Quote:
Originally Posted by 12clicks
I was hoping someone of intelligence would ask this but you'll do as a foil.
We live in a global economy. like it or not, those are the facts. Smarter, hungrier countries are luring corporations to them with low or no corporate taxes. With them go jobs. Thinking that we're somehow going to teach GE a lesson and "close their loopholes" is silly. There are too many stable, business friendly countries to set up shop in and we're seeing it happen daily.
The bright side is that there is no better place to do business than in the US and all things being equal, corporations WANT to do business here. So we need to make all things equal.
Eliminate corporate taxes for companies headquartered in the US. Tweak the rules a bit so that the corps MUST bring jobs back with them and our jobs problem would be over. Putting all those people back to work fixes the economy and makes up for the lost revenue. Its a simple easy fix but obama and the left can't do it because they've spent their entire lives explaining to the rabble how evil corporations are.
Minte, what do you think of that?
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I agree that many of our corps move to other countries because of tax benefits. However, it's not the zero corp rate that does it. Some of the top countries like Ireland just have a lower rate, and on average those same corps pay about an equal rate here or more because of Vat. Then they can own corps out of those Countries and those Countries don't require taxation on the transfer of that money, unlike here.
Even countries with super low rates and zero corp tax rates use other zero/low rate countries for tax benefits and more importantly, lower wages.
However, that is not why those corps don't build here.... that's why they move from here.
They don't move back here, come here, re-invest here with the billions they've made off shore, because of Capital Gains Tax. Would you move a billion dollars to setup shop if the gov was going to take 20-40% off the top, gross? Of course not.
I do believe we're in a global economy as well... however I realize that means people should stop expecting jobs to return here and start looking outside our borders for work. Just like I don't only do business in America, and if any of us did, we would all be rather screwed.... like an American without a job.