Posted on 05/20/2002 2:54:57 AM PDT by Action-America
|
"Democrats Spread Lies About Expatriation" |
(Note: I took the liberty of highlighting the BIG LIE in this article.)
Democrats Blast Firms Over Offshore Tax Breaks
May 18, 2002 11:15 AM ET
WASHINGTON (Reuters) - Democrats on Saturday said U.S. companies seeking to avoid paying millions of dollars in taxes by moving their headquarters to offshore tax havens were "unpatriotic" and called for legislation to stop the practice.
"The tax dodgers may set up paper headquarters in Bermuda, but they continue operating in the United States," said Rep. Jim Maloney of Connecticut in the weekly Democratic radio address.
"They still receive federal, state and local services such as police, fire and public schools," he added. "And, of course, they still rely on the protection of our courageous Armed Services, here at home, and around the world. The only difference is: they now get it all for free, while U.S. citizens and loyal U.S. companies are paying the bill.
"This is unpatriotic, especially in light of our current economic situation," he added.
Maloney said he and Rep. Richard Neal, a Massachusetts Democrat, have sponsored legislation designed to stop companies from moving offshore for tax reasons.
"Our bill simply says that corporate expatriates, who are U.S. companies in fact, must continue to pay their fair share of U.S. taxes," Maloney said.
Similar bipartisan legislation has been introduced in the Senate, but it is unclear whether Congress will enact such a bill. House Ways and Means Committee Chairman Bill Thomas, a California Republican, has said he plans for the tax writing committee to examine the U.S. corporate tax structure and ways to help U.S. firms compete in international markets.
Reuters is doing what the liberal media always does. They're covering up those lies.
Note that mixed in carefully among the name-calling and class envy, was a blatant, unmitigated LIE! The democrats state that, "The only difference is: they now get it all for free...", as if moving their incorporation offshore excuses companies of all taxes. This is typical democrat strategy. Mix in just one blatant lie that you want the public to focus on, among lots of name calling and class envy. If you do it well, then friendly liberal media sources, like Reuters will not point out the lie or challenge it in any way.
In this case, the one thing that they want the uninformed masses to take away from all of this, is the false impression that when companies reincorporate offshore, they suddenly have to pay no tax at all (Notice the reference to getting all of their US services for free). Of course, Reuters made no attempt anywhere in that article to point that those companies do continue to pay tax on all of their US sourced income. They just let that lie stand unchallenged.
There is also an unspoken lie in that article, as well. They call the corporations that leave "unpatriotic", in order to stir up class envy among the poor and middle class. Yet again, Reuters covers up this misconception by making no mention of the fact that the US stockholders of those companies have to vote to approve such measures.
The final lie is the implied lie, that legislation can force companies to stay here. In fact, it is past legislation by those same bodies of government, designed to force companies to stay here, that is responsible for the current level of capital flight and offshore reincorporation and further such laws will only make matters worse. But, don't expect to see Reuters point that out.
In fact, no country has ever figured out a way to force capital to stay anywhere. The more they tighten their grip, the more wealth slips through their fingers.
The only way to keep wealth here is to repeal all of the "force" laws and replace them with "enticement" laws. We should encourage and reward, rather than discourage and penalize.
The single biggest step that we could take in that direction would be the passage of the National Retail Sales Tax NRST. It would not only stop both corporate and individual expatriation, but it would encourage much previously expatriated wealth to return.
I had a fellow Freeper call me 'unpatriotic' because I was complaining about paying so much in taxes. That's the term used by the desperate sheeple when they have no leg to stand on.
We need a NRST now!!
The Dems are lying again. (Yeah, I know. So, what's new?)
Of course Russian business taxes are so high, above 100% in some places, that most businesses have to keep two sets of books, one for real and one for the tax inspectors. They also budget in bribes, booze and hookers for when the inspectors come around.
That's one reason it was so easy for them to go after Gusinsky when they wanted to stop his media empire from not toeing the party line (his empire is now run by a state-controlled company). Every company is guilty of financial shadiness, so you can go after any of them at any time.
What the soccer moms and other useful idiots fail to grasp is that corporations do not pay taxes. They pass them on to the consumer in the form of higher prices. The fools that are so easily swayed by class warfare tactics are too stupid to figure this out. When the taxes that corporations have to collect are high, they either have to raise prices, which costs us more, or they have to cut expenses, which usually comes in the for of job cuts or canceling raises or reducing benefits for their employees. Every time class warfare tactics are used, it is vital to label these fools for the jealous and greedy whiners that they are.
The CT state RATs just don't understand why Stanley doesn't want to pay taxes on both their domestic and foreign sales, something their overseas competitors do not have to deal with, and are trying to portray it as somehow being unpatriotic. Instead of making it more attractive for Stanley to stay here, they want vilify them for not wanting to pay more taxes. Our "Attorney General" little dick blumenthal has filed and injunction to prevent the move ostensibly becausee the state hold a good amount of Stanley stock. Of course, he would file a lawsuit againts deciduous trees to prevent them from dropping their leaves in the fall if it would get his mug in the news.
If the move offshore is denied, I'm hoping Stanley will at least move to another state with far more reasonable state taxes and leave CT high and dry. Sometimes things need to get worse before they get better.
I'm in your boat :^)
If I could only find a good cash business...
If any one would like to be removed from my CT Bump list, please let me know and it will be done ASAP. Conversely, if you would like to be added the same holds true.
Ahhhh, but notice I only said good. :^)
Around here, guys do pretty well with mowing and snowplowing. Right now, I only dabble. I may have to get a little more involved! The pizza guy up the street from us does very well for himself. I never thought there was that much money in pizza, but when you only claim 50% of your earnings it adds up fast!
The best legislation they could propose would reduce both the rate and the complexity of the tax code. Of course, being democRATs, they wouldn't ever consider that.
Businesses don't really pay taxes anyway. Their taxes are just another cost of doing business that gets passed along to their customers.
Further, embedded taxes (so called "business" taxes) would be paid by consumers in prices and by workers through lower wages.
A flat income tax is still an income tax. It still requires the IRS. It still requires payroll taxes totaling 15.3%. It still requires withholding (I hate withholding!)
That's 13% tax and 15% payroll for 28%. Then add the costs of the IRS. THen remember to keep your records for 7 years. THen remember that the IRS can put you in jail for making an honest mistake. THen remember the IRS definition of "income" and "expense" and "deduction".... ad infinitem
With an IRS, freedom is at risk. THe only way to eliminate the IRS is to eliminate the income tax code... all of it.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.