I should point out however that I think a better way to help US workers is to attract capital investment TO the US -- and neither the current policy of international free trade nor Obama's "soakem' till they become patriots" policy will do that.
I'd love a study that would show what would happen if the capital being invested overseas were instead invested here. The best way to encourage that is to eliminate the income tax and go to a modest but flat ad valorem consumption tax -- on all foreign products. - Bob > -----Original Message----- > From: [email protected] [mailto:[email protected]] On > Behalf Of Bob Calco > Sent: Tuesday, June 09, 2009 11:28 AM > To: 'ProFox Email List' > Subject: [OT] Obama Tells U.S. Businesses To Drop Dead > > http://bit.ly/ESsgS > > - - - > June 8 (Bloomberg) -- I've finally figured out the Obama economic > strategy. > President Barack Obama and his team have been having so much fun > wielding > dictatorial power while rescuing "failed" firms, that they have > developed a > scheme to gain the same power over every business. The plan is to enact > policies that are so anticompetitive that every firm needs a bailout. > > Once that happens, their new pay czar Kenneth Feinberg can set the wage > for > everybody and Rahm Emanuel can stack the boards of all of our companies > with > his political cronies. > > I know, it sounds like an exaggeration. But look at it this way. If > there > were a power ranking of U.S. companies, like the ones compiled by > football > writers for National Football League teams, Microsoft would surely be > first > or second to Google. But last week, Microsoft Chief Executive Officer > Steve > Ballmer came to Washington to announce what Microsoft would do if > Obama's > multinational tax policy is enacted. > > ... > > Their conclusion was striking. The authors found that "10 percent > greater > foreign capital investment is associated with 2.2 percent greater > domestic > investment, and that 10 percent greater foreign employee compensation > is > associated with 4 percent greater domestic employee compensation. > Changes in > foreign and domestic sales, assets, and numbers of employees are > likewise > positively associated; the evidence also indicates that greater foreign > investment is associated with additional domestic exports and R&D > spending." > > > So when firms expand their operations abroad, taking advantage of the > lower > foreign tax rates, it helps their workers in the U.S. Higher sales > abroad > (surprise, surprise) are good for domestic workers. > > It is worth noting that this study, which is confirmed by a boatload of > evidence elsewhere, was coauthored by the same James Hines who recently > wrote a sweeping review of international tax policy with Obama's top > economist, Larry Summers. Summers has to know what the literature says. > > ... > > So the question is, why does Obama advocate a policy that so flies in > the > face of everything that economists have learned? How could Obama > possibly > say, as he did last month, that he wants "to see our companies remain > the > most competitive in the world. But the way to make sure that happens is > not > to reward our companies for moving jobs off our shores or transferring > profits to overseas tax havens?" Further, how could Treasury Secretary > Tim > Geithner call a practice that top scholarship has shown increases wages > and > employment in the U.S. "indefensible?" > > I have to admit I am at a loss. Maybe it is good politics to bash > American > corporations, and Obama isn't really serious about making this change > happen. But if the change is enacted, and domestic corporate taxes > aren't > reduced to offset the big tax hike, the result will be a flight from > the > U.S. that rivals in scale the greatest avian arctic migrations. > > If that occurs, the firms that stay in the U.S. will be at such a huge > tax > disadvantage that they will absolutely need a "rescue." > - - - > > People are starting to wise up to the real agenda. Hopefully. > > - Bob > > [excessive quoting removed by server] _______________________________________________ Post Messages to: [email protected] Subscription Maintenance: http://leafe.com/mailman/listinfo/profox OT-free version of this list: http://leafe.com/mailman/listinfo/profoxtech Searchable Archive: http://leafe.com/archives/search/profox This message: http://leafe.com/archives/byMID/profox/[email protected] ** All postings, unless explicitly stated otherwise, are the opinions of the author, and do not constitute legal or medical advice. This statement is added to the messages for those lawyers who are too stupid to see the obvious.
