Actually, I think this one outdoes MOST of the laughable plans announced by the Obama adminstration.
First, Obama promised more transparency in government. He promised change. Then he nominated tax cheat Tim Geithner to be Secretary of the Treasury. Then he nominated Kathleen Sibelius to be the Secretary of Health and Human Services. Then he nominated Ron Sims as the Secretary of Housing and Urban Development. Then he raised taxes on the “top 5%” of the earners in America, bringing the highest tax bracket up to 39.6%.
Today, he’s far outdone himself. Put your drinks down…
He and Tim Geithner have just announced a plan to inject $210 billion into the economy by even more taxes on the corporations in America. How? By overturning one of Bill Clinton’s tax laws that gave a break to companies that made some profit on overseas offices–so long as the money made overseas was re-invested overseas and stayed there. The instant it was brought back to US banks it was subject to taxation.
They’re calling this a loophole, and they say they’ll recoup a lot of money by closing it. It’s supposed to create more jobs, ostensibly by not giving that tax break in any way, shape or form to any corporation–PERIOD. There’s just a few problems with this, not the least of which being that it’s hilarious to see Tim Geithner trying to enforce tax laws when he can’t even follow them.
The fact still remains that it’s still cheaper to hire a group of employees in Bangladesh than it is to hire the same number of people to do the same job in the United States. Making those corporations pay more taxes cannot and will not change that fact. The only way to really, truly encourage companies to keep jobs settled right here at home is to offer incentives–i.e. TAX CUTS FOR WHAT LIBERALS DEEM “THE WEALTHY”–to keep those jobs here. When they’re paying the same amount of taxes on both home and foreign offices, yet it costs twice as much to hire me to do a job as it does to hire Sanji Rosgothra in India (name completely fabricated), where do you think the companies are going to want to go?
I talked to a woman last week who complained that she’d called customer service only to be asked a round of questions she couldn’t understand because of the rep’s heavy Indian accent. In the same breath, this woman said, “boy, I’m so glad Bush isn’t in office anymore, Obama’s gonna fix this mess right up!” I had to hang up quickly because I couldn’t help the hysterical laughter that threatened to escape my throat. Sure, the mess started under Bush, but Obama has only made it worse. Now he’s suggesting that we dump even more taxes on corporations during a damned recession as some kind of twisted cure?
I’ll tell you how this will play out: if Obama gets his wish, and this so-called tax loophole is closed, several businesses will pull up stakes in the US completely and move everything to other countries–countries that are more tax-friendly. Still others will outsource even more jobs to make up for their new losses because of the fact that it’s cheaper to hire people overseas. And whether they stay or they go, prices on everything will go up in reactionary inflation because businesses refuse to eat any losses that they can avoid. That’s not just greed; it’s the free-market system at work.
If this is the start of Obama “spreading the wealth,” then I don’t want to know what the next step is.