Posted on 09/28/2010 1:05:16 PM PDT by 1rudeboy
Ending the deferral of foreign income is another tax on U.S. employment.
Democrats may be dodging a vote on the Bush-era tax cuts, but that doesn't mean they don't want to raise taxes before November. Witness this week's showdown in Congress over increasing the tax on the profits of American companies with foreign subsidiaries to punish firms that relocate plants overseas. How much more harm can this crowd do before it's run out of town?
Like so many others, this tax increase is being promoted by President Obama, who declared last week that "for years, our tax code has actually given billions of dollars in tax breaks that encourage companies to create jobs and profits in other countries. I want to change that."
Democrats around the country are making this issue their number one campaign theme, since they can't run on health care, stimulus or anything else they've passed into law. Think about this: One of the two major parties in the world's supposedly leading economy is trying to hold on to its majority by running against foreign investment and the free flow of capital. This is banana republic behavior.
We're all for increasing jobs in the U.S., but the President's plan reveals how out of touch Democrats are with the real world of tax competition. The U.S. already has one of the most punitive corporate tax regimes in the world and this tax increase would make that competitive disadvantage much worse, accelerating the very outsourcing of jobs that Mr. Obama says he wants to reverse.
At issue is how the government taxes American firms that make money overseas.
(Excerpt) Read more at online.wsj.com ...
ping
Money-making is their secondary goal with taxes. Control is of absolute importance to them. They use taxes as a way to control people’s behavior.
It’s even more simple than that: continue policies that drive U.S. companies to locate overseas, and score political points (and campaign contributions) for whining about it . . . .
Between the taxes and the regulations, it is a wonder we manufacture anything stateside. And it not just the Feds. The state and local governments are sometimes worse. If a plant is under union labor, it is on thin ice in so many cases.
I always thought we would be better off if we sent Steve Jobs overseas....
Oh, wait!!!!
That's good to hear. So will you recommend a corporate tax rate of 15%, or will you drop it all the way to 10%?
“Money-making is their secondary goal with taxes. Control is of absolute importance to them. They use taxes as a way to control people’s behavior.”
You are absolutely correct. Remember during the campaign, his answer about capital gains tax rate reductions increasing revenue? “This isn’t about revenue, this is about ‘fairness’.”
When a socialist talks about fairness, the government vacuum cleaner hose is close to your wallet.
You Mean like $2 BILLION DOLLARS in Obama-backed loans for Petrobras??
Or Obama-backed loans to GM to open the Tech Center in China that was SUPPOSEd to go in Kokomo, Indiana?
THAT KIND of sending our money overseas to subsidize jobs?
Why? What did Steve do this time?
I guess NAFTA, CAFTA, WTO, UN, MFN for Communist China...was not enough to send jobs overseas for the Liberal Free Trade Globalists (which Obama is one)
But watching knee-jerk reactions is fun, also . . . please continue.
Someone is going to have to sit down and review every liberal bill to hit this nation in the last 30 years, prioritize in which order they should be changed and change them.
This will encourage companies that make more than 50% of their profits outside the US to relocate to a tax haven like Switzerland or Singapore and become a non-US company. They would reduce their taxes in the US and increase share holder value. Some companies have already done this..or been acquired by a foreign company..like Bud.
Industrial policy, complements of Washington, D.C.
Yes, it’s that easy.
How about eliminating the Corporate Income Tax completely and see how many jobs that creates ? Eliminating not just the tax payments, but the overhead of tracking and paying them would be such a global competitive advantage that job growth would explode here.
The government should be required to get its revenues from workers who can vote them out of office, not Corporate entities that don’t even get a vote in elections. That is taxation without representation.
Sometimes it's the only reaction in town.
Sounds good to me.
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