Beyond Tea-Party Somnambulism!

Posts tagged ‘business’

9-9-9…I’d rather have a pizza!

At first blush, almost any plan looks better than the jumble of rules, regulations and loopholes of our current tax code. Unfortunately, the proof is in the pudding, as they say, and when you run Herman Cain’s plan in various scenarios, it just doesn’t work. In order for a plan to be truly effective, it needs to be run in every scenario possible, with positive results. This ‘plan’ is especially ineffective in most scenarios and actually INCREASES taxes for most Americans and many businesses. EX. http://www.washingtonpost.com/blogs/fact-checker/post/herman-cains-misleading-pitch-for-the-999-plan/2011/10/12/gIQAHszPgL_blog.html

Cain’s plan makes no distinction between profits and revenues for a business…so, if a company has revenue during the year, but still has a loss (which many businesses do for their first few years), they STILL have to pay the Sales Tax 9% AND the Corporate tax 9%, for a total of 18%…even though they show a loss!! How do you think THAT will fare with business owners? I’m one of them and I would NOT be happy!

9-9-9 May Be A Good Price for A Pizza...But It Doesn't Work for A Tax Overhaul!

Also…right now, everything a company invests in its business is tax-deductible, including worker salaries…not so under the Cain plan. The figures show that companies (especially small companies) will pay more under Cain’s plan than current. For instance, if a company has capital expenses now, they’re deductible. Under Cain, they’re deductible ONLY if the purchases are for products made in America! Sounds really good until you realize that we are a world economy today and that there are no (or very few) semiconductors or integrated circuits (and other computer parts) that are made in America. Without those deductions, MOST companies would go bankrupt, being unable to deduct their product & inventory (cost of goods) purchases…they just couldn’t get by without the deduction, and then add 18% tax on top of that (corporate income 9% and sales tax 9%). EXAMPLE: if a company wants to buy 500 Apple computers because of expansion, would they be deductible because they are being purchased from an American company? Herman Cain’s answer to that very question is, “Ahhh…I don’t know!” LOL. “I DON’T KNOW????” Mr. Cain, you wrote the plan…if you don’t know, who does?

Sorry, on a purely financial analysis, Cain’s 9-9-9 plan is untenable and will drive businesses into bankruptcy and lose more American jobs than you can imagine! If someone out there has a different analysis, I’d love to see it. BTW…if a Democrat had proposed this plan, the right-wing would be up in arms against the “anti-business” socialist who wants to destroy business in America!  

As another aside: Cain’s preference for American goods only, would be a direct violation of the many international trade agreements that we have signed over the decades. Sure, we could say, screw the agreements…BUT, then, America would not be able to sell our products overseas…then what!?? Sometimes, what seems so simple is just that…simple…too simple and impractical.

Rich Lowrie - economics advisor to Cain - has no economics degree or experience! He's a Wells Fargo financial planner!

Life…and economics…is more complicated than that. THAT’S the problem with Cain’s economic advisor…he has none! The only adviser Cain has been willing to mention by name —Rich Lowrie –  is a wealth manager for a division of Wells Fargo, and according to his LinkedIn page, holds an accountancy degree from Case Western Reserve University. Lowrie also spent three (3) years on the advisory board of the conservative third-party group Americans For Prosperity. Not totally surprising is that the 9-9-9 plan that Lowrie came up with was actually co-opted the tax system from the Sims videogame!!  I think Mr. Lowrie (AND Mr. Cain) are operating a little out of their league!  But, I’ll leave that for you to decide.

Government Creates “Underclass” For It’s Own Purposes

The following was submitted by Al Kappenberger, from the Coalition of Eastern Shore Progressives:

Some thoughts on corporate exploitation and creation of the “underclass worker”, who take American jobs:

Consider how our government, being totally controlled by corporate money, will use money to further its own ends. It will always utilize every legislative avenue and public relations resource it can control, to perpetuate the belief that undocumented workers must be identified and deported, in order to prevent them from taking jobs from American citizens, who could do these jobs themselves. This is willfully creating an “underclass” in America.  Consider, too, that you hear all too often of businesses hiring undocumented workers with little or no attempt to verify their legal status. Law enforcement regularly looks the other way.

I believe there is more going on here than what would seem obvious.  You should also consider why it is that the undocumented worker will be hired over the legally documented worker, with similar qualifications. The obvious answer is that they will accept work for far lower wages. Why? It is the very fact that they are an illegal “underclass”,  having no legal rights or political power, that keeps their wages down. In truth, this actually gives this “illegal underclass” a form of  “power” that allows them to take a job from someone who expects to receive a higher pay.

It is in the interest of the business, who use unskilled workers, to do everything they can, to see that “undocumented” remain an underclass. If, on the other hand, the “undocumented” were treated the same as citizens, with full access to all services, and with complete access to petition our government, their wages and status would then rise to equal that of the rest of us. The “undocumented” worker would eventually loose this “power” to take American jobs for lower wages.

As I see it, doing everything the government and business can do to perpetuate an underclass to exploit, is the very thing that is allowing them to take American jobs! Every undocumented worker is a “person” and part of our economy, in every way.  All each one lacks is a piece of paper identifying that he is a US citizen. What makes him  a member of the underclass is nothing more than where he happened to be born!  Examples of these efforts on the part of our government, to perpetuate this exploitable underclass, is the move to deprive them of something as basic as a drivers license and the outrageous “papers, please” legislation being promoted in many States. These are not efforts to protect the “legal” worker, but rather, are parts of the continuing effort to perpetuate an underclass for business to exploit! An occasional raid by immigration officials, to round up and deport a few undocumented workers, is a necessary part of the strategy!

Denouncing 6 Big Republican Lies!

EVERYONE NEEDS TO SEE THIS VIDEO!  It explains, in plain language, why the lies being told by the right-wingnuts need to be rejected by all of us.  The GOP strategists continue to lie to their “limited information voters” who need nothing more than a half-truth, cliche or metaphor, sounding patriotic, to make a decision. These voters fail to ask questions or perform the research to uncover the truth that will show the simple-minded drivel being expressed by people like Perry, Bachmann, Paul and yes, even the most “normal-sounding” of all the wingnuts, Romney!  They are leading this country down the path of a theocratic oligarchy! As Reich says in this video: We cannot become so cynical that we give up, throw in the towel and allow the wingnuts to win. It will put us all back into the 18th century, where royalty, the church and the rich held power over the poor. By giving up, we give our children and grandchildren a future of submission and scraping to survive, while the rich control the world!

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