A logical person would think that sometime during a massive recession, the worst ever to hit the United States would look at the faults of the past. Here we have New York with practically begging television commercials asking business to open over there or move over there. It’s like moving away from an apartment because it had mold, but now they promise there is no more mold so please come back. It doesn’t work like that, these people and businesses leaving are seeking permanent solutions, they are seeking lives with structure they can trust. Entrepreneurs have enough problems to worry about, never mind a sudden shock with the highest corporate tax in the world. Or a sudden shock after being open 10 years in the same area and feeling comfortable and boom, they raise the personal income tax in that state.
People get frustrated and they leave, and the difference here is they leave and never come back. How long has Detroit been fairly empty, how many businesses left NY in the last decade? These people have found and put their trust into another location that has been working well for them.
Before a change a business bank account to another bank, I sit down and have a meeting and get things in writing. I am not interested in verbal promises that are temporary, I am interested in a long term relationship where I know I can somewhat have trust in the bank that is controlling a large part of my business. If they screw me, I will be upset but most of all it will cost me time and research and effort to leave. Don’t call me 5 years later and ask me to come back because its not going to happen.
Right now everyone is talking about the issue with Burger King merging and taking off to a lower corporate tax rate country of Canada. This will cost them allot of money to do, to restructure to move certain employee’s to change over the entire headquarters, will they come back? Not a chance. Once they are gone they are gone. Will Chrysler ever come back to Detroit, no way.
These changes are permanent and none of the leaders of this country seem to care. All they talk about is more taxes and how to tax the citizens and companies they create instead of thinking how to allow the citizens to be more productive and generate a better economy. Burger King is just the tip of the ice burg. I couldn’t imagine any big company like that sticking around just for the sake of sticking around when they can save a substantial annual amount of money by leaving. You would think they the administration would immediately lower corporate tax rates in an emergency fashion unless they really don’t want anyone doing business anymore in America. Now it’s Burger King, next who? Casinos are closing in Atlantic city today, why? Not because of Foxwoods and the other Indian reservation casinos, but because of disposable income, there simply isn’t much disposable income anymore.
An increase of 228% of American citizens have been relinquishing the citizenship to leave altogether over the past several years. It is not that hard to understand or see that taxing everything is the wrong way to go. There are much more creative ways that allow citizens to prosper and generate far more income for the circle. This is a dead end battle that anyone who can see slightly into the future will see that the entire country is now following Detroit and NY whom both are losers due to bad decision making.
Internet tax coming soon
Now we have the strong possibility of yet another tax thrown onto the citizens with the internet, a thing everyone has developed comfort and trust in using for the last few decades.
With fewer than 65 days to act before the Internet Tax Freedom Act (ITFA) expires, we are encouraged to see more coverage of this important issue, particularly from the consumer side. As Rep. Anna Eshoo said in her floor remarks when the House passed the bill on July 15 by voice vote, “This is clearly, I think, a consumer issue. Whether for commerce, business, education, research, the Internet is an integral part of our everyday lives of the American people….we need to encourage its usage, we need to protect that usage.”
The Chicago Tribune’s Gregory Karp likewise has recognized the importance of ITFA to everyday consumers. In a recent piece in the Chicago Tribune, he writes “If Congress doesn’t act by Nov. 1, Internet service could be taxed by states and local governments, meaning you could have an even higher cable and phone bill than you do now.”
For some consumers, this could have a significant impact. The regressive nature of this tax means the extra $10-15 per month on phone and cable bills would first affect those who can least afford it and with the most to gain from Internet access.
Karp closes the piece quoting Executive Director of the ITFA Coalition Annabelle Canning, “It’s clearly billions of dollars that could be imposed on consumers…And it’s not only an issue for consumers, but for businesses of all sizes.”
Its like a never ending nightmare with these leaders. Suddenly if you own business on the internet you will be taxed, if you use the internet you will be taxed by your local cable company. Just another added massive burden on the people, the middle class and everyone who uses the internet.