Image and video hosting by TinyPic

Saturday, July 23, 2011

They want to end America

(Added note: Most of you probably want to read about the Norway events. There's a lot to be said about that -- but this story is even more important.)

The Republican "Gang of Six" is making a demand that will actually increase the deficit -- enormously. Trying to sell this proposal as a debt-reduction measure is like calling a proposal to lace breakfast cereal with arsenic the "Healthy Children Initiative."

And I see no indication that Obama will fight this measure.

To put the matter very simply: The Republican plan will make it even more enticing for American corporations to outsource jobs.

Actually, "enticing" may be the wrong word. The new tax plan will make it economically mandatory to move jobs outside this country.
They want to give billions of dollars in tax savings to the richest corporations in the US, and encourage them to move jobs overseas. That is the logical result of changing to a system of taxing income only if it is “earned” in the US. This is called a “territorial taxation” system. Currently we have a hybrid system. We tax income from whatever source, but we give a credit for foreign taxes on the income, and we don’t tax any of the money until it is repatriated.

The territorial tax will delight these monster corporations that have accumulated billions of untaxed profits overseas. They can invest the money off shore to create any new business they might want to enter, in any country they might like, and with little effort completely avoid US taxation. This removes any reason for any corporation to manufacture in the US for export.
The system in place now already encourages American firms to outsource jobs. On February 16, 2008, at a gathering in Wisconsin, Obama spoke against these tax loopholes:
But I won’t stand here and tell you that I’m going to accept an America where we do nothing to help our workers who have lost jobs and opportunities. We are going to end those tax breaks for companies that ship our jobs overseas when I am president.
This was a reference to something called the "deferral clause" in the U.S. tax code. Now he's going to increase the very tax breaks he once denounced.

To comprehend how the deferral clause works, you must understand that other countries tend to have lower corporate tax rates and higher personal income tax rates. A company in the United States pays 35 percent. An American company operating in (say) the Czech Republic pays taxes to that government at the lower Czech rate, which is twenty-something percent. If those overseas profits return home, they are taxed at the American rate minus the amount already paid to the Czechs. This system encourages corporations to keep the money overseas as long as possible.

That's how it works now. The Gang of Six wants to change the situation. They want none of the tax money to go to Uncle Sam.

The deferral clause is one of the loopholes which General Electric used when it paid no U.S. taxes at all in 2010. In 1955, corporations paid nearly a third of Uncle Sam’s annual operating budget; today, that figure has shrunk to well under seven percent. At least once every seven years, more than half of the corporations in the United States pay zero taxes.

Expect that percentage to go up. Way up.

The 35 percent statutory corporate tax rate (the only number usually mentioned by neo-liberals who seek to have corporate taxes reduced or eliminated) differs from the effective rate, the amount actually paid. The effective rate, 26.5% under Reagan, dropped to 17.2% under George W. Bush and has not appreciably risen during the Obama years.

Foreign governments collect twice as much corporate tax as we do when those revenues are computed as a percentage of Gross Domestic Product.

Well, guess what? If the Republicans get their way -- and they will -- America will collect far less in corporate taxes. When your job is outsourced by an American company, the tax paid to a foreign government will be the only tax paid.

The deficit reduction plan will, in effect, greatly increase the deficit. Not only will it eliminate much corporate tax revenue, it will put many Americans out of work.

I could understand using tax breaks to encourage corporations to invest in America. Alas, the libertarians and the Tea Partiers want to do the exact opposite: They want to encourage outsourcing.

They want to destroy American jobs. Your job.

If you look up the term "territorial tax" in Google News, you'll see that the mainstream media has largely ignored this issue. This is how America ends: With the silent passage of a job-killer proposal that nobody even knows is there.
Is Anders Behring Breivik, the alleged perpetrator of yesterday's gun-massacre and bombing in Norway, the same person as Fjordman?

'Fjordman' is the name used by a blog project which pushes the Zionist meme of 'Eurabia' in Norway - a version of 'Eurostan'.

I predict that the question 'Is Breivik Fjordman?' will soon become very hard to answer, and various bits of 'evidence' will arise that suggest either 'yes' or 'no'.

If so, that would suggest that whoever owns the Fjordman project may also have 'owned' Breivik.

This has a very 'Lee Harvey' feel about it.

The recently posted photo of Breivik in a masonic apron - photoshopped? Or more than likely, 'genuine', and done with a view to influencing opinion after the event. That'll get the conshpirashists going! A masonic apron - ooh-er!

But I tell you something - if that guy has been key in the 'Fjordman' project, he doesn't seem the sort of guy who'd invest a lot of meaning into playing dress-up down at the Oslo lodge, and publish a photo of himself in an apron looking so proud, like a grinning idiot.

Only this week, a few days before the attacks, the Norwegian government has received Zionazi flak for being a puppet of Palestinian Muslims - and, well, you know the sort of thing Zionazis say.

That allegation is of course bullshit. The Norwegian State and the Norwegian Labour Party have been strongly supportive of Zionism for many generations. (Help with heavy water for nukes; Norwegian forces are in Afghanistan and Libya too). Sure, they've been pals with the Abbas faction of the PLO (a guy most deserving to be called a Quisling), but so what? That's probably all on Zionist orders.

But that doesn't mean it doesn't anger Zionists too! That's the kind of insane crap we're talking about nowadays! All racists are fucking crazy!

Abbas was in Norway a few days ago... This was part of preparations for the UN's 'Palestinian' show in September.

The Norwegian govt is a local show to cover for the national 'oil fund'. Huge amounts of money go into this fund, but all the local 'experts say ooh, we don't want to suffer from 'Dutch disease', and so practically none gets invested inside the country. It's all hush-hush, and few ask where the money actually is and who controls it. And this ain't peanuts - we're talking the second biggest sovereign-wealth fund in the world, bigger than the Saudi one! (The biggest is from the UAE).

Recently there's been a bit of hoo-hah about the fund divesting from a few Jewish settlement-involved projects in territories occupied by Zionists in 1967.

Abbas and the Zionists aren't at war...but nonetheless there are 'lines' where these friends confront each other and occasionally have minor skirmishes. I'm talking financial stuff here. These can assume more importance than might otherwise be thought, getting wrapped in all sorts of 'honour' issues. Never mind that Abbas's tongue is high up inside Zionist butt.

Then in come the crazy propagandists. whose trade is big-time influence. Extremely cocky. Norway, you know? Totally owned by Arab Muslims with an anti-Zionist agenda. Right? Crazy talk, of course - but it's what some bits of the Zionist propaganda machine have been shouting about...including in the past week.

One thing's for certain - there will now be more 'security' in Oslo...with a little bit of US and Israeli help...
Barack Obama the President doesn't do what Barack Obama the candidate promised?

Who knew?

PS: Those cheese eating surrender monkeys with all their socialist programs built the new steam generators for the Three Mile Island nuclear power station because American industry couldn't. When they were moved through Alabama county PA the residents gazed in slack jawed wonder then continued to support the party destroying their way of life.
Even though I don't think you're wrong about this, I really do hope you are.

I come here for the good analysis, which usually reveals the doom and gloom that is being fostered, but G*d d*amn, Cannon, this is decimation and obliteration.

We're moving to Canada where they still allow access to your site.

...and F*ck Atrios.
Government assists big business today in a very different way from how it did so in the previous big Depression.

Cutting state expenditure in time of Depression can only mean running down the economy, effectively terminally, in the area pertaining to the state in question. It's not just the US that's finished - it's the West that's finished.

Whatever wealth is left, hoik it out of the country. Hoik it out of the treasury too. At an accelerating pace. As increasingly many are recognising (passively), this is akin to what was done in the ex-USSR in the early 1990s. I try not to overestimate the awareness of the majority of the population, but a lot of people must surely agree that this is what's going on, even in the TV-heavy US.

They certainly do in Iceland. And they feel there's not much they can do about it. The spectacle that one Icelander witnessed, of the rich scumbags in their private jets whooshing out of the country over her head when the country went bankrupt, sticks in the mind.

Meanwhile in high-tax Norway for the past few decades, the government has collected billions in oil revenue but has refused to include the money in the official state budget. A state is just a tool for big business and will be used in the way the controllers of big business think best.

The Norwegian state's role in building up money in the oil fund is the kind of thing that 'loyal' uncritical Norwegians (i.e. the big majority in that very sleepwalky country) nod their heads about when you mention it, but don't really like to think about too much, for fear of where it might lead. Party politics is a sideshow, a distraction, a heap of irrelevant dogshit, compared to this.

The oil fund is almost exclusively invested abroad. Cf. Saudi, the UAE, etc. Recently they've rebranded it as a 'pension fund' (the Government Pension Fund - Global, despite its having nothing whatsoever to do with pensions. Subtle, eh?
So, in the "glory days" of the 50's, corporations' taxes comprised 5 times the part of our budget as they do today? I thought conservatives were way into how life was in the 50's! And now that corporations are ruled to be "people" they can use all that extra money to influence elections, and are getting politicians in who are going to reward them for moving jobs overseas! One question....when no one has a job anymore, or are juggling several low-paying jobs, who is going to buy all their goods and services?
Tell me this post is parody. I love your site and really missed it when it was gone, but...
You can't whine for years that we need to raise taxes and then immediately accuse Republicans of forcing companies to "go Galt" or move overseas if they seem ready to compromise on raising taxes.
Liberals aren't supposed to believe that's what will happen. Businesses are supposed to be happy to contribute revenue to help the country.
An Alternative to Capitalism (which we need here in the USA)

Several decades ago, Margaret Thatcher claimed: "There is no alternative". She was referring to capitalism. Today, this negative attitude still persists.

I would like to offer an alternative to capitalism for the American people to consider. Please click on the following link. It will take you to an essay titled: "Home of the Brave?" which was published by the Athenaeum Library of Philosophy:

John Steinsvold

Perhaps in time the so-called dark ages will be thought of as including our own.
--Georg C. Lichtenberg
Post a Comment

<< Home

This page is 

powered by Blogger. 

Isn't yours?

Image and video hosting by TinyPic

Image and video hosting by TinyPic