Posts Tagged ‘defer’

Microsoft CEO Says Obama Tax Plan Will Result In Companies Leaving USA

June 6, 2009

The imperial presidency has issued a new edict to force jobs out of the United States.

What happens if you make the cost of doing business too expensive in a given area?  Either businesses go out of business or they leave for greener pastures.

And, under Obama, the “greener pastures” are anywhere but America.

Tax plan would send jobs offshore, Ballmer says

Microsoft CEO Steve Ballmer said the software company would move some employees offshore if Congress enacts President Obama’s plans to impose higher taxes on U.S. companies’ foreign profits.

Microsoft CEO Steve Ballmer said the software company would move some employees offshore if Congress enacts President Obama’s plans to impose higher taxes on U.S. companies’ foreign profits.

“It makes U.S. jobs more expensive,” Ballmer said Wednesday. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.”

Obama on May 4 proposed outlawing or restricting about $190 billion in tax breaks for offshore companies over the next decade. Such business groups as the National Foreign Trade Council, the U.S. Chamber of Commerce and the Business Roundtable have denounced the proposed overhaul.

U.S. tax rules let companies defer paying corporate rates as high as 35 percent on most types of foreign profits as long as that money remains invested overseas. Obama says he wants to end such incentives to keep foreign profits tax-deferred so that companies would invest them in the U.S.

It’s kind of like New York taxing cigarettes to $11 per pack.  Liberals THINK they will A) pay for their liberal social programs and B) get people to stop smoking.  But they are not living in the real world because what will actually happen is C) people will begin to buy black market cigarettes.

The infamous luxury tax is a great example:

Starting in 1991, Washington levied a 10% luxury tax on cars valued above $30,000, boats above $100,000, jewelry and furs above $10,000 and private planes above $250,000. Democrats like Ted Kennedy and then-Senate Majority Leader George Mitchell crowed publicly about how the rich would finally be paying their fair share and privately about convincing President George H.W. Bush to renounce his “no new taxes” pledge.

But it wasn’t long before even these die-hard class warriors noticed they’d badly missed their mark. The taxes took in $97 million less in their first year than had been projected — for the simple reason that people were buying a lot fewer of these goods. Boat building, a key industry in Messrs. Mitchell and Kennedy’s home states of Maine and Massachusetts, was particularly hard hit. Yacht retailers reported a 77% drop in sales that year, while boat builders estimated layoffs at 25,000. With bipartisan support, all but the car tax was repealed in 1993, and in 1996 Congress voted to phase that out too. January 1 was disappearance day.

But liberals have to learn the same basic lesson over and over again (which is another way of saying liberals never learn).

Only a fool thinks you get more of something by taxing it.  Only a fool thinks that people won’t change their behavior in order to avoid paying higher taxes.

Which is another way of saying liberals are fools.

Income tax revenues should be a frightening predictor of the future.  Compared to the 2007/2008 average, individual tax revenues were down 40%, and corporate tax revenues were down a stunning 67%! And while these numbers obviously reflect the poor economy, they are also a harbinger of tax sheltering to come as people try every trick to avoid paying taxes that everyone knows will go up and up (just like the taxes on cigarettes).   Obama and the Democrats are going to have to raise taxes across the board in an increasingly desperate attempt to monetize the massive budget gap caused by their massive spending.

And one of those “tricks” will be to simply leave the country to get away from Obama and his frankly stupid policies.

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