Tuesday, February 21, 2012

Obama Proposing Corporate Tax Cut - Business Beware

Socialist President Obama is proposing a cut in Corporate Tax Rates from the current 35% to 28% by eliminating various deductions.  This is still too high compared to other nations that are lower; but business BEWARE.   Socialists never support real tax cuts.   With one hand, Obama will propose this tax cut; but with the other crooked hand, Obama wants to tax overseas income that today is only taxed in the US when profits are brought back to the United States. 

Currently, overseas income is taxed in the country where it is generated as long as those profits remain overseas.  In addition, as part of his war on carbon based energy, Obama wants to raise taxes on the oil and gas industry, that already pays very high taxes and royalties, which will only raise the cost of energy to all Americans and lower our standard of living. 

For many global corporations, Obama's Socialist tax scheme will amount to an big increase in taxes, not a cut.   Only Japan has a higher corporate income tax rate than the United States.   And, Japan is in real trouble as many companies are moving operations out of Japan to China and other countries.  Some American companies are even moving  manufacturing out of Japan back to the United States because the cost of doing business in Japan and taxes are so high.  Companies are voting with their feet, as they always do, when government policy is detrimental to doing business in a state or country. 

It makes no sense to penalize successful American global companies that have operations throughout the world.  In fact, those companies should be encouraged to succeed and grow.   If Obama's tax scheme is enacted, which is doubtful, American global companies will not only be forced to pay income taxes overseas, they would then have to pay income taxes in the United States on the same revenues, which will just mean less money to invest in new technology or more employees, whether in the United States or overseas.   This is about as dumb as it gets.  It certainly will not bring jobs back to the US, in any case.  Obama's tax scheme is a job killer.  This policy could even cause a trade war. 

Socialists do not understand global business, or for that matter running any business.   When individuals or corporations pay higher taxes, they have less money to spend on goods, services, or new employees.  Taking money out of the private sector to fund bigger, bloated, corrupt government just depresses economic growth and real job creation.  Obama has already borrowed and spent about four trillion dollars trying to stimulate economic growth and job creation; yet we still have high unemployment and more people on the dole than at any time in our history.   Obviously, Obama's Socialist Schemes have failed.  

We need to take back our country in 2012 and 2014 by sweeping Socialists, at all levels of government, including President Obama, out of office.   We need real tax reform; not phony tax cuts that are really a tax increase.   To make that happen, we must elect Conservatives that support free market capitalism, limited government, lower taxes and less regulation, a balanced budget, term limits, real education, energy, health care and entitlement reform, a strong national defense, including securing our border and fighting Terrorism, the right to bear arms, the sanctity of life and the family as the foundation of our nation.   This is the platform supported by the majority of the American people and the only way to restore economic growth and job creation again in our county. 

In the mean time, when ever you hear Socialists talk about cutting taxes, hold on to your wallet.   It will not happen as long as Obama is President, which is one more reason we must make Obama a one term President.  We have to take back our country in 2012 and 2014.   We can do it.  We must do it to preserve our freedom, our nation and way of life for the sake of our children and grandchildren.  We need real tax reform; not phony baloney. 

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