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This morning's GPS 10.31 is quite interesting. Fareed Zakaria interviewed 4 CEO's including Google's Eric Schmidt that have profited from globalization.
The thing I remember most from Fareed today was the conversation with the IBM CEO who said, yes, the lower wages of the Indian and Chinese worker were a consideration, but, more than that, the potential of a whole new overseas market is what is really driving this outsourcing.
In other words, by employing these people and paying them money, money they otherwise wouldn't have had, the corporations are now creating a vast new consumer class for their products.
Anyway you cut it, the well-being of the American worker and a continuation of the American way of life or the American Dream is NOT what these executives care about. At all. They are all about expansion of their global markets.
At the same time you have these same executives, IBM guy again, saying our people lack the skills and education to do the jobs of today and tomorrow BUT the newer entrepreneurs fight tooth and nail against any taxes for education. 60 Minutes did a piece tonight on Washington state which wants to fund an income tax to pay for education. These well educated entrepreneurs say they'll move. So, they want it both ways - educated worker but no taxes.
I think I'm moving to Panama to get away from this insanity.
You brought up a valid point there. What market share in China is IBM realizing? The Chinese have their own brands now and are unlikely to rely on one particular foreign supplier. Take for example, when it suited them over French sale of military aircraft to Taiwan, they dumped French TGV in favor of German's product.
We already did the tariff war thing with the Smoot Hawley Act in 1930 and it just helped the depression along.
I think if you are going to use tariffs they should be well thought out and applied.
Net importers (like US, now) benefit from import tariffs. Pretty simple concept. S-H was in an era when the US was a net exporter. Whole different world. No real comparing the two situations, but would rather make sense to contrast them.
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The best thing is just to get rid of all corporate and business taxes and just tax personal income.
And why in the world would anyone -- other than a corporation or business -- want to do that?
And why in the world would anyone -- other than a corporation or business -- want to do that?
Well assuming you have a decent business knowledge (which you don't, obviously) you would know several things happen when you don't tax business.
1) Flight of capital into the USA- When there are no taxes, businesses flock to the USA to do business. Why pay taxes in another country when you can incorporate in the USA and conduct business here. If you need any examples of this check out Hong Kong, Singapore and Dubai.
2) More employment - Since businesses will no longer be burdened with taxes they can focus on hiring more employees to grow their business.
3) More efficient allocation of resources - Businesses always focus on the bottom line. When you tax a business they do what makes sense so they chase the tax credits, deductions etc or just move offshore. When they have no taxes they seek to achieve whatever achieves the greatest economic efficiencies.
but it doesn't make any difference to me. All my businesses are incorporated offshore. My businesses pay 0% tax. I only get taxed when I withdraw a salary or take a wage. However, If I take no salary or wage then I pay absolutely 0% taxes, since I made no income. However, my businesses offshore could make millions in profit and I would not pay a dime in taxes. Ever wonder how the rich don't pay taxes? They own businesses that are made to take advantage of offshore entities. Did I mention this is all legal?
I have to concur with killer2021, we should slash corporate taxes to 0%. Bring investment and jobs into the U.S. and get our economy rolling with domestic consumption and exports. A weaker dollar would help deter imports and promote exports and more jobs, as well.
The U.S. actually has one of the most unattractive tax environments in the world, this deters both domestic investment as well as FDI.
Well assuming you have a decent business knowledge (which you don't, obviously) you would know several things happen when you don't tax business.
ummm, ok. Have a US licensed and based business that has been profitable for 20 years. Yeah, clearly I am clueless.
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1) Flight of capital into the USA- When there are no taxes, businesses flock to the USA to do business. Why pay taxes in another country when you can incorporate in the USA and conduct business here. If you need any examples of this check out Hong Kong, Singapore and Dubai.
THESE are your ideals for US? Slavery, Pirates, and Fascism. Great. Please keep your business models out of US.
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2) More employment - Since businesses will no longer be burdened with taxes they can focus on hiring more employees to grow their business.
Ok, Now you are showing your cluelessness. The expensive taxes and fees on the US business model regarding employment are the employment based taxes. SS matching, workers comp, unemployment. All these go up proportionally if you try to increases your workers' wages. The actual business taxes have no relationship to employment or employees.
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3) More efficient allocation of resources - Businesses always focus on the bottom line. When you tax a business they do what makes sense so they chase the tax credits, deductions etc or just move offshore. When they have no taxes they seek to achieve whatever achieves the greatest economic efficiencies.
Crooks do what crooks do. Let the crooks go and tax them when they ship their crap back (again, tariffs)
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but it doesn't make any difference to me. All my businesses are incorporated offshore. My businesses pay 0% tax. I only get taxed when I withdraw a salary or take a wage. However, If I take no salary or wage then I pay absolutely 0% taxes, since I made no income. However, my businesses offshore could make millions in profit and I would not pay a dime in taxes. Ever wonder how the rich don't pay taxes? They own businesses that are made to take advantage of offshore entities. Did I mention this is all legal?
umm, yeah, right. "if" you make millions. Write and tell me how that is going.
And all this to avoid taxation on your non-profitable "business" endeavors. It is not an issue of illegal, but the conversation does seem to be reaching a level of just plain stupid.
I'm not in favor of tariffs. I'm in favor of applying the concept that, if a corporation doesn't pay taxes here, it doesn't have constitutional rights here, like free speech. Why should a corporation who chooses to do these things be able to exercise its free speech "rights" with election and lobbying contributions?
I agree. If a corporation wants the benefits of American registration and licensing it should be bound to support this country as well. Companies have been doing this for far too long to avoid paying their employees decent wage and shouldering their share of the tax burden. To me this type of emigration is equal to treason.
I agree. If a corporation wants the benefits of American registration and licensing it should be bound to support this country as well. Companies have been doing this for far too long to avoid paying their employees decent wage and shouldering their share of the tax burden. To me this type of emigration is equal to treason.
Agreed. So i should pay 50% but a corporation 2.5%. WTF?
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