Yesterday, US Treasury Department Secretary Jacob Lew said that it will decide "in the very near future" if it has the authority to strip tax incentives to American corporations relocating to foreign countries.
Lew is a proponent of such action, believing that US corporations leaving the US for better foreign tax rates, while maintaining headquarters in the US, should be violently opposed. The Obama regime has said it believes such legislative action should be retroactive, and authoritarians in the ranks are rising to the occasion to champion the tyrannical actions.
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I have been keeping abreast of this story for awhile on Denniger and other sites and I have actually taken my money out of companies that have even hinted at leaving the ol' USA behind. If I am stuck here so are they. I won't buy their product. I think that if a company leaves in that manner it should not be allowed to market and sell any product here.
ReplyDeleteI probably have a contrarian view on this subject. I fully support any company leaving America due to the excessive taxes. You must ask why a company is formed. A company or business has two functions to produce a product or service and to make a profit. A company must consider only those two things in its policy decisions. Their goal is to produce the product at the lowest cost. Here is a little secret taxes are a cost. If the company can move to reduce the tax burden, it can sell the product at a lower price and be more competitive. So yes, I support any company moving to reduce taxes and sell me a produce at a lower price. Just one more little secret no company or corporation pays taxes. They simply collect the taxes from their customers and pass them on to the government. Those are hidden taxes YOU pay not the company and that tax expense is hidden in the cost of a product or service.
ReplyDeleteYou want to see America’s economy explode. Eliminate all corporate and business taxes. Only tax the money once it leaves the company or corporation.
Badger
I have to agree with you on this Badger, not to not defend my position, but to say that to stimulate our economy, eliminate all Corp and Business taxes and personal income tax. Allow the Fed to live on what is enumerated in the Constitution, excise and tariffs revenue and watch this nation grow with unprecedented wealth and prosperity. Of course get rid of the alphabet agencies and the Federal Reserve and would do wonders too...
ReplyDeleteMy thoughts that if a company is US chartered then it should remain, if it leaves it should be excised and tariffed as if it is a foreign company selling goods and services here. Which, in essence whence it leaves it is a foreign company
Time and time again, a company moves out of USA to a better tax haven it produces a widget it sells for ten bucks here. Now, company moves to Cayman Island, it's tax structure costs now allow it to make it cheaper to sell here in USA but it doesn't, in fact most cases the costs remain or increase to the consumer. The company really likes the increased profit it is now getting because of the margin. So, USA should charge a tariff on that widget and it doesn't under all of the convoluted tax laws and treaties that have been put in place.
ReplyDeleteHello. Is this thing on?
ReplyDeleteAnybody in our government read or comprehend the Constitution?
Congress shall pass no ex post facto laws.
The republic is dead.
Yes and since 1865.
DeleteYes, damn Abraham...
DeleteAre the fools planning on changing our name from the United States of America to California?
ReplyDeleteIt would be more appropriate.......:)
Delete