Tuesday, January 11, 2011

Off-shoring and Loopholes

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I don't have a problem with the wealthy--in fact, I wouldn't mind being a part of that 1%. The wealthy are the ones who create jobs and pay a heck of a lot of taxes. The top 1% pay 38% of the taxes with the top 5% paying 59% of all taxes. The rest of us are hired by them to perform a service; some of us live off of welfare paid for by them and other working stiffs. Taxes need to be fair to all.

What I do have a problem with is the government allowing all this extreme off-shoring of jobs and manufacturing to other countries thus building up their economies to the detriment of ours. They have allowed loopholes in our system to off-shore money allowing for the wealthy to reduce their taxes. Senator Kent Conrad of ND said, “We’re allowing $100 billion a year to be lost to offshore tax havens, another $50 billion to abuse of tax shelters” Conrad said. “That can’t be allowed to continue.”

According to The Guardian, one third of the entire world's wealth is held offshore, with 80 percent of international banking transactions occurring offshore, in order to avoid taxes and regulations.

Speaking of jobs, HubPages says, "For those that are reaping the benefits of outsourcing, I have a word to the wise; you yourself will likely be outsourced as well. It is about cost, not quality and skill; if you’re not cheaper, the outsourcing organization will move to one that is.

The short-term benefits of outsourcing can be great but will probably occur at a long-term cost. As a society, we need to start rewarding the innovative thinkers and the like, not the profit seekers who are everywhere."

I agree with HubPages. We have given business breaks (except for high taxes) as our country has quickly become second rate with an accumulated $14 trillion worth of debt as the wealthy, along with business, seek to find ways to "hide" their money thus retaining more of it to the detriment of America. I can understand why they are off-shoring as Union benefits and their demands are out of sight. However, we must bring jobs back to America. Innovation is part of our history and what made us so great. Make it lucrative for corporations to stay in the U.S.

If this new Congress can do anything to help this country, it would be to end the loopholes, stop the greedy Unions and keep manufacturing and jobs at home.

5 comments:

Anonymous said...

We have the highest corporate tax rate in the world. Therefore, it would be irresponsible for the Board of Directors of any corporation not to outsource any and all products. Until we make a business friendly environment, then that is just the way it is going to be. The shareholders of any corporation will cry about the outsourcing, but then not realize that their dividend depends upon that same act.

http://www.unitedliberty.org/articles/7539-united-states-now-has-the-highest-corporate-income-tax

Anonymous said...

Please. Posting a link to a right-wing pro-business webpage that lists a trumped-up U.S corporate tax rate is hardly legitimate support. Did they include sales tax on their lattes in that number as well? I think so.

The corporate tax rate (34% last time I looked at the tax code) is hardly indicative of what corporations actually pay in taxes. If you are at all familiar with corporate tax (and I am) you know that there are deductions and loopholes galore. Corporations CONTROL the legislative body that creates the tax code. If they weren't happy with it, it would change. Smarten up.

Anonymous said...

As lynn said, the wealthy are paying the brunt of the tax. Also, as she said, we need to make it mroe attractive for corporations. They do pay a big tax.

Anonymous said...

So then, its ok to hide omoney from the govt? Isn't that the same as stealing?

Anonymous said...

It certainly seems that these corporations are part of the problem. Their lobbies control US politics. The entire system is corrupt.