Obama's Covert War On Jobs And Trade

Employing deception similar to that being used in the health care debate and Cap and Trade legislation, Obama is poised to cost Americans jobs and limit potential growth of GDP by mis-characterizing additional taxes on corporations already paying the second highest corporate tax rates in the world.

An editorial in the Times of Trenton spells out all the details if one wants to fully understand what's at issue. Some may recall Microsoft's expressed concerns, which will force them to locate more American jobs offshore.

In brief, the contemplated measures will shrink domestic jobs and GDP growth while putting American companies who currently grow jobs by a 2 - 1 ratio in America at a competitive disadvantage in 95% of the world market unless they re-locate facilities overseas.

Read the anti-business details at first link, or at link below.

It will be necessary to make the distinction far more clearly in the near future because, in order to hasten our nation's economic recovery, U.S. businesses must be able to expand their reach to the foreign consumers who represent 95 percent of the world's purchasing power. Moreover, Americans need a better understanding of U.S. companies' operations abroad because of the Obama administration's plans to undo this country's international taxation rules that have been in place for nearly a century.

The administration has vowed to "restore a sense of fairness and balance to our tax code by finally ending the tax breaks for corporations that ship our jobs overseas," intending to accomplish this by imposing an enormous tax hike of $200 billion on worldwide American companies. The problem is that the premise is fundamentally flawed and exploits the confusion surrounding the overseas business of American companies.

Let's take a closer look at the administration's claim, word by word.

The bottom line is this: U.S.-based international companies unquestionably pay far more taxes than their foreign counterparts and yet continue to create far more jobs in America than they do overseas. Such a dramatic tax hike will almost certainly cause America to lose its edge in the global marketplace -- perhaps forever.

Comments

[WBestPresidentEver]

We can only pray this bill does not passes.
They even put things in the bill overnight that no one has read and I know no one else read the 1200 page bill that is voting on it.
This country will suffer greatly in all aspects of our way of life if it passes. Maybe if it does pass today it will be defeated in the senate.
This administration has gone insane. The men need to bring in the white jackets and round up all these sickos and take them to the damn funny farm.
I am appalled at this administration games and tricks at shoving all this crap down peoples throats.
What has become of our society and what has happened to the government of this country ?
In 2010 I do believe we are going to see a lot of changes and I hope the little weasel Waxman disappears suddenly.
I am watching these crazy folks on CSPAN today debating this CAP AND TRADE TAX BILL. Gas will increase by 77 cents a gallon and deisel will increase by 87 cents. Can you even imagine what our electricity will go up and our natural gas and heating oil.
These rich cats could care less about we the people. It does not bother them they can afford to pay for the extra crap. Normal folks cannot afford crap like this.

[WBestPresidentEver]

The chairman for the house floor today on this bill was asked about the 300 pages that were added late last night. No one has been given a copy of those 300 pages and NO ONE HAS READ THEM.
She was challenged about the house voting on a bill that has 300 added pages that no one has even read. When asked about it she siad the pages were being intergrated into the original bill and was not completed as of yet. The representative from Texas asked for a 50 minute recess in order to read the bill. He was denied.
So the bottom line here today is that they snuck in 300 more pages last night that no one read and they are wanted people in the house to vote on it anyway.
What a crock. Is this the way our government is run ? DAMN !
A huge circus ! The donkeys are hee hawing. Wish the elephants would tromp all over their ass's.
DISGUSITNG.

[IslamoLlama]

"-- In brief, the contemplated measures will shrink domestic jobs and GDP growth while putting American companies who currently grow jobs by a 2 - 1 ratio in America at a competitive disadvantage in 95% of the world market unless they re-locate facilities overseas. --"

Been there, done that Dan. Jobs outsourcing was SO 1990s.

"-- For example, when a U.S. company sells a product in Germany, it must pay taxes on its profits to the German government as well as to the United States. --"

That's simply not true. If you've ever paid taxes internationally, you'd know that the US Government exempts taxes paid on overseas income from your return. This is an out and out fabrication.

http://www.irs.gov/businesses/article/0,,id=183263,00.html

This is the IRS guide for completing Form 1116 - the Foreign Tax Credit Form. Corporations make use of the Form 1118.

"-- US taxpayers claimed over $90 billion of foreign tax credits on US individual and corporate tax returns in 2005. Foreign tax credits allow US taxpayers to avoid or reduce double taxation. You may choose to take a deduction for foreign taxes paid instead of choosing a credit. In most cases, it is to your advantage to take foreign income taxes as a tax credit. --"

And, of course, there's this whooper of a lie to go along with it.
"-- but it will again strike very close to home with the increased costs of goods and services; as we well know, higher taxes mean higher prices. --"

Since the Bush Tax Cuts in '01 and '03 there has been no significant change in the growth rate of the Consumer Price Index.
http://commons.wikimedia.org/wiki/File:US_Consumer_Price_Index_Graph.svg
In fact, we've seen a steady increase in prices since the mid-70s. Certainly, key consumer goods like food and energy have not seen any significant declines in the Bush Era. If you can find a correlation between tax rates and price, I'd love to see it, but from this data there is none.

[dave christensen]

Taking early retirement here before B. Hussein Obama completely destroys and bankrupts the country. Have a little place one-half mile from some great fishing and small game. For the Obamaphiles, enjoy your now assured misery.

[North Dallas Thirty]

"That's simply not true. If you've ever paid taxes internationally, you'd know that the US Government exempts taxes paid on overseas income from your return. This is an out and out fabrication."

Actually, you're the liar, IslamoLlama.

You do indeed pay taxes to both the US and Germany. A tax CREDIT, which you would know if you had in fact ever filed taxes, is a rebate on tax that you have already paid. Furthermore, while you may elect to exclude eligible foreign-earned INCOME, doing so does not exempt you from paying taxes on it.

No surprise that the Obama puppet who didn't know that house sales and stock sales by individuals were subject to capital gains tax has even less of a clue about international tax law.

And what does the Obamamessiah want to do? That's right; eliminate the credits and exclusions. In other words, the stupid IslamoLlama is whining about "exclusions" even as its Obamamessiah is planning to ELIMINATE them.

Maybe the IslamoLlama can tell us what good it does to vastly increase taxes on US businesses.

http://online.wsj.com/article/SB124157636504090459.html

[North Dallas Thirty]

If you can find a correlation between tax rates and price, I'd love to see it, but from this data there is none.

Bye bye.

"BO Director Douglas Elmendorf testified before the Senate Finance Committee on May 7 that the cap-and-trade price increases resulting from a 15% cut in CO2 emissions would cost the average household roughly $1,600 a year, ranging from $700 in the lowest-income quintile to $2,200 in the highest-income quintile. Since the amount of cap-and-trade tax rises with income, the cap-and-trade tax has the same kind of adverse work incentives as the income tax. And since the purpose of the cap-and-trade plan is to discourage the consumption of CO2-intensive products, energy or means of transportation by raising their cost to consumers, the consumer-price increases would be the same for a 15% reduction in C02 even if the government decides to give away some of the CO2 emissions permits.

But while the cap-and-trade tax rises with income, the relative burden is greatest for low-income households. According to the CBO, households in the lowest-income quintile spend more than 20% of their income on energy intensive items (primarily fuels and electricity), while those in the highest-income quintile spend less than 5% on those products."

http://belfercenter.ksg.harvard.edu/publication/19018/tax_increases_could_kill_the_recovery.html

[MarkJ]

Obama must truly love the poor...because he's wanting to make so many of them...and keep them that way.

I suppose The-Smartest-Man-On-The-Planet hasn't figured out that if people are paying nearly $2k more for energy every year, they're going to spend correspondingly less on other things...like contributions to the Democratic Party or Lord Zero's own 2012 reelection campaign.

[IslamoLlama]

"-- You do indeed pay taxes to both the US and Germany. A tax CREDIT, which you would know if you had in fact ever filed taxes, is a rebate on tax that you have already paid. --"

Haha. Really, NDT? So if I give you $10 and you give me it back, you consider that a net $10 expense?

$10 - $10 = $10
That is some jaw dropping wingnut math.

"-- But while the cap-and-trade tax rises with income, the relative burden is greatest for low-income households. According to the CBO, households in the lowest-income quintile spend more than 20% of their income on energy intensive items (primarily fuels and electricity), while those in the highest-income quintile spend less than 5% on those products."--"

Hey look, more wingnut lies. You can't even get the numbers in your own reports right.

"-- In a press release issued today, Republican Whip Eric Cantor (R-VA) repeated the debunked statistic. "The Office of House Republican Whip Eric Cantor (R-VA) today launched a new video news release entitled, 'Number One Priority.' The video highlights Speaker Pelosi's top priority, 'cap and trade' legislation that will impose a national energy tax of up to $3,100 on all Americans and slam small businesses with higher energy bills, causing the loss of millions of jobs."

Note that the language has changed here, too. Republicans used to claim that a cap and trade system would cost the average household about $3,100 per year. Now, Cantor's saying it will cost them up to that amount. The CBO report found that households in the highest income quintile will likely see a net cost increase of $245 per year as a result of the Waxman-Markey bill--which, to be fair is only 12 or 13 times less than Cantor's claiming. --"

http://tpmdc.talkingpointsmemo.com/2009/06/despite-cbo-report-republicans-continue-to-claim-climate-legislation-could-cost-3100-per-household.php?ref=fpb

And it gets better. Because while lower-income individuals may pay a higher percentage of their income in energy costs, they still have smaller total bills. Which means they use less energy. Indeed, the cost on the average American household will be in the $150 dollar range.

"-- Broun’s tired hoax claims aside, Broun’s $3,100 talking point is contradicted by the Congressional Budget Office, which found that that the average cost of the legislation would be only 48-cents a day, the price of a postage stamp, and that “households in the lowest income quintile would see an average net benefit of about $40 in 2020.” --"

http://thinkprogress.org/2009/06/26/broun-globalwarming-hoax/

And, over time, the poorest among us will actually be paying less in energy.

The issue is affordable, renewable domestic power. You don't get that by screaming "Drill, Baby, Drill". Countries like Sweden are already moving to phase oil out of their economy, and not just for the hippie tree hugging reasons.

http://en.wikipedia.org/wiki/Oil_phase-out_in_Sweden

France embraced nuclear power decades ago and has become a major energy exporter in the region.

The Climate Bill isn't just good for the environment. It's good for the economy. In 20 years, I'm sure you'll be back to complaining about all those big Wind Farm Energy Unions and the oppressively high tax on your new electric car. But the conservatives had their decade to remake America and it failed miserably. Obama's in the driver's seat now. Get used to it.

[Rich K]

What a shock the links provided are all liberal .TPM, TP et al are all just what anyone here would expect IL to use as sources. But its ok, We love reading fiction here as much as elsewhere.Oh,and of course he will say that WIki is non refutable even though it can be Hacked ( er,updated ) at whim. Brovo and good show IL. We love having you here,Have a HotDog Brother, Its on Obama too.

[WBestPresidentEver]

TAKE YOUR CAP AND TRADE BILL AND SHOVE IT.
Pay for my energy bills why don't you. Pay for everyones increase in their bills. I am sure you can afford it.

[Karen]

If this thing passes in the Senate, my husband and I are selling everything and buying a boat and living on the water away from all this madness. He's wrecking everything!

[North Dallas Thirty]

"Haha. Really, NDT? So if I give you $10 and you give me it back, you consider that a net $10 expense?"

Ah, but you're not giving it back, puppet. Your Obama said that rebate was going away.

http://online.wsj.com/article/SB124157636504090459.html

Try dealing in reality.

Speaking of which, I love how the IslamoPuppet quoted its own leftist CBO report, which contains this little nugget:

"Most problematic is the CBO's complete omission of the economic damage resulting from restricted energy use. As footnote 3 on page 4 of the CBO analysis reads, "The resource cost does not indicate the potential decrease in gross domestic product (GDP) that could result from the cap. The reduction in GDP would also include indirect general equilibrium effects, such as changes in the labor supply resulting from reductions in real wages and potential reductions in the productivity of capital and labor."

http://www.realclearpolitics.com/articles/2009/06/26/cbo_grossly_underestimates_cost_of_cap_and_trade.html#_ftn4

In other words, the Obama administration and the leftists like IslamoPuppet are quoting a report which assumes that cap and trade will not cost businesses anything extra. Indeed, the cost number that the leftist quotes is nothing more than just the ADMINISTRATIVE cost of operating such a thing, and does NOT include any real economic impact analysis.

As usual, the Obama Party lies. What a surprise!

[SDN]

IslamoLama, like all other Leftards, never realizes that businesses DON'T PAY TAXES.

They exercise one of three options:

1. Raise prices.
2. Cut costs... by providing less product, made worse, by fewer people.
3. Close down, and go do something else, somewhere else, with the capital.