The Pardu

The Pardu
Watchful eyes and ears feed the brain, thus nourishing the brain cells.
Showing posts with label Trickle-down/Supply Side Reaganomics. Show all posts
Showing posts with label Trickle-down/Supply Side Reaganomics. Show all posts

Friday, August 8, 2014

Connect The Dots USA: Corporate Tax Dogers

On August 7th 2014, I published a piece related to President Obama's position on corporate entities that deploy strategy involving moving their corporate offices (with all key employees and administration) to overseas locations. "Corporate Inversion," as  a typical example of American capitalism is factually despicable and existentially unfair. As Obama stated in "they are gaming the system." Not only is the practice deeply unfair, the strategy also reduces US jobs. Do you think corporate headquarters in foreign locations will lead to job offers for the thousands who work in various management and administrative roles?  No, those jobs will go to English speaking foreign workers from local labor markets.

Yet, Mitt Romney thinks, "corporations are people my friend." 

A paradigm not unfamiliar for an elitist who has earned a quarter billion via venture capital "corporate takeover" and resell of operations. Resell of operations inherently means consolidation of operations and mass reduction in acquired company employees. As we all know, "To the victors go the spoils." Romney's "corporations are people" is as insanely insensitive as his Boca Raton "47%" solicitation from very wealthy dinner guests.

Most large US corporations compensate their CEO's at obscene and opulent levels, while compensating employees in a highly disproportionate level. A quick look at three top US corporations with operations in a middle-sized central US city (Cincinnati), provides a clear picture of how "they" earn and how "we" earn. The disparity is stark and yes obscene.

Ah, but the CEO is so integral to the success of the corporation!  Alas, a reality that perpetuates decisions to flee the Nation for tax futile oversea locations.  If you are not aware corporate taxes (paid to governments) is a key area of corporate strategy and planning you should do a bit of reading. The CEO has at this (Most are men) disposal corporate tax lawyers who run rings around federal tax lawyers and they have the advantage of political indifference. Factually, the CEO has a political party (the GOP including Libertarians) who has a mission of tax reduction as the key strategy for developing a healthy economy. The mission is flawed based on both empirical study and via experience (See Trickle-down/Supply Side Reaganomics). Perpetual cutting taxes as key to federal austerity measures has proven to be an oasis-like failure. It is frankly, analogous to seeking a "compassionate" conservative in a world where none ever existed. 

Yet, the CEO continues to charge his strategic planners with strategy to increase corporate profitability. Connect The Dots has published a couple of graphics that delineate the fallacy and ridiculousness of corporate tax dodging.

Read more after the break below