Apparently, we have quite a bit of animosity and pent-up anger against the 1%, and also against corporate America. This is quite unfortunate because whereas unions demand more jobs, higher pay, and better benefits and pensions the unions are also lobbying their Congressman to put forth more economically damaging rules and regulations preventing the corporations from making a profit. We can't have it both ways. We can't expect corporations to hire more people if we make it tougher for them to operate profitably. Okay so let's talk about this because we are hardly the only nation with this schizophrenic mindset.
There was an article in the Wall Street Journal on December 15, 2012 titled "Portugal Moves to Cut Corporate Tax," by Patricia Kowsmann which noted that the average EU corporate tax rate is 22% and Portugal's current corporate tax rate is 23% but now the minister wants to make it only 10% which would be the lowest in the Eurozone. Good idea or bad idea you ask? Well, I think it is a smart idea, and will allow Portugal to recovery faster than the other socialist PIIGS (Portugal, Italy, Greece, and Spain).
In the US we appear to be threatening the opposite path forward, take the recent Wall Street Journal article "Corporate Taxes on Table in Cliff Talks," by Damian Paletta, Janet Hook, and Carole E. Lee. Now some might say "that's just crazy talk," to which I wholeheartedly agree, and many might say this is just an attempt to get the corporate lobbyists to continue to pour in campaign contributions at the 11th hour of the Fiscal Cliff negotiations. Yes, could be, but it certainly doesn't help confidence amongst corporations, nor will it promote future job growth or capital investment decisions.
Perhaps we should take a note from what Portugal is doing, and what the president of Poland had done to ensure their economic prosperity in the past. If we wish to have more corporations operating here in the United States, hiring more people, and upgrading our industrial capacity and output then we need to do the same and lower corporate taxes. It's no secret, and apparently many states understand this as they are giving super deals to corporations who invest in their states and bring jobs into their borders.
The same thing is true for the United States of America, and we should work together as we are competing in a global economy. Yes, we have the best consumer market, and the largest expenditures for what corporate America makes, and therefore we should try to have as much of that made here as possible, as that will provide more jobs. There's no reason to cut off the hand that feeds us or continue in these class warfare and anti-corporation negative media attacks.
It appears that Portugal is getting over their hypocrisy, and considering the future and the potential for growth. Sometimes what the socialists claim will bring economic prosperity, even if it is bathed in the greatest intentions, will literally be an economic disaster for future jobs. Indeed I hope you will please consider all this and think on it.
Lance Winslow has launched a new provocative series of eBooks on Corporate Business Concepts. Lance Winslow is a retired Founder of a Nationwide Franchise Chain, and now runs the Online Think Tank; http://www.worldthinktank.net
No comments:
Post a Comment