POLITICAL PARTY POOPER

WE WON'T BE SAFE WHILE POLITICAL PARTIES ARE LEGAL

A Letter To Conservative Talk Radio Host, Charlie Sykes

Posted by politicalpartypooper on August 11, 2010

I sent the following email to Charlie Sykes, Talk Radio Host at WTMJ in Milwaukee, WI.  I’d explain the reason for it, but I think the email does a pretty good job of filling you in.  Anyway, here it is.  Let’s see what his response will be, if any.


Charlie,

I listened to your show today on the way to the airport from Two Rivers, WI.  Notably, the segment where you played the Union leader’s quotes for us regarding his belief that the deficit isn’t the main problem facing America, or even “a” problem..  Then you launched into a segment discussing the “bailout” of the public service sector, with it being paid for by tax increases on corporate America.

While I do not agree that the deficits aren’t a problem, I see them as a symptom of a much larger problem that we are still paying for.  On this issue, Charlie, you are out of touch with reality.  Your belief that these deficits are the results of massive out-of-control spending is false.  The proof?  The massive deficit increase came after the cause, not before it.  And what was that cause?  The Depression (let’s face it, if we’re not already in it, we’re headed there), the joblessness, and the meltdown of the housing sector and Wall Street.  Without all of the deregulation, or non-regulation of mortgage derivatives and Wall Street, do you really believe this recession would have been as catastrophic nationwide?  The facts are already in; this Depression was caused by the deep debt of Americans living beyond their means and above all, by the banks who gambled with American money like they were in Vegas.  Fannie and Freddie’s parts in this are well documented, but the bottom line is, the deficit is not a problem, it’s mostly a symptom, or the result of a previous cause.

Without the Housing Bubble and the following Wall Street meltdown, coupled with the tsunami of joblessness approaching, the so-called stimulus package that attempted to answer the economic collapse would not have been necessary.  Without that stimulus, our deficit would sit somewhere around $400-$500 Billion; not much different from the previous administration.  I’m not giving approval here to deficit spending, I’m just displaying the facts for you.  Yes, government spending needs to be reigned in, but the deficit is the result of a very specific set of events that have their origins even earlier than you suspect.

Here is where I answer your charge that raising taxes on corporations in the midst of a recession won’t create jobs.  My answer is, it depends on where those taxes are raised, and where the jobs are created.  There’s plenty of job creation going on right now, Charlie; it’s just all overseas, in places like China and India.  The argument against closing a tax loophole on American companies who ship jobs overseas is weak, Charlie.  In fact, you almost have to be a traitor to not understand why MOST of America wants those companies taxed higher.

I answered this problem on my blog, and you are welcome to go there and read it yourself.  I’ll leave a link at the end of this email for you.

But the point is, current law says that American companies who profit overseas still have to pay taxes on that profit…only they get to defer paying those taxes so long as that money stays out of America.  That’s the deferral part of it.  If that doesn’t sound like an incentive for American corporations to keep American money out of America to you, then you are probably being willfully ignorant.  The second part of the tax law states that American companies who earn profit overseas get a tax credit for paying foreign income taxes.  That part really gets me.  Are they American companies or not?  If they earn income ANYWHERE, it should be taxed, like the rest of us.  If I make a killing on a Foreign stock, Charlie, I get double taxed too, and I don’t whine about it.  But The Heritage Foundation just a few days ago wrote an article claiming that not only should they get a tax credit, but they should only pay taxes to the country where the income is earned.  In other words, they want the benefits of being an American company and all that goes with it, but they don’t want to pay the taxes for it.

They call it tax neutrality, and The Heritage Foundation claimed that most other nations are “moving toward it”, which is a lie.  No nation in this world operates under that system, and for very good reason.  If you eliminate the right of a nation to tax its corporations for profits earned overseas, you reduce the criteria for attracting industry in a nation to its lowest denominator; how cheap is the labor force?  That’s it.  That’s their goal.

All of that started occurring with NAFTA, and has proceeded with every free trade agreement since.  The tax deferral plus the tax credit that American companies are getting are giving them only one incentive; to move every job they can from here to overseas.  That’s why jobs aren’t coming back, Charlie.  Currently, of the corporations who hire labor overseas or outsource it, fully one-third of their workforce is foreign.  I don’t know what you call that, but I call it taking from the American Middle Class and giving it to a foreigner.  You seem to be against wealth redistribution in America.  I had no idea that you were all for spreading American wealth away to foreigners. The bill that was introduced to pay for those public sector “bailouts” only begins to fix that problem.

Go ahead and call it a tax increase. That’s what it is, and that’s what it should be.  I expect my American government to do very little, but the one thing I do expect them to do is to protect and fight for American jobs.  I expect that because I don’t want 30-40% unemployment, with half the nation living off of a safety net that raises your and my personal taxes to an unsustainable height.  You need to understand, Charlie, that the only corporations who will pay that “tax increase” are the very companies who shipped American jobs and American wealth overseas.  And the only way to FORCE them to bring some of those jobs back is apparently to tax the crap out of them, because no other reasonable request has been given attention.

Do I feel sorry for them?  Why should I?  It was their choice to ship jobs overseas and to do business there.  Why should my taxes go up so that these corporations don’t have to pay taxes on income earned overseas like I do?  The only jobs they are creating are overseas, anyway, so how does offering them a low tax rate or a tax credit loophole help America?

This is important, Charlie, and you need to understand it, before you continue to spout your Conservative “tax cuts create jobs” mantra.  Tax cuts for corporations that have, do, or will ship American jobs and wealth overseas DOES NOT CREATE JOBS HERE.  It only encourages them to ship more jobs and more of our wealth overseas.  That’s basic economics, Charlie.  You go where it’s cheapest to operate, and if the only consideration that is left is cheap labor, then you go wherever that is.  There’s far more to it than that, but I only have so much time.  Free Trade is about greed; it’s about gaming the system so that you can inflate profits for shareholders by cutting labor costs immensely.  While that’s good for shareholders, it’s bad for the American Middle Class who can’t partake in stock ownership if they don’t have jobs, which provide the money for that stock ownership. Currently, the American Middle Class is missing 15% of its jobs.  How are they supposed to get them back?  By giving tax cuts to the same companies that shipped their jobs overseas?

And Charlie, if they don’t have jobs, guess who pays for them?  You and me.  If you thought things were bad now, wait until real unemployment hits 30%.  They’ll take 50% of your wages, maybe even more.  And why?  Because you kept on allowing American corporations to ship American jobs and wealth overseas.  Pardon me, but I expect my government to fight for the American worker, not give his jobs and wealth to some foreign country where seventy-five cents an hour is the going rate.  Tell me, Charlie, how is any American worker supposed to compete with that?

That’s what this election should be about…American jobs and wealth.  That’s it. That’s where this whole mess started.  The deficit is here to stay, Charlie (and it will grow immensely) , until the jobs return from where they went.  If you don’t want to find yourself paying 50% or more in Federal taxes, then I suggest you start calling Paul Ryan and telling him to get those American companies who shipped our jobs overseas to bring them back.  Or, live with the consequences, but don’t whine on live radio about it when you could have made a difference.

Thank you,

Politicalpartypooper

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