2. Obama: taps on tax evasion to bring jobs back to the US – quick thoughts May 20, 2009Posted by @Karen_Fu in Economy.
Tags: keeping jobs at home, obama, protectionism, tax evasion, world economy
Returning to quickly add the 3rd part of the post as promised last week. I decided to post the 3rd instead of the 2nd as this should be really mentioned earlier. I’ll post about green design next week.
3. US President Obama’s recent handling of the tax evasion problems in the quest to keep jobs at home (US).
Sometimes when I think about the current situation, I cannot help but to feel a sense of sadness. We make things so complex that we need to resort to even more complicated means to get the system working again. Tax evasion in a time like this would probably drive the economy in to a spiral of protectionism. It is just normal to protect self interests first, but what I am fearing is that it may well bit back full circle because we are all interdependent on the global stage. I see this as actually a double taxation and a line of free trade agreement cuts and all. As a resourceful establishment, a cut in FTA should prompt one to shift gears and move on to new enterprise before the actual curtail of FTAs. The problem I see this attempt of moving the MNCs back probably would not add much help to revitalise the US economy which is currently the largest in the world. A poor US economy does no one good. Feel free to discuss…
I will post this over from my Karenfusblogs.wordpress.com.
Over at Facebook, C.Sven posted an interesting link about Obama Proposes $190 Billion Tax Increase on Companies (Update4)
I thought it was an interesting topic for discussion. What would you think this rise in tax would bring about ?
I am also wondering about the manufacturing industries. I would have thought a lot of US MNCs may have to cut down their global scale since the tax comes in. True that you can evade tax, but I doubt they could totally evade it, so higher operational costs to these US firms.
What I am worrying is that banks will suffer. It really looks like it. If double taxation really kicks in, companies and individuals have less to put in the banks. Isn’t that directly effecting the whole economy worldwide ?
Maybe I am wrong to say this, but I thought they should keep corporate tax low and make the companies do more hiring. What I see is that tax of this kind is going to reduce employment which will add to the viscous cycle of less spending etc.Came across a couple of blogs and website and I really like Robert Reich’s blog posts on his thoughts on the current economy crisis, and how the US should be tackling it though I do not exactly agree to all. His post on Obama’s first 100 days attracted my attention. Personally we need some more time to see how the stimulus would work. Though Obama’s plan to bring the funds back to the States, there is also a possibility that this may cut down companies competitiveness as costs would increase. If the 2% in the States for corporate establishments were that attractive, then why would these companies station off the US shores ? As an outsider, I am curious how the US system works. To me, the culture is different. During the Asian economic crisis about 10 years ago, many Asian countries were in a financial wreck, notably South Korea, Indonesia and Thailand. Singapore exacped the crisis relatively unscathed because it is small and much easier to regulate and control. In the US, I feel the system is very much more complicated and political in nature. Passing a law off needs a lot of consensus, and that takes off time to pass crucial law to implement fast. Whether anyone wants to admit it or not, the state of the US economy affects the world too. I do hope the steps implemented in the States are going to lead us all out of this chaos. Quick thoughts for now.