Higher Taxes for Business Mean We All Pay

Washington Post ^ | 6/30/09

[FromLori]

Sometimes what's politically irresistible is economically nonsensical, as we may soon be reminded. The Obama administration, desperate for revenue and spotting an easy target, is proposing three hefty tax increases on business. If the administration gets its way, the result will be bad news for all Americans.

The first instance of dangerously mixing politics with economics was the administration's announcement in May that it wanted to "reform our international tax laws" so that they don't "stack the deck against job creation here on our shores."

In a smooth bit of political rhetoric, the White House linked international corporations to individuals who illegally evade taxes by secretly stashing income overseas. "Today our tax code actually provides a competitive advantage to companies that invest and create jobs overseas compared to those that invest and create those same jobs in the U.S.," or so began the White House's May 4 statement. In the very next sentence, the administration segued to "our tax system is rife with opportunities to evade and avoid taxes through offshore tax havens."

The average citizen had to conclude that most big U.S. companies are tax cheats. Only a dedicated student of accounting would figure out that the term "tax haven" as defined by the Treasury Department means any country with a lower corporate tax rate than America's, which is all countries except Japan.

The reality is that the administration is lashing out against perfectly legal behavior. A U.S. company that makes money in Country X pays Country X's taxes on that money. If the company ever brings the money back to the United States, it must also pay the tax that would be due under America's higher rate. The administration argues that because the United States has almost the world's highest corporate tax rate (and even Japan's is ie

[YankeeReb]

Typical liberal logic: Businesses move overseas to evede high US taxes so instead of lowering taxes to make the US more competitive, tax them on money not even earned in the US. Yeah , that's the ticket, then they'll have to bring their operations back to the US. Good Lord we're ruled by complete idiots.

Nov 2012 can't come quick enough.

[Blood of Tyrants]

Nov 2010 is much closer. With the economy on a collision course and the Rats steadily increasing the speed, the people are becoming more and more alarmed. And I put the blame squarely on the shoulders of the idiots who bought the empty “hope and change” rhetoric. Damned fools.