Question:
Why can't liberals understand that their policies are the cause of businesses outsourcing to China and India?
2010-08-25 18:54:26 UTC
Liberals tax and regulate the life out of businesses to such an extreme that business generally have to raise their prices almost 20% to cover the cost of the taxes, regulations, and compliance costs. Is it any surprise then that businesses are shipping jobs overseas with no end in site?

Taxes in the US

Business
0-39% Federal
0-12% State

Individual
0-35% Federal
0-10% State

Payroll
15.9% (2.9% of which is REGRESSIVE)

Sales tax
0-10% (states/local only)

At what point do liberals realize that businesses will flee overseas to find a more business friendly environment?
21 answers:
2010-08-25 18:58:14 UTC
...and ALL those are LOWER than other countries' taxes. Try again.



Edit: (sigh) No...In most cases, the US does not collect ANY corporate taxes. With all the writeoffs, most companies get a REFUND...see BP. "Under U.S. corporate tax law, companies can take credits on up to 35 percent of their losses."
Spook
2010-08-25 19:10:24 UTC
They cannot make the connection that once money is taken from the private sector it stops producing. They are like the farmer that killed the goose that laid golden eggs for Thanksgiving dinner, once the source is gone, there will be no more eggs. When business has what once was working capital taken out of their reach, they have to borrow, costing more in debt service. With the taxes, regulations, payroll tax assessments, unemployment insurance and benefit packages, business has less to work with and small businesses are more likely to fail. Small businesses are responsible for over 50% of our employment. The larger businesses will outsource when they can just to stay competitive with other manufacturers from off shore. The onus was already too burdensome and then the Democrat housing scam hit and borrowed money became scarce, causing many small manufacturers to downsize or fail.

Their math at best is fuzzy and cannot make the connection of our failure to their regulation and taxation

The structure of business, despite popular belief, is fragile, like being on a tightrope. It does not take much of a hostile environment to spark failure, especially small businesses.
Strega
2010-08-25 19:10:27 UTC
The United States has the second highest corporate tax rate of the 30 countries in the Organization of Economic Cooperation and Development (OECD). But because the United States has so many generous special tax preferences for businesses, it collects the fourth lowest corporate tax revenues as a share of GDP among all OECD countries.



Maybe it's you who have it wrong or have been mislead with a partial truth.
?
2010-08-25 19:04:29 UTC
Probably because they do not understand the facts and even of they did they would not accept any responsibility(s). Most democrats believe that private business's should be happy to give up their profit's. Democrats also believe that paying income tax is a "good" thing and favor more socialism in this country even though the US Constitution has no provisions for that form of government.
Robinson Cruz
2010-08-25 19:19:14 UTC
What you say makes no sense. If a company ships jobs overseas, they avoid very little tax. Example: Take a printer made by Company A in the US and sold in the US. Company A decides to outsource the printer making jobs to Malaysia, and then re-import and sell the printers in their US market. TCompany A is still liable for the state and federal corporate taxes on its profits. The purchaser is still liable for the sales tax. The only tax savings for Company A is the payroll tax for the employees it no longer has in the US. If that was sufficient incentive to outsource, it would have happened in 1935, when the social security tax was first implemented. It would have accelerated in 1965, when Medicare as added to the payroll tax. It would have accelerated even more in the 1980's, when social security taxes were increased. None of that happened because payroll tax avoidance is not a sufficient reason to outsource.



The advantage came in the 90's, when the worldwide boom in capitalism after the fall of the Soviet Union allowed emerging economies to develop sufficient infrastructure to handle the shipping of raw goods in and finished goods out. Emerging economies also developed semi-skilled labor that was still very cheap. At that point, outsourcing made sense. Which liberal policy was it that caused the fall of the Soviet Union? None. Reagan did that, as any good conservative will tell you. After that, it was just good old fashioned capitalism and free enterprise that led to economic boom times in emerging economies. Which liberal do you want to credit for that? Companies outsourced jobs when it became profitable for them to do so, not because they wanted to save a few bucks on payroll taxes.



Another reason companies outsource jobs now is that overseas economies are increasingly profitable places to sell goods. That's where tax policy kicks in. A US company that produces a product in Country X and sells that product there is not taxed on the profit of that transaction in the US. That's right. Companies can avoid state and federal corporate taxes by outsourcing jobs to locations that serve as foreign markets for their products. Now, which liberal do you suppose advocated that tax policy? None. In fact, one of Obama's campaign issue was to tax such profits.



Now, I'm not going to turn the tables and blame outsourcing on conservatives. Free trade and global capitalism are good things in general, but they quite naturally lead to increased outsourcing from developed countries with higher labor rates to less developed countries with lower labor rate. Unless you want to give liberals credit for free trade and global capitalism, don't blame liberals for outsourcing.
honestamerican
2010-08-25 19:05:12 UTC
False what has devastated American business was the republicans screaming "protectionism" when American manufacturers,their employees and suppliers asked for import restrictions back in the late 70's and early 80's!



Republicans allowed FOREIGN companies to have unfair advantage on AMERICAN businesses like the auto industry,steel industries and rubber industries!



Conservatives betrayed the companies that made America into a superpower during WW2!



Should we mention how much conservative president's added to the national debt since then?



BTW---Very coincidental that all those industries were located in "liberal" states huh?
norskeyenta2
2010-08-25 19:20:42 UTC
You are wrong. The Rich Republican Business men/women are the ones who took their companies to Foreign Lands. India, China, Pakistan, Mexico. What for ?? Cheap land to build on, and real cheap Labor. Sweetie Pie
Jacob W
2010-08-25 19:00:18 UTC
You forgot a few things. Don't forget the overly restrictive Environmental Restrictions that make a lot of manufacturing processes all but impossible to perform here.



To your question, Liberals have a template that never changes. That template says that the cause of outsourcing is greed. Facts do not matter. Figures do not matter. Nothing matters but that template.



*
?
2010-08-25 18:56:26 UTC
What are the tax rates that they pay in these other countries? What loopholes did you miss?



Flat taxes would mean that my taxes would go up and the guy making 50 million a year would go down. I can't see how I, or the other 250 + million Americans, could go for that.



If you really want to lower taxes, talk your grandma and mine into giving up some of their medicare and social security checks.
2010-08-25 18:58:45 UTC
Right.

And as soon as Americans will work for 50 cents a day and corporations can pollute without restriction like they can in China and India, all our jobs will come back.
2010-08-25 18:58:15 UTC
Why can't you understand outsourcing is integral to Capitalism. Telling companies where they can and can't operate or who they're allowed to do business with goes against everything America stands for. America forced this one everyone.
?
2010-08-25 18:59:26 UTC
at what point will conservatives admit that giving american corporations GRANTS to encourage them to move their manufacturing operations offshore is NOT good for the american people?





see also Exxon-Mobil's refinery in Bolivia and Harley-Davidson's factory just outside Beijing.



both bought and paid for by the american taxpayer in 2005 when conservative republicans controlled all three branches of the federal government and GIVEN to those companies completely free of charge.



thank you, bushistas.
Tom K
2010-08-25 18:59:18 UTC
Because they are way too busy telling us all how much SMARTER they are than all the rest of us. How we don't know how to run our own lives and how we would all be so much better off if we just let THEM run the Country. Well they are and it SUCKS!
?
2010-08-25 19:05:46 UTC
According to the Treasury, the amount of debt to China has dropped since Bush left office.

http://www.treas.gov/tic/mfh.txt



It was ol' Mr Illiterate who did all the naughty borrowing from China, and it was on ol' Mr Illiterate's watch that outsourcing skyrocketed.
2010-08-25 18:57:19 UTC
US has the highest corporate tax rates in the world because of Liberals - they'll never understand.
?
2010-08-25 18:58:12 UTC
democrats live in a social justice Utopian fantasy world of perfect harmony... at least that's what they strive for. So, with that said, they provide more and more entitlements... and the self reliant and self supporting pay for the dead beats to get their entitlements. So, our taxes go up and up.

.
2010-08-25 18:58:23 UTC
If this were actually, Bush and the Republicans could easily have FIXED this, when they ruled the country for SIX years.
Wiseguy
2010-08-25 18:56:56 UTC
When will cons realise that this outsourcing is the result of falling wages in America due to an cataclysmic rise in corporate profits?
2010-08-25 18:58:02 UTC
I believe unions drive business elsewhere as well due to the inflated wages and benefits ..............
2010-08-25 19:01:17 UTC
You've soaked up the right wing lies from FOX FAKE "News" very well!
?
2010-08-25 18:56:07 UTC
False.



That all started after Reagan cut taxes.


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