That’s right, half the idea makes sense, but he just fouls it up on the other side. American companies have been off-shoring jobs for years, taking advantage of cheap, child slave labor in the name of globalization. Not only have companies benefited from shedding the cost of an American worker (decent wages, insurance, taxes, etc.), but the executives for these companies have made record salaries to go along with the record profits.
Record profits you say? Well, that’s good for investor right? Yes it is, but if the investor no longer has a job, they won’t be buying any of that rising stock. Here’s what Obama plans to do about it. Currently, if an American company makes a profit overseas, that money is only taxable if it makes its way back to America. As long as it stays offshore somewhere, the 35% tax rate doesn’t kick in for the corporation. Obama plans to eliminate that little loophole in an effort to make offshoring at least, a little less lucrative. It’s a step in the right direction, but just when you thought the messiah could actually do something that made sense, he comes up with his budget proposal, that will pound these same corporations with tax hikes. Does that make any sense? Isn’t the idea to entice companies back to the United States, or at the least punish the greedy, corrupt ones?
What do you think will be the consequences of this buffoonery? Maybe these companies will just move all their operations to another country and not be American at all? Do you think that might happen?
Of course, if you’re president of the world, that’s tantamount to moving to the next block.