Overlooked GOP Budget Provision Would Fuel Offshoring With New Tax Incentives

When is enough, enough? Seriously!

In GOP Representative Paul Ryan’s latest budget proposal, called by Romney as “marvelous”, is a little nugget that opens the floodgates of job loss still wider yet.

A PERNICIOUS PROVISION

Among the most pernicious provisions of Ryan’s tax breaks is a plan to halt the authority of the U.S. government to tax the foreign profits of U.S. corporations once they are brought back into the country, notes tax expert David Cay Johnston, author of Free Lunch: How the Wealthiest Americans Enrich Themselves at Government Expense and Stick You With The Bill. Known in right-wing parlance as “extra-territoriality,” this proposal would be disastrous to both U.S. jobs and tax revenues.

“Ryan’s plan would insure that any profits created offshore by U.S. corporations would never be taxed by the U.S. government,” explains Johnston, who won the 2001 Pulitzer Prize for his work as The New York Times' tax reporter. “This would create a tremendous incentive to move more and more U.S. jobs overseas to escape taxes on the profits that foreign workers produce for them,” Johnston says.

Wow! To get away with that a Representative must be from a very affluent district which doesn’t have to worry about job losses. Right?

In recent years, Ryan’s congressional district has been hollowed out by the loss of major employers like Delco in Oak Creek (3,800 jobs, mostly going to Mexico), Chrysler in Kenosha (850 jobs sent to Mexico with the help of auto industry “bailout” funds), and General Motors in Janesville (a plant closing wiped out 2,800 jobs directly and another 3,000 jobs in nearby supplier plants).

Overlooked GOP Budget Provision Would Fuel Offshoring With New Tax Incentives

Huh! Guess I was wrong on that one!

Here we live in a nation where one can make a legit claim that our “true” unemployment rate is over 40%...

CNN: The 86 million invisible unemployed

As Michael Rivero from www.whatreallyhappened.com calculated:

Now, pay attention class; the US has admitted there are 86 million "invisible" unemployed in the US (only they did not stay invisible as the government hoped because the alternative media kept pointing them out). The US government admits to there being 12.5 million "visible" unemployed, which together with the invisible means 94.5 million Americans are available to work but do not have a job. Total US population is 330 million. But 24% of those are young people not eligible to work. And 13 percent are retired. So the total population of available workers in the United States is 100% - (24% + 13%) = 63% of 330 million people, or 207 million workers. And with 94.5 million workers not working, the true jobless rate in the US right now is 45%, not the 8% the media keeps propagandizing you about.

whatreallyhappened.com...

We also know that corporations are hoarding cash at a shocking rate…

Corporations have a higher share of cash on their balance sheets than at any time in nearly half a century, as businesses build up buffers rather than invest in new plants or hiring.

WSJ: Companies Shun Investment, Hoard Cash

So, in Bizzaro World, the answer to staggeringly high unemployment and tax revenue losses is to encourage corporations to move jobs overseas and dodge tax liability? Hmmm, that should work…not!

This strikes me as so wrong it makes me wonder if our political leaders have any clue whatsoever. Don’t whiz down my back and tell me it’s raining!

What do you think?

There is a bigger issue that is going to push and keep funds offshore but here is the deal look up the FACTA a little known law just passed that penalizes Americans who bank offshore.

On the surface sounds great right? No it doesn't because there are thousands if not millions of Ameircans who live and work abroad who this will effect.

If will also effect offshore investing as well.

UBS, and other Foreign Banks are turning away millions right now just because of FACTA they do not want to deal with the headache.

i think we're being sold out by our elected officials.

they smile and wave and tell everyone it's okay, meanwhile they're selling our today's and tomorrows to the highest bidder. it will fall, have no question about that because it only works when most people are asleep. wake more and more up by taking their food, shelter and medicine away and it's game over.

What are they going to do when the tax revenues stop coming in, and people stop paying their bills, and the fed has to pull its army back from overseas, and default of the fed gov debt, causing the stock market to collapse?

The greedy rich bstrds will find out how screwed they are.

Time to end all income tax, and shut down all government functions except enforcement of federal laws against things like fraud, protection of U.S. borders.

Let the fed res go broke. The average American no longer has anything to lose. Stock up on ammo and supplies.

What will the rich do when their fortunes disappear along with the fed?