Ratickle
Founding Member / Super Moderator
i disagree, corporate america did it and then the gov wanted their share, seeing the profits rise, an excise tax was invented to make it seem like the gov was "penalizing" them for exporting labor.
The actual excise taxes were around 20% for most non-ally countries. When Clinton was president, he signed NAFTA and gave China most favored trading status. Remember Perot's rediculed charts of the giant sucking sound of jobs? Check them now...
When he did that, under trade law, those countries products they exported to us were reduced from an average of 20% tax to 2% tax.
So, there were a bunch of boom years for the US. We were able to buy shirts, shoes, toys, etc at an average 18% reduction or more. That was what kept inflation from happening on goods.
Then, we started losing jobs.
I believe the federally mandated (once again) expense of raising the minimum wage by the dems accelerated it. It doesn't sound like much when we say 13 million people got a .70 raise, but it is still a tool that gives other countries an advantage. (Even if it is US corps manufacturing there, or foreign corps). It is still 9 million dollars an hour increased expense to companies sqeeking by, or the equivalent of 1.4 million workers who companies can no longer afford to have on payrolls.
Anyway, the job losses started because it was cheaper to make it overseas and pay a maximum of 2% tax. And it has continued to snowball from there.
The federally mandated cost of operating a corporation in the US is around, (I'll need some help here);
7.5% matching FICA
2% unemployment
7.5% payroll
Medicare/Medicaid ?
and the other pollution and safety costs foreign manufacturers do not have to have.
Then, if you make a profit after all that.......
Corporate Income Tax Rates--2009
Taxable income over Not over Tax rate
$ 0 $ 50,000 15%
50,000 75,000 25%
75,000 100,000 34%
100,000 335,000 39%
335,000 10,000,000 34%
10,000,000 15,000,000 35%
15,000,000 18,333,333 38%
18,333,333 .......... 35%
And when you add the state level corporate income taxes to these, we are the highest in the world.
I've never been a proponent of conspiracy theories, but I'm starting to wonder if the politicians do not really want a world economy and world government because they think they'll be in charge. Kinda like a Hitler type takeover but with money instead of guns.
