Posted on 12/12/2010 3:55:10 AM PST by Scanian
Edited on 12/12/2010 4:06:21 AM PST by Admin Moderator. [history]
You’re in good company as most people choose the easy way —complain, blame others, and call people names. It’s just not the best way.
Nice BS. Where talking about the manufacturing of VIABLE products, micro chips, electronics, pharm, etc. not buggy whips.
The following table produced by the Tax Foundation ranks nations according to corporate tax burden. As we see, the U.S. has the highest combined corporate tax rate behind Japan. (As we learned in last month’s ProfitScore IQ, companies in New York City have the dubious distinction of paying the highest corporate taxes in the world at a combined rate of 46.2%.)
U.S. corporations currently pay a tax rate that is 50% higher than the average for the OECD thirty most industrialized nations. But that isn’t the whole story.
Of even greater concern is the fact that of that elite group of 30 nations, the U.S. is the only country that taxes its companies (and citizens) based on citizenship, not residency. That has created a unique problem for US companies with operations abroad and one that has required some rather imaginative solutions to keep them competitive globally.
Back in 1984, the Foreign Sales Corporation program was Congress’s way of leveling the playing field for U.S. multinationals due to the fact that the U.S. is the only major industrialized nation (and one of only three countries in the world, namely the Philippines and Eritrea) that taxes based on citizenship. This puts American companies operating in foreign territories at a competitive disadvantage visa vie companies from other countries.
Subsequently, the World Trade Organization in 2000 ruled that the FSC rules were an illegal subsidy and allowed the EU to levy $4 billion in tariffs against U.S. exporters and multinationals unless the rules were replaced. In response, Congress adopted the Extraterritorial Income Exclusion (ETI) Act of 2000, but that was also successfully challenged by the EU.
In response, the ETI was replaced by the American Jobs Creation Act of 2004 signed by President Bush. It provided $140 billion of tax relief to domestic manufacturers and other producers, including several sectors that in the past, never qualified for tax relief. The corporate tax rate for domestic manufacturers dropped from 35% to 32%.
For a one-year period, U.S. multinationals were able to repatriate foreign profits at a 5.25% tax rate. This rate also applied to deemed dividends accumulated by affiliates of controlled foreign corporations that are exempt from current taxation under the Internal Revenue Code Kennedy Amendments of 1962, according to economist and international trade expert Walter Diamond.
Instead of the tax losses predicted by Democrats and even some of the Bush Administration economic advisors, the move caused a flood of overseas cash to be repatriated to the U.S. from more than 800 companies - approximately $362 billion was repatriated from foreign operations, according to the July 1, 2008 Wall Street Journal article “Corporate Tax Cut Windfall.”
After the one-year period expired, companies would be taxed at the new corporate rate of 32% on repatriated income. Before the law was enacted, companies had to pay 85%, so this was an improvement. The Act also greatly reduced the double taxation of U.S. exporters and overseas manufacturers. Was it any wonder that more than $600 billion in corporate profits sat overseas?
If overseas corporate earnings had been repatriated under the tax rules Obama has proposed, as much as $510 billion would have gone to taxes. But the reality is that corporations would have permanently kept the income abroad.
Phase two of Obama’s plan was made public before the election in his Patriot Employer Act, in which he promised to address these corporate “tax breaks.” Promises in a presidential campaign are not unusual and often forgotten once the candidate wins.
Unfortunately, this one wasn’t. Even more unfortunate, it is these so called tax breaks for which Congress has fought so hard keep so that U.S. multinationals could remain competitive with their global counterparts. An end to these breaks would force companies with overseas operations to pay the U.S. domestic tax rate (currently a minimum of 35%) on all income-no matter where it is earned-unlike the companies of every other industrialized nation against which American companies compete.
Taxes vs. GDP Growth from 1960 to 1996:
MORE HERE http://www.investorsinsight.com/blogs/profitscore_iq/archive/2009/06/19/are-you-in-the-top-5-or-do-you-invest-like-everyone-else.aspx
During the primary (so-called) debates Obama was asked why he opposed corporate tax rate cuts even though they increased tax revenue. His response began with 'it's a question of fairness'. Let's face it, people who bring up 'fairness' are more often than not just plain selfish, stupid, and vindictive.
You appear to be more intent in preventing the Japanese from making a profit, than building factories in the U.S.
Seriously, cut the BS:
"We need more factories!"
"Not those factories!"
I don't think people realize that "if you don't do as I say, you're a traitor" is a hollow argument. If you couple it with, "I want the government to make you do as I say," it gets rotten.
Rotten and hollow arguments from a bunch of wannabe dictators, in favor of something they don't have the courage to call a Five Year Plan, or Giant Leap Forward. Welcome to the protectionist mindset.
Good news is there's more than one easy way, and happy-with-reality only takes effort at first but it yields more success and it's more enjoyable to other freepers.
A 100+ years ago, the buggy whip manufactures sure considered their products viable. It was just that damn horseless carrage that made life a bitch for them.
With hyper individualist goons like you in charge we would have lost WW2. I favor libertarian economics within the USA. Where we have a good court system and rule of law. But I favor economic nationalism for external trade policies where there is anarchy, tariffs and trade barriers put up by our competitors. Same as other nations w pride and integrity like Japan and Germany.
Pride in America is your lesson today.
Your second lesson is to shuck off 50% of your I I I me me me mine mine mine attitude
Are you in the export business by any chance?
LOL, and iirc he called me a hyper-capitalist. Leftist tactics right out of Rules for Radicals. Obama and the mainstream press use it all the time and they never see conservatives, only 'ultra-conservatives' --Christians are all 'fundamentalist Christians' and the right wing becomes the 'extreme right wing'.
Ya can't buy entertainment like this!
Hey clown. You don’t even live here. You bugged out. Me— I am an economic nationalist and in favor of pro-American trade policies. Something you know nothing about. You have no loyalty to America, you don’t even reside here
I guess I’m just a nostalgic fool...
As a former blue collar laborer, I understand the point of moving on, but when it concerns the importation of building supplies, steel, tech, clothing, it’s a different issue.
The problem is the cost of producing essential domestic product exceeds demand. That’s #ed up for a country that’s so damn proud of itself, and has sadly abandoned production for gambling.
Yes, I am fine with people who want to invest in America and hire Americans. If we cut our highest in the world corporate tax rates, we could get even more factories built here. Employing Americans.
You have no pride.
I'm not proud of big government conservatives like you.
You have no right to call yourself a patriot.
If you say so, comrade.
Whatever you do, don’t admit that you moved somewhere to avoid paying taxes, because paying taxes is your patriotic duty.
We wouldn't turn the clock back even if we could because we owe our kids and their kids the opportunities we and our parents had.
Oh I know, and every time I salute the flag I run right out and vote for more democrat tax hikes.
/sarc
Dennis wants us to pay higher taxes, because he’s worried about the interest rate we pay on the trade deficit.
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