THEY CUT TAXES AGAIN
Ireland cut its corporate taxes - yet again - to 12%.
2. Social partnership through a unique model of wage determination, involving extensive consultation and agreement among the social partners: The two key elements were wage restraint in return for income tax cuts and ongoing participation in economic decision-making through social partnership committees.
Domestic interest rates plunged as investor confidence grew, triggering a rare occurrence in modern economics: an expansionary fiscal contraction.
3. Foreign investment: Favourable corporate taxation is the main fiscal incentive for foreign direct investment. Ireland offered a preferential tax rate of 10 per cent on corporate profits from export-oriented manufacturing and services.
By the way, when you heard John McCain and Fred Thompson discuss Ireland's success during the 2008 election, know that they got their information from my website (Sawyer2008.com)
(October 6, 2009) With unemployment hovering around 10% and the deficit at a record high of nearly $1.5 Trillion (three times the "unacceptable" standard set by the Bush deficit last fiscal year), what does the Speaker of the House suggest as a cure? The Value Added Tax (VAT). This tax is used in all European Union countries, as well as many other countries.
Simply put, VAT is a charge on various stages of production of goods or commodities. In most countries, VAT is a tax in lieu of a sales tax. The "value added tax" has been criticized because the burden of it relies on personal end-consumers of products and is therefore a regressive tax (the poor pay more, as a percentage of their income, than the rich). Just like the corporate tax on my MAXX SS.
Defenders claim that excising taxation through income is an arbitrary standard, and that the value-added tax is in fact a proportional tax in that people with higher income pay more at the same rate that they consume more. Classes of goods are taxed at different rates. Therefore VAT is at most a flat tax. Baloney ! ! The VAT effects younger people more. Older people are more likely to have big ticket items, cars, refrigerators, houses, etc. already paid for. Younger people aremore likely to be purchasingthese items in the near future.
So, I suppose Nancy Pelosi wants to eliminate the sales tax altogether and impose the VAT tax sort of like the 'fair' flat tax? I can live with that. Ahh, ye of faith. VAT would be assessed - but all of the existing taxes would remain.
In the United States, only Michigan used a form of VAT known as the "Single Business Tax" (SBT) adopted in 1975, as its form of general business taxation. It is the only state in the U.S. to have used a VAT. I owned 17 retail stores in Michigan, and that tax put me out of business. VAT really worked well for MIchigan, didn't it Nancy?
The top corporate tax rate in the United States is 35% - the highest in the world now that Japan in September 2009 finally dropped its top rate to 32%. And with the proposed increase in the Obama tax plan, our top rate will go to 40%. Wow ! ! Is that incentive to attract more business to the USA, or not Mr. Obama?
I had lunch the other day with Harry Reid and Michael Moore and as they handed me the check. they told me that corporations aren't paying their fair share of taxes.
I used to drink that Kool-aid too, but one day I had an epiphany. I had driven 1288 miles to NW Arkansas to buy a 2006 Chevrolet Malibu Maxx SS, a car no longer manufactured (morons), from Steve Smith GM. After I left the dealership, I noticed that I had left my credit card behind. Rushing back, I was surprised to find my Salesman reading a newspaper; the receptionist eating lunch; the Sales Manager picking his nose.
Pres: What's going on here?
Salesman: What do you mean?
Pres: Shouldn't you be passing the hat?
Salesman (dialing security): for what Mr. President?
Pres: To pay the corporate taxes on the car you just sold me.
Salesman (waiving off the security guard): The tax is figured in the sticker price.
Security Guard (holstering his weapon): Everyone, except liberals, knows that.
Then I had an epiphany - Corporations don't pay taxes, people do - their 'fair share' is figured in the price of the products we buy. Huh.
WHAT WOULD I DO?
(No 2,700 page bill needed here, Congressman)
ELIMINATE CORPORATE TAXES ON ALL MANUFACTURING and ALL EXPORTS and ALL "S" CORPS. The taxes we get from our manufacturing amounted to 4% of our budget. 4% !! Our deficits are infinitely higher. And, I just told you corporations don't pay taxes anyway. Corporation taxes are a tax on the people who buy their products - you and me. If Ireland can attract manufacturing with 12% taxes (10% on favored exports), manufacturers will flock to the USA with 0 taxes. No tariff wars, no unfair competition, no huge deficits, no 2,000 page legislation. Just doin' business in the freest country on the planet. Just the return of those well-paying jobs to the good ole U.S.A.