posted on Jul, 20 2011 @ 10:15 PM
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. As soon as possible, the company simply moves production off shore, and
uses tricks to make the profits in some low tax country. Jobs leave, exports drop, and so do tax revenues.
The rich benefit from higher stock prices as the profits of their pet corporations rise,. When they sell off the stock, they only pay at the low
capital gains tax rates.
This is a brilliant idea! As any business savvy person knows eliminating taxes on production outside of the country will only encourage large
multinational businesses to produce more in our country thus giving us more jobs! Sheesh how can those stupid workers not understand that, it is
Cuts to Social Security, Medicare, and Medicaid? Check. Hell Obama is the real big fan of this measure. Mitch McConnell was just going to allow Obama
to raise the debt ceiling without making any cuts now but he said no. Obama sent that legislation back to be fixed up by Harry Reid who added large
cuts to it which included cuts to Social Security, Medicare, and Medicaid. Surprise! It turns out McConnell is more left-wing than Obama.
Now we have the Gang of Six, 3 Democrats and 3 Republicans, proposing cuts to these programs without any real tax increases and it actually cuts taxes
on corporations who produce overseas. The funny thing about this, not really ‘ha-ha funny’, is that the 3 Democrats that have helped draft this
new legislation will not be participating in the 2012 Senate Elections. Kent Conrad (D-ND) is retiring while Dick Durbin (D-IL) and Mark Warner (D-VA)
will not be up for re-election next year. This way they will not have to face the wrath of their base at the polls when they go back to their home
states and say, “I sponsored the bill to cut Social Security, Medicare, and Medicaid while eliminating taxes on production overseas and did not
raise taxes on the wealthy. Now vote for me.”