Tax Inversion and Patriotism
Several Politicians who like to spend more than the government takes in as tax revenue recently made statements that demonstrate how confused and wrong they are.
A topic of conversation among the dazed and confused in office has been “tax inversions”
The United States taxes citizens and corporations on income earned anywhere in the world. A large corporation which is based in the US and does business in the US and other countries is taxed on the business income that is earned in other countries.
That’s how the tax laws are written and that’s how deep into the pockets of big business our government gets. It seems a bit greedy to me.
Basically a tax inversion is a change in status of the company where the US government can no longer tax the business’s income in other countries. That sounds like a sound business move to me. In a free market economy a business exists to make profits to enrich the owners or shareholders, not elected empty suits who want more of our money to misspend!
I found a definition of tax inversion online in an article by Kathleen Pender:
“A U.S. company reincorporates overseas by getting acquired by a smaller company in a country where the corporate tax rate is much lower than the top U.S. rate of 35 percent. Generally, the U.S. firm’s management and operations remain in the United States, but it is no longer taxed on income earned outside the United States. It still pays taxes on income earned inside the U.S., but it gets easier to minimize that tax.”
Our elected empty suits are calling this maneuver unpatriotic and taking advantage of a loophole. I want to emphasize the thought process of the elected empty suit.
The business is in business to make profits for the owners of the business. That’s why they put their capital at risk to create a business. They do not exist to pay exorbitant taxes to support the tax and spend practices of professional elected empty suits. Minimizing expenses and maximizing profits is the principle job of the men and women who are running that business.
Patriotism is the devotion and loyalty to one’s country. Managing a successful company and maximizing profits is not unpatriotic. Let’s also highlight that the profits in other countries, not the profits in the US, are the profits shielded from the greedy elected empty suits.
It is not a loophole in the tax laws when a company manages their business in a way that the US government hasn’t written tax laws to cover. Essentially a tax inversion takes an overseas part of a business and converts it to a foreign company in a foreign country.
They become exactly like a small Italian butcher shop in the bowels of Naples. The US government cannot tax that butcher shop. When a US based multinational manufacturer of high end widgets allows its Italian branch to be acquired by that small butcher shop in the bowels of Naples the US government can no longer tax the bejesus out of that US based multinational manufacturer of high end widgets for the profits earned in Italy.
Identifying this as unpatriotic act shows how the mind of the elected empty suit works. The elected empty suits sees the primary purpose of a business as the willingness to give up profits to taxes. They cannot see that the purpose of business is to make profits. In their minds profits are evil.
Tax payers hate to pay taxes. Hard working tax payers are tired of supporting the tax a spend practices of elected empty suits. Elected empty suits promise free stiff to voters to buy the love and affection of voters. The cost of that practice is passed on to the tax payers, tax payers are getting tired of carrying the burden of the promise of free stuff to get votes.
Individuals and businesses are entitled to keep a larger portion of their hard earned money. Government is supposed to be limited and far less intrusive than it currently is.
We MUST start voting for better elected empty suits, this time let’s find some who want to cut spending and cut taxes.