Eat The Rich!

Stephen Green (aka Vodkapundit):

We’re Number Two!

The US might have the highest corporate taxes in the developed world, but if you include all the world’s nations we drop all the way down to #2.

That’s right: The UAE has a higher corporate tax rate than the US. And only the UAE.

Although Illinois, California, and New York are all helping us to catch up!

But how bad is it, really? Take Apple. To date, Apple has no debt. Zero. And a whole lot of black: About $145 billion in the bank. The problem is, most of that is in foreign banks, because Apple makes lots of money overseas. And it has already paid taxes on those profits to the governments of China, Mexico, Germany, wherever. That money has been taxed already.

But Uncle Sam does things a little bit differently. Uncle Sam taxes the money you make overseas, just as soon as you repatriate it. Even though that money has already been taxed.

Maybe you’ll think I’m crazy for saying this, but I don’t even like to get taxed just one time, much less twice.

So Apple, the company with record profits and zero debt, is engineering the largest corporate bond sale in history. Apple is about to go $17,000,000,000 into debt, even though they have many times that sitting in foreign banks.

What they’re doing in essence is borrowing against their overseas holdings to finance its capital rewards program here in the United States.

Because it’s a helluva lot cheaper to pay investors 5%, give or take, than it is to pay Uncle Sam 35%.

Now any other country — certainly every sane country — would shake Tim Cook’s hand and say, “Nice job, selling all those phones in China. Now why don’t you bring that money back here where it belongs?” And then Cook would do just that. Instead, his company has to issue debt to pay for the profits he can’t afford to bring back home, where it could be financing all kinds of new jobs.

This is what Democrats call “tax shelters for millionaires and billionaires.”

Some people have a lot of money. That’s because capitalism is kinda like a lottery, only with better odds of winning. In a lottery everybody pays in but only a few get anything back. In capitalism, everybody who participates in the workforce gets something back. The only people who lose are the ones who invest money and lose it. “Failing to win” is not the same as losing.

The “problem” is some people win a lot more than others.

Let’s say you’re unemployed and homeless. Then you meet this senior citizen named McDonald who has a farm. Old McDonald tells you that if you work for him for 10 months he will pay you $1,000 per month now and $20,000 at harvest time. Meanwhile he will let you live for free (if you want to) up in his loft, and his wife will feed you three meals a day.

You are broke, homeless and hungry so you take his offer. It’s just the two of you working as you help him plow, plant, weed and irrigate. Come the fall you help him harvest his crop and take it to the buyer. Each month he has given you $1,000 just like he promised.

It was a really good year and the buyer gives Old McDonald $1,000,000 for his crop. How much does Old McDonald owe you?

a) $20,000
b) $20,000 plus a nice fat bonus
c) $500,000
d) I am suing that cheap slavedriving bastard for exploiting me and making me live in sub-standard housing!

The correct answer is “a” – Old McDonald owes you the wages you contracted for, nothing more.

Capitalism isn’t perfect, but it works. For most of human history “prosperity” meant “not starving to death”. Even prosperous people often went hungry before winter was over.

We do need a safety net for children, the old, the disabled and the temporarily unemployed. Yes, I am worried about the undue influence caused by concentrations of wealth. But killing the golden goose is not the answer. Wealthy people need us to buy the products their factories make. They also need us to work in those factories to make those products they want us to buy.

When I was a kid I was told to eat my vegetables because there were starving kids in China and India. Now I’m supposed to worry about China and India stealing our jobs. I guess we’re supposed to let them starve.

Let me close with a favorite quote from Lazarus Long (Robert A. Heinlein):

Throughout history, poverty is the normal condition of man. Advances which permit this norm to be exceeded — here and there, now and then — are the work of an extremely small minority, frequently despised, often condemned, and almost always opposed by all right-thinking people. Whenever this tiny minority is kept from creating, or (as sometimes happens) is driven out of a society, the people then slip back into abject poverty. This is known as “bad luck.”

About Myiq2xu - BA, JD, FJB

I was born and raised in a different country - America. I don't know what this place is.
This entry was posted in Economy, Taxes and tagged , . Bookmark the permalink.

46 Responses to Eat The Rich!

  1. myiq2xu says:

    In this horrible place we call “America” if you are unemployed and homeless you can probably find food and shelter without having to steal it or work for it. You may not have anything but then again you aren’t working or paying for anything either. 0=0

    If you get a job you will have money. With money you can buy stuff. The more money you make, the more stuff you can buy.

  2. DandyTiger says:

    Fucking old McDonald and his fucking animal sounds. I’m suing his ass.

  3. foxyladi14 says:

    He did live up to his contract 🙂

  4. myiq2xu says:
  5. myiq2xu says:

    FWIW – I am always leery of anonymous sources.

  6. yttik says:

    American capitalism has done an excellent job of redistributing the wealth. We all benefit off the labor and wealth of others, in ways that far exceed our means. If I were left to my own devices, I could probably produce a lean-to, some chicken eggs, and a garden. Forget plumbing, electricity, cars. I’m pretty talented, but from my own efforts alone, that’s about the most I can manage. In order to have the standard of living that we’ve all become accustomed to, we need millions of other people creating, producing, and paying taxes.

    If you ever take the time to recognize the amount of labor that went into your lifestyle, it’s pretty amazing. Plumbers, electricians, roofers, loggers who cut down the lumber for your home, sawmills, truckers that bring materials. The people who built the roads and bridges you drive on, those who invented and built the cars you drive. Mechanics who service them, oil rig workers and refiners who produce the gas. Farmers who grow the food, distributors, grocery clerks.

    The truth is, left to our own devices none of us can actually work enough to pay back all the labor and wealth that we all already benefit from. It’s a bit like that “socialism” people think they want. “From each according to his ability, to each according to his need,” is what we already have.

    • DeniseVB says:

      This country does give everyone the same opportunity to achieve success and build wealth, that’s what’s so great about her. I’m glad we have the safety nets for the unfortunates because no one needs to go hungry in such a rich, bountiful homeland.

      Now if we can only get our government to leave well enough alone 😀

  7. Please, please stick to the important news and quit going down these useless, pathetic rabbit trails. For instance, did you know earlier this week an NBA player courageously announced he is now gay? Wow!

  8. DandyTiger says:

    Just because:

    • HELENK says:

      Megan Kelly just brought up some good points about the three arrested in the Boston bomb case. The FBI put out the brothers picture around 5PM by 6PM the three met on campus and went and took evidence from the younger brother’ s dorm room. How did they know to do that? A lot more to this story then what has come out so far.

      If the bombers had planned a July 4th attack but did it earlier did the three know about the first planned attack but not know about the bombs being ready early and the decision to use them at the marathon?

  9. HELENK says:

    I guess it is alright if you are crazy. 30 DAYS IN JAIL. for what he did he deserved more time

  10. myiq2xu says:

    I bought me one of those soft camo jungle hats at WallyWorld for when I work in the yard (my fair skin is very sensitive) and I discovered that if you soak it in water then freeze it it feels really good on a hot day.

    Just a tip.

  11. myiq2xu says:

    Here’s another of my pet peeves (it’s a long list):

    I work in the yard, getting all sweaty and dirty. I come in, take a nice hot shower and put on a clean shirt. Five minutes later I spill salsa on my shirt.

  12. myiq2xu says:
  13. DeniseVB says:

    This young girl is being charged with a crime for doing what the Gosnell-like clinics tell you to do. Had she only gone to an abortion clinic…….it’s a pro-life site, but you won’t be reading this anywhere else I’m sure.

  14. 49erDweet says:

    Valley Springs, CA, child murder Friday night update:
    1. The “second witness” who originally claimed to see a similar appearing suspect leaving the neighborhood around the time of the crime, has recanted, and is no longer deemed credible.
    2. The weird Placerville child kidnapper arrested Tuesday is still being checked out but is thought by investigators to “not be involved”.
    3. No results yet on the DNA and other evidence from the crime scene. That’s all still pending.
    Sorry, but this once more looks really bad for someone in the little girl’s circle of family and friends.

Comments are closed.