May 8, 2009

Well, it's been a bit of time since my posting.. work has been busy but that's a good problem, right?

So, what is bugging me today or over the past week? Sit down, have a drink and think about a few of these things...

The Obama administration wants to tax corporate profits earned over seas by an American company. So, at first glance you would say, ok, so what is the problem, it's a US company and they make money and they should pay US taxes. Wrong.. Yes, it's a US company that is in most effects, a global company that happens to reside or "domicile" in the US. (keep this statement in mind as you read this).

Take company X. they make widgets and sell them around the world. They have a factory in the US, one in Spain, and another in China. They have corporate office in 5 countries. Global in reach. They sell those widgets in all these countries and pay the country taxes. The money or profits stay in the country, such as Spain, and do not go back to the US. The funds are used to expand the business in that country, employ Spanish workers, etc. You get the picture.

So, tell me, why would a global company bring profits or funds back into the US? Wouldn't they use that money to expand the overseas markets? Aren't they just residing in the US with a corporate headquarters? Isn't the money being spent and reinvested in the country of origin?

The answers to that is YES, of course. If there is no need to bring money into the US they why would they? If there is a need, then rightfully, the company would pay US taxes on the money repatriated.

So, here is the rub and remember my previous statement about happening to domicile in the US... Obama wants to TAX overseas coroprate profit no matter where it is earned or spent!!! So, let's say Spain (don't ask me why I picked them. It's just an example) is where the company is earning money at a corporate tax rate of, let's say, 20%. The company does it's corporate duty, makes money, hires, return for investors, etc. but Obama want to take another 15% (the US rate is 35%) to get their share! So, you have to pay Spanish taxes AND US taxes even though that companies division is not in the US.

Listen closely... many people will say " so, they are a US company and should pay US taxes, regardless of where they make their money".. Ok, let's go with that premise for a second.. given it's "headquarters" thing and that quite frankly, the US doesn't actually "manufacture" much, then why wouldn't company X just move it's headquarters to another business friendly country with a low tax rate and that doesn't double tax profits??

Get my drift... this stupid act or law may actually cause the exodus of corporations from the US to more tax friendly environments..... if that happens, then you do the math!!

I have a bit of catching up to do so now onto a few other topics and rants...

Polar bears.. have you seen the news? they are all drowning!!! OMG!! DO SOMETHING... IT'S ALL GLOBAL WARMING!! Of course, those headlines drown out the other articles that say no such thing. The bears are doing fine. So with those headlines, we, the US, are going to impose total country green house emission standards because of the polar bear. STUPID. Just as stupid was Obama's plan to bring carbon dioxide and green house gas emissions under the FDA or some other such organization. Very sneaky way to kill business and over react...

Listen, is the globe warming? Maybe, the science is not perfect. Let's say I concede that it is warming.. are people causing it? NO. It's proven science that warming and cooling is a cycle of the world. Are we that conceded to think we can effect this? Heck, there was an article recently on the solar cycle and how it is going into a slow solar spot period and this may result in a mini ice age...

So, what will we do? Ruin our economy, fall on our sword, along with the EU while China and India and many 3rd world nation put out tons and tons of pollution and grow their economies. Wake up folks.. we keep doing this and we'll ruin ourselves... we won't have to worry about another war or country to do that for us!!

And on to Nancy.. the liar, er... speaker of the house. Talk about political expediency and stretching the truth..." I didn't know they were actually doing to DO it".. sounds like " I did not have sexy with that woman"... Our political system at work. I'm telling you folks.. TERM LIMITS.

and poor Miss California.. she expresses her 0pinion and is crucified by the media and byt the other wackos.. now riddle me this batman.. if it had been the other way around and we criticized the gays, do you think there would be a complete uproar from the media, et al? you see my point.

BTW folk, all of what I'm writing..... YOU ALLOWED IT.

Think about that last statement and get back to me..or not

my next rant... back to the economy..