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1. M Bathurst
     (11/22/2017 12:56:41 PM)
     Message ID #294110

This message is in response to Thomas C ( message id #294039 )  View All Related Messages

Mr. C - thanks for the compliment. However, I am not interested in interpreting any questions from the knuckleheads regarding taxation (this comment is not aimed at you). They would be unable to locate their arses with both hands on a map.

On numerous occasions, I have attempted to explain the impact of the territorial taxation of US corporations. When BMW can make money anywhere in the world and pay taxes where earned; then be free to reinvest those earnings anywhere in the world that is advantageous to the company, even Germany without an additional layer of taxation on the investment - they win. When Ford is not free to do the same; the Left is up in arms about all the jobs gone overseas. The real problem is not that jobs are overseas (that was always going to happen - the global markets the Left loves); but, rather US investment of foreign earnings back in the US is going to be hit by a "surcharge". So, Ford makes the decision, all things considered equal, build a new plant in Mexico at x-cost or Texas at x-cost PLUS 35% tax hit - what would you do?

As for individual taxes - the Bush tax cuts actually moved more taxpayers off the tax rolls and increased the amount of taxes taken from the high-earners. Today, roughly 47-50% of the public pay zero income taxes; and, many get refundable tax credits; so in essence they are at a negative rate (not a bad deal). While, the top 1% pay almost 50% of all incomes taxes. Prior to the Bush cuts, that number was closer to 20%. So, you would think the Left would love the vastly increase progressive impact of the Bush tax cuts.

So, if you are going to provide a tax cut to individuals; of course those paying the most will benefit the most. After all, how can someone paying zero income taxes benefit; they already are at zero tax cost.

When tax policy gets reformed, there are losers and winners. The key here for me is the corporate reform - I would like to see 15% rather than 20%. Corporations in essence do not pay taxes, the consumer pays them. So, this is a consumer pricing win. Plus, by making the US a "tax haven" for corporations will likely goose the economy big time (the US is the largest market in the world - if foreign entities can come here an pay 15% - they will come). And, the repatriation of foreign earnings will be a non inflationary (no new money is being printed - it is already in the system) injection of capital into the US. Even, if the FE are used in a share back program, it will generate revenues for the Treasury in the terms of capital gains income on taxable shareholders.

Mr. C - much of what you read here is what I call financial/monetary pen!s envy; nothing more, nothing less; coupled with a profound lack of financial / tax policy and the economic impact on the economy.

Have a great Thanksgiving.
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