Sunday night 60 Minutes Lesley Stahl offered a look at theworld’s newest corporate tax havens. If you missed it you can find it online at
Stahl’s report is right on one count. American corporationsare taking drastic action to prevent the highest tax rates in the world fromsiphoning off profits. Profits that could be used to expand the Americaneconomy are now being spent to develop jobs in Ireland, France and Germany.Currently, American corporations are holding $1.2 trillion overseas for taxreasons. Bring it back to America and the government gets 35 percent of it.
And what is the liberal response to this un-Americancorporate greed? Texas Democratic Congressman Lloyd Doggett has proposedlegislation that corporations be taxed on where their corporate management andexecutives actually reside. The result of course by Dogget’s own admission isthat companies will actually move those executives to places like Geneva.
Brilliant, now we are not only encouraging moving ourmanufacturing jobs overseas but all those high paying corporate executive jobsas well. And what exactly do you think is going to happen to all the supportstaff? Are they going to move as well or will the executives just hire localreplacements in Switzerland?
How’s that tax the rich thing working out for you?
Liberals have spent the last 60 years attacking evilcorporations and corporate greed. But corporations are nothing more than acollection of individuals that have agreed to work together for economic gain.Anyone in this country can become an owner in these economic enterprisesthrough the purchase of shares. Truth is most Americans already have some stakein the financial health and success of American companies. If you have a 401kretirement plan for example, your retirement depends on the financial health ofcorporate America. So when the corporate executives take action to minimize thedrain on their profits imposed by unrealistically high tax rates they areacting in the best interest of their shareholder owners.
It has often been said over the last 30 years that we nowmust compete in a global economy. That is true but those that think ofthemselves as progressive are still trying to resort to economic policies thatmake it more and more difficult for us to compete in that global economy.
A free people will do what is in their own best interest.That has been a foundational principle of our country since its founding. Wemust abandon this self-destructive policy of class warfare and start to worktogether to re-invigorate the American economy so that we can once again be theeconomic leaders of the world.
Don’t get me wrong. I am not proposing American companiesget a free ride on taxes even though it could be argued that businesses don’tpay taxes – people do. The fact is our tax system is obsolete, punitive and outof balance with our competition. That is also true at the state level and thatsimple fact is now driving jobs not just across state lines but overseas.
It is time to bring our American companies and our jobshome. That is the only jobs program that makes sense.