Wednesday, February 24, 2010

Obama Calls For Partnership With Business - NOT

Democrat Socialist President Obama is calling for a Partnership With Business when in fact he is the most anti-business President in the history of the United States. Obama supports higher taxes on business, in one form or another, including elimination of the deferral of US Corporate income taxes on foreign profits. That would mean that American global companies would be subjected to US corporate income taxes of 35%, about the highest in the world, on overseas income, when their competitors operating overseas pay significantly less.

If this change in the law is enacted by the Democrat Socialist controlled Congress, it will be a job killer bill because ultimately it will make American companies less competitive. And, at the same time that the President insists that the banks make loans to small business, Obama wants to impose a penalty tax of $90 Billion annually on the 50 largest banks in the US, that have paid back their TARP loans, plus interests. This is addition to other normal corporate income taxes. This is money that the banks will then not have available to loan to small companies. Well dah!

Many US global companies today generate 50% or more of their revenues outside the US. And, American companies are already hindered by American tax law related to assigning American managers to their overseas operations because the US is one of the few countries in the world that taxes worldwide income. If an American manager with a base salary of $80,000 is moved to most countries in Europe, by the time various moving expenses are paid by the company, it could cost the company as much as $400,000 to maintain that employee overseas each year because income taxes are due in both countries, which then have to be equalized.

So rather than assign an American to the job, it is much cheaper for an American company to choose one of their British or German employees to do the job to avoid this double taxation and expense. This then denies the American manager this global experience, which in the long run is detrimental both to the employee and our country in a global business environment. Believe me, I know this problem first hand as the President of a Global Relocation company.

Further, Obama is determined to enact CAP & TAX one way or another, which will significantly raise energy costs for business and all Americans. The President may not get his way through an act of Congress so he has issued an Executive Order to have the Environmental Protection Agency use the Clean Air Act to impose penalties on companies that have carbon emissions. Of course, there have already been 16 lawsuits filed to stop this usurpation of power; but since the case will be in court for years, in the mean time, these new regulations will be very damaging to American business and our economy. This is another job killer at a time when we need new jobs desperately to bring down unemployment.

Obama is pushing Card Check to allow Unions to gain more members, presumably his PEEPS, without a secret ballot vote. This would allow Unions to intimidate workers into joining unions. In violation of free speech rights, Obama wants to restrict management from attempting to convince workers, over a reasonable period of time, that a union is not in their best interests. If this law is enacted, American companies will shift even more jobs overseas. Unions want to impose work rules and higher wages and benefits on non-union American companies like they did to the auto industry, which has been disastrous.

Finally, Obama intends to allow the Bush Tax cuts to expire as of January 1, 2011. This will result in the biggest tax increase in American history of perhaps Two Trillion Dollars over the next ten years. This is the biggest transfer of wealth from individuals and the private sector to the federal government in the history of the United States. This is likely to cause the loss of million of jobs as people and businesses have less money to spend and invest. This is the reason that economists are projecting high unemployment for the next five years. President Obama and the Democrat Socialists that control Congress continue to enact or propose laws that are job killer bills, which is the reason unemployment has gone up.

It is impossible for business to have a partnership with President Obama because he is a Socialist that does not understand, or believe in free enterprise and capitalism. Obama sees business as evil and businessmen and women as greedy and self serving rather than the job creators that they are. Obama believes in big government and high taxes at the expense of the private sector, which will destroy our economy and cost millions of jobs. Obama's ideology is based on Keynesian economics, which has never worked to produce private sector jobs and prosperity any where in the world it has been practiced.

We absolutely must take back our country in 2010 and 2012 to bring back prosperity and job growth. To do so, we must elect common sense Conservatives that support limited government, less regulation, lower taxes, a balanced budget, term limits, the US Constitution as written by our Founding Fathers, the right to bear arms, the sanctity of life and family values. We can do it. We are going to it.

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