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Post By
neil

In Reply To
mjyoung

Subj: Re: Joe The Plumber...
Posted: Fri Oct 17, 2008 at 11:46:02 pm EDT (Viewed 843 times)
Reply Subj: Re: Joe The Plumber...
Posted: Fri Oct 17, 2008 at 11:00:15 am EDT (Viewed 828 times)



> The they I was referring to were corporations and people with wealth. They can both leave to go to different countries. A corporation would leave to go to a country with a much lower corporate tax rate. America currently has one of the world's highest.

First, they'd have to convince their shareholders. And then their executives to pack up and move somewhere else. And their employees to move to another continent. And they'd have to deal with all the headaches and paperwork and logistical issues and money-matters associated with relocated an entire business. And they'd have to either headhunt in the new country or keep an office in the USA to recruit people as they need them. And they'd have to risk placing their future in the hands of a totally unknown governmental system (will the tax rate change? what are their foreign ownership rules? what about their work visa rules for the American employees?) when they're quite comfortable with this one and have a record of securing the tax breaks and incentives they want when they just contribute money to the right campaign.

It's a false threat. It's easy for them to move the grunt work, but to relocate an entire corporation? Not so much.

As for rich people moving? There are always reasons. But if taxes were the only reason, then Bill Gates and Warren Buffett would have no reason to stay. And yet they do. So the country obviously offers something in excess of its tax structure - something else is clearly more important to them.



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