Ferrari Mailing List: Re: NFC: Here comes BO's 10 % US National Sales tax

[Jim Conforti (lndshrk]

At 01:29 PM 5/28/2009, Mike Fleischer wrote:


> Immense ammounts of
> anger over what is clearly not in their control and never really was to
> begin.

  Really?

  Well, here's something for you and yours to chew on.

  (Well, besides the fact that not only is Fox News "still on the air"
   but that their viewership has grown to the point that FOX has more
   than double the viewers of MSNBC or CNN or HLN.  In fact, FOX has
   more viewers than MSNBC and CNN **combined** - apparently a LOT of
   people are: "conservative", "didn't vote for Obama" and, "are sick
   and tired of the 'liberal' point of view in the MSM")

  Back on topic....

  First, the simple:  Basic Math and Economics.

  The recovery from a recession requires people to SPEND.

  (of course "lack of spending" is one of the defining points of "recession")

  If there is a 10% National Sales Tax, spending will be less, and
  the "recovery" will take longer - if it happens at all.

  That's basic economics - price of things goes up - less gets sold.

  Less gets sold - revenue stream to business is less - less workers
  getting paid less money - and the cycle goes roundy-round.

  So ask yourself - why would someone (Obama) who supposedly is trying to
  "bail" the country "out" of a recession do something that is virtually
  guaranteed to cause the country to go deeper INTO the recession?

  (File that under: "anachronism")

  Now, the more complex.

  I say "complex" because it's apparently something BASIC about businesses
  and TAXES that the liberals don't seem to GET.

  There is DAMN WELL something U.S. business owners CAN do to deal with
  oppressive taxation - it's called move your production offshore.

  (It's the same thing "High-net-worth" individuals CAN DO, and DO DO
   anytime a government becomes opressive w/ taxation - they LEAVE)

  Businesses are taxed on PROFITS. (and sometimes retained earnings)

  If products are made in the USA - The business pays taxes on the
  difference in value between what is essentially the component
  value (plus the labor costs) and the sale price.  Plus that labor
  cost for US employees is generally more than offshore.

  If the products are made offshore and sold back to a US sales corp
  at what is 90% of their US Sale Price - They pay tax on that 10%.

  Depending on where the product is made - They will likely pay LESS
  in labor costs - and in many countries NO taxes on the profits.

  All that money sits offshore as retained earnings.

  Congress and the IRS can pass all the goddamned "laws" and "regulations"
  they want about it - and the countries gaining employment/etc will
  CONTINUE to tell them to "f*** a duck".  Simply because THEIR prosperity
  and continued survival is based on being a business haven.

  Welcome to THE REAL WORLD - Mike.  Welcome to the GLOBAL REALITY.

  Raise your taxes to pay for your social(istic) utopian nonsense.

  Watch businesses extend their middle finger and move offshore.

  Watch unemployment in the USA grow worse and worse.

  Reality is a harsh mistress.

  JC