LET’S NOW TAX EARNINGS IN FOREIGN COUNTRIES-TAX TREATIES NOW CALLED LOOP-HOLES BY NEW ADMINISTRATION

The new administration now wants to usurp tax treaties with the worlds industrial countries as well as all others, by taxing the earnings in those foreign countries as if they were to be US earnings.

It would stand to reason, that all the other countries with such treaties would then tax the US earnings of their multi-national companies, and so a whopping tax increase for all multi-national corporations, both in the US and abroad.

Under most tax treaties, the profits earned in a foreign country are taxed BY THAT COUNTRY. Sounds fair, does it not?

Those profits are NOT taxed in the USA, since they are not earned in the USA. However, when those profits are brought to the USA, they are taxed at the USA rates with a credit for the taxes paid offshore.

Now the administration has called this “tax loopholes” and “tax havens” instead of LAWFUL compliance.

Nuts, have these guys even read or learned what a TAX TREATY is, and why it exists?

Probably not, just great words to make it seem like the multi-national corporations are not following the law, that they are cheating the tax man…..NOT TRUE, not even close.

What often happens is that a USA based multi national corporation may actually make more profits in the foreign countries, thus helping to support losing operations domestically. Without those profits overseas, the domestic operations may be closed.

So, will this big talk of tax avoidance help employment here?

No.

Another great plan by the government to cut employment in the USA, based on the principle of unintended consequences.

Also, the total; disregard of the tax treaties is just adding to the administration’s total disregard of the NAFTA treaty as well which has already caused a backlash due to the USA’s unilateral disregard.

STOPPING FREE TRADE, VIOLATION OF AGREEMENTS, NOTHING NEW FOR NEW GOVERNMENT; BUT THERE IS A COST-TO ALL OF US!

Well here we go again.

It is said that every day that Congress is in session, we lose some of our rights and liberties…it’s worse than that, this year we also lose a lot of money-$1 billion a day was spent by Congress so far this year!

The new administration has now openly, and with impunity violated and abrogated its obligations under the NORTH AMERICAN FREE TRADE AGREEMENT with Mexico, by closing access to deliveries by Mexican trucking companies who can deliver on the same truck directly to customers, without off loading at the border, then re-loading and having the goods cost more to deliver.

Safety was never the issue since the Mexican trucking companies have proven themselves to have a better safety record than American companies.

Why is this administration hell bent on abrogating contracts? First with the AIG employees, that they agreed to (now claiming that they did not read THE CONTRACTS FIRST). DO THEY NOT HAVE ANY LAWYERS WORKING FOR CONGRESS, AND ARE THEY NOT ALMOST ALL LAWYERS ANYWAY?

Now they just decide to pander to the Teamsters and cancel an international Agreement. That does not speak well for the word of America.

What will they simply decide to cancel next?

They are trying to cancel mortgage agreements for debtors, they are trying to cancel employer secret ballots, they even unilaterally wanted to cancel the agreement that the VA hospitals and health care would be provided to sick and wounded soldiers-they were to pay for their war injuries themselves!

Who are these people that have been elected?

Are they all idiots?

The administration has said things like,”we will emerge from this recession stronger than ever.”

Huh? How does that work?

You first weaken the country’s industry though stupid actions like the violation of the NAFTA agreement with Mexico, and now already Mexico has retaliated by slapping 89 exports to Mexico from the USA with tariffs.

Goods from 40 states will be affected, some $2.4 billion worth of trade, possibly destroyed.

Is this a way to keep jobs in America?

Hey is there nobody with any brains left in Washington, D.C.?

Now all these sellers will certainly face instant competition from foreign sources that will easily replace those goods, and probably at a lower price since the added tariffs will add from 10% to 45% to our goods cost.

This action virtually guarantees lower employment in America.

So how are we going to recover, and come back even stronger through this action?

Look at what will be affected-table grapes, 45% duty, Christmas trees from California and Oregon, New York will lose its $250 million a year business of precious metals jewelry shipped to Mexico, Wisconsin’s scrap battery industry ships $120 million worth, and 40 other states will suffer the loss of $2.4 billion in trade.

The sponsor of the bill, North Dakota Senator Byron Dorgan, just ruined his state’s oil seed export business, as 80% of its production goes to Mexico.

These exports represent jobs, jobs that the administration says it want to save-how exactly is this going to save them?

Rest assured too, that once buyers substitute suppliers, it will not be easy if at all to get these sales back.

Hopefully, this foolish notion of abrogating contracts will end…so that we can survive the CHANGE that was voted for for America.

When the world starts to think that America’s word is nothing, they can violate any contracts they choose, we will be surprised to learn than there are many contracts out there that can also be violated by other countries that will affect the USA.

For all our sake, please watch what you CHANGE…some CHANGE is downright stupid.