The Heritage Foundation’s Free Trade Propaganda

Posted by politicalpartypooper on August 10, 2010

It’s called Free Trade, it ends up in the outsourcing of American jobs to places where seventy-five cents an hour is the wage.  In Conservative speak, it’s called keeping American companies globally competitive.  From The Heritage Foundation:

In an increasingly global marketplace, U.S. businesses compete against companies from around the world in U.S. and foreign markets. They compete through quality, service, and price–all of which depend on the companies’ ability to operate as efficiently as possible. Rather than exporting their products from the United States, American businesses often choose to operate in foreign countries to gain local market exposure and tap into local market expertise and existing sales channels. In other instances, companies pursue cost efficiencies. Sometimes this can best be accomplished from the United States; often it requires major investments abroad that also synergistically make U.S. operations more competitive.

U.S. businesses operate internationally to maximize their competitiveness against rival firms. And in so doing, they make their U.S. operations and workers more competitive, thus supporting domestic jobs and wages, while building profitability for their shareholders. For every worker employed by a U.S. subsidiary in a foreign country, 2.3 Americans are employed in the U.S

That last sentence is scary, isn’t it?  For those companies that used to hire only American workers, one-third of their labor force is now in Foreign Countries.  And we wonder why we have a jobs shortage?  Here is a supposedly “smart”, educated, elite think-tank-like Foundation complaining over taxes when the real issues of the economy are staring it right in the face.  The ignorance of the job losses is so blatant that it’s hard to believe it’s not willful.  They go on to say:

Under U.S. law, both the U.S. government and the government where income is earned impose tax. To reduce double taxation, the U.S. allows a tax credit equal to the amount of foreign tax paid. Current U.S. law already limits the applicability of the foreign tax credit in numerous ways, all of which result in double taxation, distorting economic decision making and leaving U.S. companies at an even greater competitive disadvantage.

Double taxation?  That’s what you call it?  It’s not just US Law.  Every Nation does it.

Here’s how I approach this:

1.  Are you an American company or not?

2.  If you are an American company, like all other American companies, you pay American taxes.  It’s pretty simple, really.

3.   Did you think that you could keep your American address, ship all of those jobs overseas, and not pay American taxes on income?

I love this line:

For decades, proposals to eliminate deferral have cropped up and been defeated. Invariably, Congress comes to recognize the harm these proposals would do to the American economy.

No, Congress comes to realize that the lobbyists representing these multi-national corporations give more money when you give them what they want.  That’s how Congress keeps allowing the deferral of taxes on Foreign income.  And by the way…a tax-credit for Foreign taxes paid…to a Foreign country?  Again, I ask, are you an American company or not?  It’s not America’s fault that you chose to do business in a Foreign country.  If they make you pay taxes on income, that’s their choice…and your problem.  You still owe a tax debt to your country.  Otherwise, why would your country allow you to do business there, taking advantage of their protection from police, fire, army, as well as all of the SOCIALIZED roads and transportation systems you use?

The choice to do business in a foreign country does not absolve you of having to pay taxes on that income you earn overseas.  But The Heritage Foundation thinks otherwise:

Income should be taxed in the country where it is earned, and only by that country. This would be an economically neutral policy that avoids distorting economic decision making.

It would also make America the only nation in the world that doesn’t tax it’s own companies on income earned overseas, and the proof is in The Heritage Foundation’s own words:

Neutral tax policy allows companies to pursue their competitiveness strategies without artificial incentives or disincentives from tax policy. Consequently, the companies are stronger, more flexible, and better able to expand at home and abroad. Increasingly, governments around the world understand this and have moved toward adopting a more neutral policy to advance the international competitiveness of their companies and the jobs and wages of their domestic workers.

“Have MOVED toward adopting”.

Translation:  They haven’t adopted a more neutral policy at all, but in the never-neverland of Conservative Free Tradeism, if you say Foreign countries are moving toward it, even though they haven’t and won’t, that makes American companies less competitive, and therefore, we must, must, must rush towards a neutral tax policy of our own, even though other countries don’t and won’t.  It all makes perfect sense, right?

Look, this is about jobs!  This entire article from The Heritage Foundation is how and why America lost so many of its jobs over the last two decades.  And now they want to remove every tax barrier to complete Free Trade.  They want to make nations compete for industry based on wages alone.  Here’s how they put it:

The President’s international tax plan is fundamentally protectionist. The theory behind protectionism is to raise tariffs and quotas to protect domestic producers against foreign goods. Behind the tariff wall, domestic producers can then charge higher prices, sustaining their employment levels.

No shit, Sherlock?!  Really?  You mean we shouldn’t want to protect American jobs?  Are you really espousing that it’s better for the American worker to not have a job than for you to pay taxes?  Are you serious?!

Blatant economic arrogance and treason, plain and simple.  The Heritage Foundation’s plan is to sacrifice American jobs so that American corporations can compete globally, ostensibly by shipping those American jobs to places where the only consideration is how cheaply you can hire the slaves for.  Except, the only way that works is if the United States does not tax the income these companies earn overseas.  So the truth is out:  The Heritage Foundation wants to outsource American jobs overseas, make more profit for American Corporations, and not pay taxes on that income, which is the exact same thing as being rewarded for betraying America by shipping American wealth overseas.  The Heritage Foundation wants us all to reward them for being traitors.

The nerve.     Ω



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