Gang of Six Proposal Encourages Corporations to Move Offshore

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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.

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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 common sense!

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.”

I am giving this thread a bump up because I believe it is important for people to know exactly what our politicians are doing. These policies of tax cuts for businesses to produce/expand overseas would not be a surprise had it come solely from Republicans but these are supposed Democrats creating them as well.

These policies will do absolutely nothing to help create jobs here but if the plan is to produce more cheap labor at the expense of American jobs then I would give this plan an A+.

They do this as they are also somehow able to get those who will lose the few jobs left to cheer it on. Not even being sly about it anymore and that says a hell of a lot.Gotta wonder if they are not like the folks who trash the place when it goes into foreclosure? All I can see is another empire goin' down as folks worry about what's in poor folks pee. And they are making poor folk like there is gonna be a market for us so they are getting us used to pissing ourselves on command.
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I have a dream. Some day Americans will start paying attention to what is going on and learn how to boycott big corporations that are damaging our economy. Americans will stop being manipulated by the two party system and see past the smoke and mirrors. They will actually see how broken this style of government is. They will pay attention to what the politicians are doing and not listen to their spin.

i have a dream to that some day people will realize that income derived offshore is not taxable here in the us.

thats like me saying california has the right to tax income made in new york.

any businessman with half a brain knows that no business will ever bring money back into this country when the government and states takes 50 percent of it.

Just a quick thought before it gets lost from reading too much past the OP's thread: business entities that are "too big to fail/fall" should move their corporations offshore and allow smaller businesses here in America to try providing jobs to its citizens. Of course, the "logical" goal should be to cut spending and lower taxes at the same time.