Posted on 08/02/2011 5:06:25 AM PDT by Cronos
There is a connection between taxation and jobs that is obvious if you take the time to look.
Several people talk about taxing the rich.
What most people fail to recognize is that another name for the rich is “the people who create jobs.”
Businesses and jobs can “vote with their feet” and move to places where they are wanted and away from places where they are not wanted.
For decades, business and jobs have been moving out of our area to places and countries that welcome them.
What does it take to encourage business and jobs to move into your country?
Have you ever heard of the Principality of Liechtenstein?
It is sandwiched between Switzerland and Austria, about 53 miles south of Friedrichshafen, Germany.
It is only 62 square miles in size with the Rhine River bordering Switzerland on the west and a range of mountains bordering Austria on the east.
In some places the country is little more than six miles wide.
Like England, Liechtenstein has both a parliament and a royal family.
The royal family lives in a castle near Vaduz, the capital city.
I am fairly certain that Liechtenstein served as the idea behind the books titled “The Mouse that Roared” and “Mouse on the Moon.”
Liechtenstein is too small to have a local currency.
For years they have used Swiss francs.
They have virtually no natural resources, other than some very nice ski slopes, but they do have wise leadership.
In a struggle to make ends meet financially, they reduced the corporate tax rate to encourage business.
Today, the maximum corporate tax rate in Liechtenstein is 18 percent.
Liechtenstein has a total population of slightly less than 34,000 but has more than 75,000 corporations, trusts and foundations registered in the country.
The taxes from these companies cover about 30 percent of the country’s annual budget, thereby requiring less in taxes from local residents.
These corporations also provide employment for more than 120 trust companies.
Liechtenstein has a terrible problem; because they have encouraged business they have too many jobs.
About half of the daily work force commutes from Switzerland and Austria.
And, the residents of Liechtenstein have the highest per-capita income in all of Europe.
Now would be a good time to bring this information to the attention of your elected officials in Washington and Springfield.
Anything that costs business, causes job losses.
Energy costs don’t get near the attention it should.
Nobody in DC wants to correlate the rising debt ceiling with declining jobs.
The rising debt ceiling has two consequences....
more regulation ...
to occupy employees in expanding federal bureaucracies...which expand because “they have more money” and another layer of bureaucrats need their 20 year promotions... Each round of regulatory expansion is the effective equivalent of another targeted tax increase on the object of the regulation.
more taxes...
The rising debt ceiling has demands and expectations of creditors for new elements of “revenue raising” by the Feds...taxes or fees.
In this strangling environment job creation is simply NOT possible.
In fact the only logical conclusion..can be ..is that the Federal apparatus -initially an asset to the United States..by virtue of its abilities to raise an effective Navy in the late 1700’s, and early 1800’s to facilitate overseas trade on behalf of the States, has become nothing other than the States greatest liability at this point in time. In the absence of profound regulatory and taxation reform-which is not capable of coming from the same minds that created the problem..we may well be at the end of the line.
For DC to face this fact...means the end of the K St-Congressional Party cycle in DC-the one that keeps repeating “2.4Trillion” as their mantra.
IMHO...the only solution is a 50 state secession from DC at this point...with a completely new “Constitutional Re-Federalization”..
bump.
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