife

No, it’s a Voice Over Internet Protocol (VOIP) similar to Vonage, but only $20/year (2nd and ongoing years) vs. $20/month. Bought it at Wal-Mart but it’s available other places and online. First year is free. It uses your high speed Internet to make calls, so long distance is free.


32 posted on 03/27/2010 10:17:01 AM PDT by 2ndDivisionVet (If we're an Empire, why are Cuba, Iraq, the Philippines, Japan & Germany independent?)
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To: 2ndDivisionVet

Works good?


33 posted on 03/27/2010 11:10:41 AM PDT by mylife (Opinions...$1 Halfbaked...50c)
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To: 2ndDivisionVet

Steyn nails it.


34 posted on 03/27/2010 11:25:24 AM PDT by Gritty (Today the future lies between the certainty of decline and the probability of catastrophe-Mark Steyn)
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To: 2ndDivisionVet

does magic jack really work?


35 posted on 03/27/2010 1:34:33 PM PDT by cherry
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To: cherry

Yes. Any problems I have are due to my ISP, not Magic Jack.


36 posted on 03/27/2010 1:36:42 PM PDT by 2ndDivisionVet (If we're an Empire, why are Cuba, Iraq, the Philippines, Japan & Germany independent?)
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To: mylife

It works fine unless my ISP is on the fritz or down.


37 posted on 03/27/2010 1:39:27 PM PDT by 2ndDivisionVet (If we're an Empire, why are Cuba, Iraq, the Philippines, Japan & Germany independent?)
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To: knews_hound

The re-model on your bath is taking shape! I did one a couple of years back.


38 posted on 03/28/2010 8:24:05 AM PDT by wjcsux ("In a time of universal deceit, telling the truth becomes a revolutionary act." - George Orwell)
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To: 2ndDivisionVet

Emerson Electric announced that they were moving overseas. The CEO said that the high cost of manufacturing in the U.S. and government over-regulation were driving them out of the country. This was a true American company that is over 100 years old.


39 posted on 03/28/2010 8:32:53 AM PDT by wjcsux ("In a time of universal deceit, telling the truth becomes a revolutionary act." - George Orwell)
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To: SnuffaBolshevik
This is not an unforseen consequence. This is in fact, INTENDED.

He is on a mission to destroy the U.S.A.

40 posted on 04/07/2010 1:48:08 PM PDT by Paul Ross (Ronald Reagan-1987:"We are always willing to be trade partners buTt never trade patsies.")
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To: 2ndDivisionVet

The only way to have a VAT, which may be necessary to stop the invasion of subsidized imports without a tariff (still wouldn’t fully level playing field, but would help) and to make the poor have a stake in tax reductions, is to eliminate the production taxes on firms. I.e., no corporate/private income taxes. No regulatory. No capital gains. No inheritance taxes. THEN a VAT would be offset, and we would face charges on imports that are currently non-existent. And the Obama crowd would wind up paying something they currently don’t- FEDERAL TAXES!


41 posted on 04/07/2010 1:52:58 PM PDT by Paul Ross (Ronald Reagan-1987:"We are always willing to be trade partners buTt never trade patsies.")
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