Disappearing Constitutional Rights
It seems that Mr. Obama is serious about reducing the deficit. Well, not exactly! He is not going to cut government spending. He has decided to chase down international companies headquartered in the United States, which avoid corporate taxes on profits gained from offshore business.
His administration figures this will add 20 billion dollars a year to the US treasury, less the cost of the 800 new IRS employees and the legal challenges that are certain to mount.
Mr. Obama thinks it is unfair that companies only pay corporate taxes to the countries in which their foreign offices and manufacturing plants exist. Currently, if the remaining profits stay offshore, the US Treasury can’t confiscate them. Obama believes these companies should be required to pay US and foreign corporate taxes on the same profits.
His argument is simple. If a company is obligated to pay double taxation on profits gained offshore it will shutdown the foreign facilities and return the jobs and revenues to the United States.
Of course, Obama is an economic idiot. These companies do have a better alternative.
With the stroke of a pen they can headquarter in any country with a more favorable tax climate. And then they can play the same “cost charade game” that Japanese vehicle manufacturers have employed for decades. Namely, inflate the cost of the parts they export to the United States to reduce the profits on goods manufactured in the US.
This in turn reduces the corporate taxes owed the US government. Obama and the majority of the Democrats are too stupid to bring the US corporate tax bite down to an inviting level. Granted, this will not encourage corporations to rush back to a tax friendlier America.
At best, it would slow the corporate flight.
It’s a curse. Corporate managers read the papers. They are aware that Obama wants to double or triple the cost of domestic energy with his cap-and-trade initiative. And they are aware that by government fiat, Tim Geithner, Barney Frank and the United Auto Workers Union will soon be running Chrysler.
They are also aware the US banks have been nationalized and Obama and his gang of socialists fired General Motor’s CEO. All in all, it’s obvious that the United States government is no longer interested in private enterprise staying private.
But this is just the economic side of his plan. He is preparing to change the rights granted private individuals (which includes corporations). In the United States, unlike countries under rigid totalitarian control, the judicial system recognizes that people are innocent until proven guilty.
Obama’s tax proposal reverses this principle. Every individual or corporation that keeps money offshore will be automatically considered a tax evader. These individuals and corporate entities will have to prove their innocence, rather than the government proving their guilt.
The bottom line: Obama is cutting the most basic legal right of every US citizen for a measly $20 billion. What rights and freedoms will Americans lose when his $9 trillion deficit brings the US economy to a standstill in a few years?
His administration figures this will add 20 billion dollars a year to the US treasury, less the cost of the 800 new IRS employees and the legal challenges that are certain to mount.
Mr. Obama thinks it is unfair that companies only pay corporate taxes to the countries in which their foreign offices and manufacturing plants exist. Currently, if the remaining profits stay offshore, the US Treasury can’t confiscate them. Obama believes these companies should be required to pay US and foreign corporate taxes on the same profits.
His argument is simple. If a company is obligated to pay double taxation on profits gained offshore it will shutdown the foreign facilities and return the jobs and revenues to the United States.
Of course, Obama is an economic idiot. These companies do have a better alternative.
With the stroke of a pen they can headquarter in any country with a more favorable tax climate. And then they can play the same “cost charade game” that Japanese vehicle manufacturers have employed for decades. Namely, inflate the cost of the parts they export to the United States to reduce the profits on goods manufactured in the US.
This in turn reduces the corporate taxes owed the US government. Obama and the majority of the Democrats are too stupid to bring the US corporate tax bite down to an inviting level. Granted, this will not encourage corporations to rush back to a tax friendlier America.
At best, it would slow the corporate flight.
It’s a curse. Corporate managers read the papers. They are aware that Obama wants to double or triple the cost of domestic energy with his cap-and-trade initiative. And they are aware that by government fiat, Tim Geithner, Barney Frank and the United Auto Workers Union will soon be running Chrysler.
They are also aware the US banks have been nationalized and Obama and his gang of socialists fired General Motor’s CEO. All in all, it’s obvious that the United States government is no longer interested in private enterprise staying private.
But this is just the economic side of his plan. He is preparing to change the rights granted private individuals (which includes corporations). In the United States, unlike countries under rigid totalitarian control, the judicial system recognizes that people are innocent until proven guilty.
Obama’s tax proposal reverses this principle. Every individual or corporation that keeps money offshore will be automatically considered a tax evader. These individuals and corporate entities will have to prove their innocence, rather than the government proving their guilt.
The bottom line: Obama is cutting the most basic legal right of every US citizen for a measly $20 billion. What rights and freedoms will Americans lose when his $9 trillion deficit brings the US economy to a standstill in a few years?
posted by David at
7:43 AM
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