Saturday, February 09, 2008

An Empty Promise

The corporate tax rate is nothing more than an empty promise. Think about it: the ASG stands to pocket a whopping 44% from foreign corporations.

So let's say a non-U.S. business makes a $1 million in profit. The ASG would get $440,000, and use that money to promise voters things like education, healthcare, pay raises or anything that helps to win an election. The government, with its magical figure of 44% (is there some reason it's not 45?), will take care of the people's welfare.

The only problem is that foreign corporations are not stupid enough to come to our territory just to get ripped off. So instead of attracting more competition and more investment that will diversify our economy, lower prices, add jobs and raise wages (and thus empowering our people to take care of their own welfare), we end up with 44% of nothing.

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