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Old 08-31-2011, 07:31 PM
 
Location: NJ
18,665 posts, read 19,896,475 times
Reputation: 7313

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gywnedd:"Labor gets cost of living increases to adjust for this."

LOL; if labor costs increase except for volume at any of our subsidiaries, execs in operations get NO bonus. Their mandate is efficiency gains annually must offset any COL increase. So if you had 60 mil in revenue in 2010, and labor with benes cost you 3mill, and your only revenue change is price increase of 2 mill in 2010, so rev is 62 total, but still 60 pre-price, you get no bonus if labor exceeds 3 mill. You want to give a 2% raise, find a way to decrease manhours required 2%.
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Old 08-31-2011, 08:53 PM
 
Location: The Triad
34,091 posts, read 82,498,922 times
Reputation: 43648
I'm not going back over 8 pages...
but it shouldn't be about taxing the making of the money.

It should be about "encouraging" the actual investing of the money that has been made.
Focus on the retained earnings being held by corporate entities...
and NOT being spent to build factories and buy capital equipment and by that put people (back) to work.
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Old 09-01-2011, 12:31 PM
 
454 posts, read 1,239,183 times
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Quote:
Originally Posted by markg91359 View Post
This is delusional beyond any rational belief.

The part that is left out of the equation when people proffer these grand "tax cut" schemes is the mammoth cut that would have to take place in government spending. With the kind of taxes that are being suggested I'm not sure the federal government could do anything more than pay interest on the national debt. Right there, you'd see the loss of hundreds of thousands of civilian government jobs as well as military jobs.

The next step would be layoffs in the civilian industries that receive government contracts. The aerospace industry would be devastated and you'd have thousands of highly trained engineers looking for work. The work these people do has implications for our national security. We might not be facing a Cold War type threat now, but history has shown that some country always steps into to fill a power vacuum.

I guess we can kiss decent roads and highways good bye. The federal money that goes to maintain our infrastructure would vanish almost overnight. Millions of people in the construction industry--hit hardest by this recession--would find themselves with a pink slip.

There wouldn't be money with a tax cut like that for social security or medicare. So, I guess all the medical facilities that cater to the needs of the elderly would probably have to close--or at least face severe cutbacks. All grocery stores, gas stations, and Walmarts that depend on the elderly for purchases would have to close up or cut way back. More loss of jobs there.

The idea that handing the money back to the people who pay the taxes will compensate for this loss of spending is incorrect. Upper income people pay most taxes in America. Upper income people also have the highest savings rates of any group in this country. A large portion of the money "handed back" will be saved and not spent. Spending on goods and services is what creates jobs in this economy. Do you question that? If that spending is cut than unemployment will increase. Its not rocket science to figure that one out.

Your "cute idea" would take the recession this country is in and make it far worse. Welcome 25% unemployment--and all the social unrest that would bring.
Tax revenue would increase since there would be more investment and consumer spending.

Social Security and medicare are paid for with FICA tax. As more people are employed, more people paying in. SS/medicare crisis would be over.

Also consumer spending is only one portion of what creates jobs. Its also investment and where that investment is made that creates jobs. Consumer spending means nothing if you are buying imported crap from China. Same story for investing, Investing means nothing if you are outsourcing or off shoring. Right now we are discouraging people from investing in the states.

Why invest in the states when China gives you 0% tax/no regulation/cheap labor for doing business there?

So yea, have fun paying for ANYTHING when I can just go to other countries and make more money and just import all my products to the states. I could careless how many people are unemployed or how much they make. At the end of the day, no one gives a crap if my investments/businesses go bust. Its dog eat dog world, my friend.

If USA wants to say, "hey you have to follow all these laws and pay all these taxes." Then I'll say, "Thanks, but no thanks, have a nice day!"
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Old 09-04-2011, 09:56 PM
 
Location: US Empire, Pac NW
5,003 posts, read 12,317,873 times
Reputation: 4125
No, it won't.

Many CEOs have said that the thing that prevents them from making more jobs in the US is the very volatile regulatory environment in the USA. It isn't the labor costs per se, though that does factor into the equation (why pay unskilled folks in the USA $15 / hr plus benefits when you can pay someone in another country $1 / hr for the same tasks?). The biggest issues they see the US having are:

1) A broken education system keeps churning out uneducated idiots who can't follow instructions (Toyota and other car companies have opened plants elsewhere in the world because people in the US in the deep south need picture books for the instructions).

The expand a bit on this one ... Germany knew after WWII that they can't compete on a cost basis with their social programs and high cost, so they invested in their education system and most Germans now have a highly skilled workforce and they get paid well by climbing the sophistication ladder. Focus on quality and sophistication and beat your competition by those means because you cannot compete on price.

CEOs also point out that there's an education bubble at the same time ... if you want to work on a modern line working machines, you need a different education than a four year university. You need trade school. Not a 4 year "I don't know what I want to do with my life" degree. Figure out what you want to do and don't be afraid to take technically or physically demanding jobs, that's where the growth is.

2) Healthcare costs. They're skyrocketing. But special interests prevent the current high-cost system from reforming. Unhealthy cultural lifestyles also play a role in this.

3) Regulatory churn. It isn't so much the regulation, but the constant shifting of regulations that the administration has foisted on everyone. Sometimes there's overreach (see most recent coal emission standards being redacted). Just figure out what you want to do and enact it.
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Old 09-05-2011, 06:19 PM
 
3,210 posts, read 4,594,395 times
Reputation: 4314
It might help somewhat, but it's like putting a badaid on a bulletwound. While I generally agree with the small government vision Rick Perry envisions, the fact is labor is the biggest driver of job placement. The 1945 to 1970 era of high paying low skill jobs the US had going was due to the rest of the industrialized world being bombed out. Once the third world got in on the party it was lights out. Adam Smith himself predicted a truly free market, free trade world would flatten gloabl incomes. Our incomes would come down and the third world's would come up until equilibrium is reached.

No one would pay someone $20/hr what someone would do for $10/hr. That's just basic math. However, that's what's happening with global economics and no politican can stop that.
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