Thursday, July 24, 2014

This is how American Free Enterprise has the solution.



First, here is how the solution of the Obama leftists always makes things worse.

The leftists complain that fat cat corporations are making too much profit and paying the executives too much so they have to tax the corporations more. 

The corporations respond by keeping money in banks overseas since they only pay taxes when profit is returned to American shores.   This hurts reinvestment in American jobs.  The leftist responded by planning to tax profits kept overseas. 

The corporations responded instantly by moving their headquarters overseas, registering their corporation overseas and dissolving the American corporation.  They lay off American workers.

The leftist responded by changing the rules and saying overseas corporations still have to pay American taxes if more than 50% of their business if done in America.

Now the American corporations are planning to sell off or shut down their American facilities raising American unemployment further and helping American hating leftists destroy the American economy.  That is the stupid America hating leftist economic planner’s scenario.  

 

But the solution of American Free Enterprise works as follows.The American Free Enterprise people complain that fat cat corporations are making too much and paying the executives too much because they are not paying dividends or expanding production and are instead robbing the share holders blind while they are cheating other Americans by paying little or no taxes at all.

The American Free Enterprise people respond limiting executive pay to no more than 100 times the higher of; the average wage of any American employed by the company or USA company supplier or, 200 times the average wage of any foreigner employed by the company or company supplier.  This is fair for Americans and limits the exploitation of sweat shop workers. 

In addition the American Free Enterprise people respond replacing the corporate income tax with a more appropriate value added Federal tax on all American Corporations similar to the EU amount of 20% but only on the value added by the corporation above and beyond the costs of all the materials and labor used the supply chain.  In addition it is managed the way the EU manages theirs.  It is built into the product purchaser’s cost.  Foreign trade improves because foreign individuals and corporations do not pay the tax.  The American trade balance would benefit enormously and American jobs would grow tremendously.   


 The problem with Obama, Kerry and Hillary and others such as Putin, Hitler, Mao, Pol Pot, and all the national religious dictators or nationalist socialists, internationalist socialists, or religious dictators or other want-to-be dictators is they hate the free enterprise economy or are just stupid socialists who failed Economics 101.  Most never even attended Economics 101.

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