Drip Drip

20 11 2014

Soulard

Slowly but surely, it’s happening.

One little salami slice at a time.

One day soon, we’re going to wake up to find that the square that encompasses Lynch, Broadway, Arsenal and 13th will be totally bereft of economic activity.  After the InBev deal in 2008, any idiot could have predicted that — After all, why would a bunch of Brazilians and Belgians care about St. Louis?  The actual brewery, the oldest in the A-B stable, for obvious reasons, is also the most expensive to run and maintain, and as far as corporate, Lambert is not a hub so it’s more expensive to come and go.  I figured after this deal went down that the Brazilians-Belgians would for political reasons keep things seemingly as they are for awhile, then gradually pull out of St. Louis.  Though I was expecting one big dramatic closure announcement; turns out that they’re being coy and taking out one piece at a time.

Hearkening back to the epic monarchy vs democracy debates at OD over the past two years, any St. Louisan who is old enough and literate enough will agree that A-B was better in every which way imaginable when it was the business equivalent of a monarchy, and got worse when it became the business equivalent of a democracy (a publicly traded corporation).

Rolling over in his grave:

gussie





Not Applicable

7 10 2014

Creve Coeur

Everyone’s favorite St. Louis-based GMO practitioner is going to dump a bunch of money for job training and mental health services for young black men ages 21-34 of Ferguson and in north St. Louis County in general.

Did I miss the news that Michael Brown died because he was a crazy unemployed twenty-something or early thirty-something?

Note:  I have not yet made up my mind about the GMO question.





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?








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