Theo, I think the point is that the largest Corporations are provided highly favorable (if not profitable) effective tax rates via loopholes & credits, and yet moved jobs out of the US anyway. Contrary to your uninformed assertion about low tax rates in other countries, it's more a function of cost of labor
. India, which has a corporate tax rate of 28%, saw a 118% in jobs from US multinational companies because the average wage is around $11K. Instead of expanding technical jobs in North America, my company built data center Indonesia - which has a corporate tax rate of 41%
and the average wage is $11K (Canadian company with offices in Denver, Ottowa and Calgary). The statistics don't bear out your assertion, Theo.
You can jack down the Corporate tax rate all you want (which, combined with tax credits that pay out taxpayer funds back to these companies, will further spiral up our deficit) - but you're not going to compete from a labor perspective.
So what point did I prove for you, Theo? That not only should we drive down what little revenue we derive from the largest multinational companies (in many cases paying
them tax credits), but additionally depress wages in this country so far as to provide a manufacturing job in Indiana at an Indian cost of labor?
Regardless, I can only conclude that, once again, Yarmony and Theo's defense of Corporate Free Speech is far more a function of a need desire of resurgent GOP political power than it is America's best interests.
Damn - I didn't want to piss on Yarmony's dream of putting good American jobs into the hands of the Chinese. Sorry, Comrade. Maybe you can tell your Chinese workers how much you love & fight for freedom - looks like they won't be able to Google it. What Theo and Yarmony don't understand that those people-corps are going to do with this ruling is lobby like hell to skew legislation to their very narrow advantage, not to business as a whole. In fact, they'll try to push rules that will make it harder
for small business competitors to compete - the HAVE to. It's their duty to shareholders, which likely include foreigners like Saudi investors or <gasp> George Soros
Originally Posted by yarmonymatoid
I have a problem with a big federal government sticking their nose into business they have no right nor relegated power to regulate.
Yarmony, how does this jive with the fact that now Corporations can influence the Federal Government to essentially manipulate your beloved Free Market? How triumphant will you feel when some technology corporation can spend $50,000 to Gale Norton's campaign to get a $1M tax break to put an office on the front range that develops a competitive product to yours? Or they ask Gale to insert legislation that says your software product creates an unfair advantage in the market, knowing you don't have the money to fight it? It's not like that's not happening already.
A few years ago, a coalition of 60 corporations -- including Pfizer, Hewlett-Packard and Altria -- made an expensive wager. They spent $1.6 million in lobbying fees -- a hefty amount even by recent K Street standards -- to persuade Congress to create a special low tax rate that they could apply to earnings from their foreign operations for one year.
The effort faltered at first, but eventually the bet paid off big. In late 2004, President Bush signed into law a bill that reduced the rate to 5 percent, 30 percentage points below the existing levy. More than $300 billion in foreign earnings has since poured into the United States, saving the companies roughly $100 billion in taxes.
Foreign earnings. I.e., tax breaks on profits made off of foreign labor. If you think that Corporations will use this new power to work in the best interests of the Free Market, or Democracy, or the Competitive Spirit, you are indeed naive.
Helio - I would imagine that those statistics led themselves to a particular viewpoint (as most do), but I guess the point is that Theo's painting of corporations as some oppressed tax victim is, at best, ridiculous. And revenue shortfalls, even in the range of $15B annually, have collectively added to the $1.3T annually deficit we've got now.