Inverted Logic

22 09 2014

Toronto

PJB’s latest tries to bring a little bit of reason to this Democrat manufactured election year hoopla over corporate inversions, manufactured by the same people who helped bring you NAFTA and GATT.

Really, it’s not that complicated.  Let me walk you through it.

An American-based corporation is subject to the higher than world average corporate income tax rates on the gross income that it generates from its American business.  It’s also subject to both the American corporate income tax rate and the relevant country’s corporate income tax rate on its business done outside the USA.

For our Yankee government to try to tax business that takes place outside the USA is like you setting the kids’ bedtimes for your neighbor’s household.

So to avoid this arrogant double taxation, firms are engaging in a tactic known as inversion.  Large American firm buys smaller foreign firm, and the headquarters of the new combined firm is wherever outside the USA this smaller firm was based before the buyout.  It now means that Uncle Sam can’t touch this firm’s outside-the-USA business income with the relatively high American corporate tax rates.  It does NOT mean that the new firm’s American operations aren’t subject to those American tax rates, because they are.

Take for example the Burger King inversion.  Before then inversion, BK’s American income was subject to American tax rates, but its non-American income in, e.g. the UK, was subject to both USA and UK corporate taxes, repeat for every other country where there are Burger Kings.  What happened in the inversion is that Miami-based Burger King purchased Toronto-based Tim Horton’s, and the new combined Burger King Tim Horton’s (BKTH) will be based in Toronto.  Which means that BKTH operations in the USA are subject to USA taxes, (and as you know, Tim Horton’s is going to open up a slew of stores in America, including one I told you about yesterday, the first one in St. Louis will be in Maplewood), but BKTH operations outside the USA are only subject to the relevant country’s tax rates and not also the American tax rate.

Therefore, this talk about possibly “repatriating” profits is a misnomer, because the profits were on income generated outside the USA all along.  To the extent that they could be theoretically “repatriated,” its only in the sense that the arrogant Yankee government thinks that all income in all countries of American-based firms is subject to American tax rates.

So what’s the solution?  Ideally, the Yankee government should quit thinking it owns the whole world.  Short of that, the best solution is an international convention harmonizing corporate income tax rates, especially the top marginal rate.

The one big difference, though, is that businesses are taxed not on every dollar of cash they take in as revenue, as individuals are, but they are only taxed on their gross income, that is, revenue minus expenses, though not every item of business spending is a legally defined business expense according to the IRS.

 





Global Economy Takes Another Bite Out of St. Louis

22 09 2014

Midtown

Bye bye Sigma-Aldrich.  The business experts think that the new owners will lay off most of S-A’s St. Louis work force.





Economic Man

6 08 2014

Amurrika

This sounded good, until I got to the details.

The pesky detail is that Alter thinks that “loyalty to America” means nothing more than paying taxes to the Leviathan based in Washington, D.C.   Which means that the modern left’s version of “nationalism” is nothing more than the same kind of economism and bean-counting that cosmo-conservatives and cosmo-libertarians have given us for a very long time.

Pat Buchanan once leveled the same sort of criticism at the same kind of people, only PJB thinks of nationalism in more proper terms, blood and soil nationalism, or pretty close to it.

If it were up to me, every CEO of every larger publicly traded corporation in the country would recite a pledge of allegiance to the white race every morning before the start of business.





Hey Kids

8 07 2014

Silicon Valley

Wanna make thousands of dollars a month being a summer intern at a major tech firm?

Go get it!

Before you go, realize that you’re probably going to be an every waking hour two- to three-month captive to your internship, and you won’t make as much as a full time full year minimum wage worker does.  Even though your work will be worth far more to fill-in-the-blank SV firm than the relative peanuts they’re paying you.

And also, don’t get a guilty conscience or anything over the fact that you’re being used as human cannon fodder in SV firms’ maniacal desire not to hire native born white Americans over the age of 35 with wives and children, you know, the ones that actually want to get paid serious money for their work because they have the audacity to think that they should make enough money and benefits to sustain a household, a house of their own in a quality public school district.





Energizer to Split Into Two

30 04 2014

Town and Country

Energizer_Bunny

Who gets custody of the bunny?





At the Corner of Everywhere and Everywhere Else

25 03 2014

Chicago

Walgreens to close 76 stores.  Though the way they’ve been growing in recent years, that’s like taking a cup of water out of the ocean.

Walgreens’s current advertising slogan is “at the corner of happy and healthy.”  Apropos, because in St. Louis, there seems to be a Walgreens at the corner of every street and every other street.  If I didn’t know better, I’d swear there’s a city ordinance that requires there to be a Walgreens at every perpendicular intersection of major streets.





Boner’s Courier

17 03 2014

Silicon Valley

Let me translate this for you:

Boner dispatched Bad-Latte to the SV to take their execs, bundlers and other money men behind closed doors and with all recording devices turned off to tell them to calm down, that some time in the middle of some night during the lame duck session between election day and Christmas, Boner is going to break the Hastert rule and call a vote on the Senate Gang Bangers of Eight bill as written and without amendments, and it will pass, and Obama’s ink will be on it before the sun rises.








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