Monday, August 29, 2011

The Republican Jobs Blueprint, Part 2

The full (8 pages of text) inadequate, incomplete, incompetent and insane Republican Jobs Blueprint here

Reading the republican "jobs" plan makes my head hurt.  It is filled with falsehoods, inaccuracies and irrelevant material. 
Fix the Tax Code to Help Job Creators
America’s tax code has grown too complicated and cumbersome, and it is
fundamentally unfair. It is filled with loopholes and giveaways. Congress should eliminate the special interest tax breaks that litter the code and reduce the overall tax rate to no more than 25% for businesses and individuals including small business owners. This would make the tax code flatter, fairer, and simpler. Common sense changes to the tax code will ensure that everyone pays their fair share, lessen the burden on families, generate economic expansion, and create jobs by making America more competitive.
Oh Yes, US corporations are at a huge competitive disadvantage worldwide per their onerous tax rates (Click to Enlarge)

It takes unmitigated gall to to state that: " Congress should eliminate the special interest tax breaks that litter the code"  after republicans voted unanimously in March and May to keep oil subsidies for the petroleum industry costing this country billions in lost revenue.  The same republicans who voted to eliminate medicare and replace it with an inadequate voucher system, believe that the most profitable companies in all of history need tax payer assistance. 
"At a combined state and federal rate of just over 39%, the U.S. currently has the second-highest corporate tax rate among the developed nations of the world (those in the OECD). The U.S. federal rate of 35% is nearly 10 percentage points higher than the average of our competitors"
US corporations actual tax rate as share of GDP

 The average US corporate tax rate is 25%, according to the IRS as reported in the WSJ.
"The 25.3% effective tax rate was calculated by comparing the actual taxes paid by companies, including foreign taxes on U.S. profits, to the U.S. book income."
In addition many companies pay zero taxes, including large corporations like GE, Exxon-Mobile, Bank of America.  See Bernie Sander's List of Corporate Freeloaders.  If tax rates were creating competitive problems for US corporations they would not be recording their largest profits ever.  So the republican blueprint for jobs is reduce corporations effective tax rate to the rate it is currently paying? 
Nothing in this section of the republican jobs plan holds up to even a cursory inspection.  US corporations are doing very well, they are not overtaxed.  Finally, the Republican Jobs Blueprint, devotes a  section to corporate profits stored offshore.  Already, congressional republicans are urging another tax holiday, so corporations can bring their foreign profits home at a vastly reduced tax rate.  At least the blueprint doesn't commit the lie many republicans in congress are promoting; that bringing the foreign profits back to US soil at a reduced tax rate will create jobs.  We already tried this in 2004 and the result was huge CEO bonuses and shareholder profits.  There is a plethora of evidence that the 2004 overseas tax holiday created no discernible increase in jobs growth.  So the Republican Jobs Blueprint Part 2 entails: reducing the corporate tax rate to the rate it is currently paying.  The republicans talk about eliminating tax loopholes but vote to keep tax loopholes in place.   They also feel that a corporate overseas tax holiday will bring money back to the US but will not create jobs.  Did the republicans realize that the title of this blueprint is JOBS?

Republican job blueprint grade, Part 2:

Bill Maher had this to say about the republicans:
And finally, New Rule. If you can look at a crime where everything points to one answer and not see it, you're a dumbass. And if you can look at the deficit and not see that the problem is that the rich stopped paying taxes, you're a Republican. ....

Now here's Obama's thinking, and it's a little counter-intuitive, but try to follow it. When Clinton was President, the rich paid a little more taxes, and the government had money. Then Bush cut all those taxes, and now we don't. I know it's hard to grasp, it involves subtracting. 
When did the business community in America become so sensitive that we have to treat them like some sort of rare exotic animal? Don't startle them, or they'll fly away. We need to soothe them, so they can nest here and lay their magic eggs full of jobs. Which never hatch, by the way.

Bush said his tax cuts for the rich would create jobs, they didn't. We're now being told if multinational corporations bring home their current overseas profits of $1.4 trillion, they'll only be taxed 5% on it, because we're told it will create jobs. It won't, just like it didn't the last time we tried it in 2004. Companies took the savings, and paid it out to themselves in dividends.
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