US Corporate Taxes are too high
- Thread starter faethor
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Now wait just a second on that idea. If corporations are fleeing not only does their Tax flee but so would the corresponding GDP. Their GDP moves to say China instead of the US and their Tax moves as well. Thus, a company leaving shouldn't, in theory, impact the % of GDP.
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Corporations may not be "fleeing" per se, but they are more mobile than people and can move big chunks of themselves around. The GDP can be realized anywhere including in the US. In fact, because of the way things are measured a good chunk of US GDP is not produced in the US.
Also, as companies become transnational, they can use accounting tricks to realize their profit anywhere they want. By buying internal supplies from themselves they can bill to one jurisdiction as a cost of business deducting from earnings there and then realize the earnings where taxes are less.
It's simply because governments failed to keep corporations to manageable sizes and now many of them are bigger than the most governments and, in fact, with their trade organizations, transnational corporations form the largest part of global governance. Due Free Trade treaties and other similar undertakings, inter-corporate agreements override local legislation.
The governments we vote for don't work for us and the real world government isn't elected.
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@Fluffy
You've head the nail on the head. This nation is 'of by and for the PEOPLE'. When businesses are too big to fail. When tax policies allow run arounds. When the government fails to properly restrain industry it gives up it's power. And we've seen it in action. Right-Wingers the gov can't take away your guns. Though in Katrina the private security companies did exactly that. This is but another example that power is power from any source. You can choose to give the government the power, which is somewhat constrainable by the electors. Or you can choose to give the business the power, which is at best constrainable by about 3-4 people on the Board of Directors. Really the choice is ours.
You've head the nail on the head. This nation is 'of by and for the PEOPLE'. When businesses are too big to fail. When tax policies allow run arounds. When the government fails to properly restrain industry it gives up it's power. And we've seen it in action. Right-Wingers the gov can't take away your guns. Though in Katrina the private security companies did exactly that. This is but another example that power is power from any source. You can choose to give the government the power, which is somewhat constrainable by the electors. Or you can choose to give the business the power, which is at best constrainable by about 3-4 people on the Board of Directors. Really the choice is ours.