The result of Phase III will be for companies to go offshore. Because Sarbanes-Oxley and other US laws have been applied against foreign companies merely for doing business in the US, they will not even sell their product in the US. Then the irony will be total, and Americans will no longer be able to patronize the companies they used to work for before Present Obama became the maximum leader of the USSSA.

Eliminating this illogical tax combined with a flat income tax or fair tax and we could supercharge our economy to the point that we might actually be able to pay for “some” of the government already committed.

Why do we not have a rational tax system? How else would politicians gain power and control if they don’t have a tax system to punish or reward based on their own self interest and agenda. No sense fooling ourselves… we don’t have a handful of elected Republicans who would be willing to give up that power either.

Scott

That said, double taxing seems mind bogglingly stupid on the face of it but if you think about it, it’s not actually going to change much of anything.

Explain this. Expand on it a little. This sort of argumentation (by assertion) doesn’t work on conservative sites.

If we didn’t tax external profits when they’re brought into the US then US government opens the door to tremendous tax revenue losses.

Note again that these external profits have already been taxed, and note again that America is the only industrialized nation that does this. Do you understand the concepts of competitive advantage and opportunity cost?

You may have read what Skan wrote but I’m not sure you were successful in comprehending it.

And you can’t possibly tell me that you’re against going after rich bastards who evade taxes by putting their money in some swedish account.

Are these people so marinated in pure ideology that they can’t even ponder the unintended consequences of these silly actions?

That’s a rhetorical question, right?

I mean, we know the answer…

BTW, nice write-up Skanderbeg

As it stands now they are as likely to still blame Bush and republicans for everything bad.

This is a consequence of Republican leadership surrendering their ideals and not consistently living the principles that made this the greatest country in history in only 233 years. This is the consequence of American loving Democrats surrender their oath to the constitution for the illusion of power. Elections have consequences and now we all must live with the results our uneducated and uninformed electorate chose.

The good news is that this is destined to fail as history has proved numerous times. The bad news is will be how long our pain will last and what will we rebuild with? Will our leaders stop being scared of public scorn by the leftist media and start speaking the truth to the American people? They cannot yet be stopped from talking but any socialist system knows that suppression of speech and liberty is required to remain in power.

Scott

It is of course an idiotic policy. Overseas earnings are only subject to the taxation when they are repatriated – if the money comes back home to be spent here as dividends or retained earnings. If the money stays overseas to be reinvested there, it is not subject to US taxation.

Our government says to those companies still domiciled here, “Bring your profits home to invest here and we’ll take our cut, or keep them overseas and avoid the tax.”

Stupidity in practice.

Remember now: every internet casino and pharmacy (and there are lots of both) is most likely offshore. A surrounding infrastructure of offshore online credit card processors and associated service businesses have sprung up to service these small businesses, and now these offshore transaction processors are likely to see another spurt of growth as more and more small businesses move major components offshore.

Just google ‘offshore merchant acoount’ or ‘offshore domicile’ to learn just how competitive and active this service sector is.

And it won’t just be the new tax environment causing this! The way the approaching regulatory environment is shaping up, just as many companies will want to get offshore to reduce the cost of compliance and government paperwork as to try to alter their tax exposure.

Note that even for the little guy, these actions are legal and fairly easy. Globalization is indeed for the little guy. More and more little guys will be taking advantage of it in the next couple of years to survive insane tax increases.

November 17, 2008

Layoff announcement

Fellow Business Executives:

As the CFO of this business that employees 140 people, I have resigned myself to the fact that Barrack Obama will be our next President, and that our taxes and government fees will increase in a BIG way.

To compensate for these increases, I figure that our Clients will have to see an increase in our fees to them of about 8%, but since we cannot increase our fees right now due to the dismal state of our economy, we will have to lay off eight of our employees instead. This has really been eating at me for a while, as we believe we are family here and I didn’t know how to choose who will have to go.

So, this is what I did. I strolled through our parking lot and found 8 Obama bumper stickers on our employees’ cars and have decided these folks will be the first to be laid off. I can’t think of a more fair way to approach this problem. These folks wanted change; I gave it to them.

If you have a better idea, let me know.