Blackmail for Profit
The main reason for the slow economy is corporate blackmail. Many American corporations are transferring profits they earn abroad to countries with lower tax rates. An estimated $1.7 trillion in American foreign earnings are stashed overseas. Corporations say they will start investing in America when the U.S. tax rate is lowered to Ireland’s 12.5%. Imagine, American companies that grew with American resources not offered by other economies, now holding their benefactor hostage for blackmail profits. Republicans want to give corporations a tax holiday. Bringing any monies back home, say Republicans, is better than none. In other words, Republicans want to pay the bandits for stealing from your pocketbook. Republicans say that lost tax dollars would create new jobs. The last time corporations had a tax holiday under Bush in 2004, the money they saved was used to buy back their own stock. According to Warren Buffet, corporations don’t invest because they save money from lower taxes. Banks have plenty of money at historically low rates. Job creation after every recession has always come from government stimulus programs. The economy was growing strong after the 2008 stimulus, but Republican cut backs stifled the consumer confidence. Consumer demand, which accounts for two-thirds of the economy, is driven by consumer confidence. Austerity does not create jobs. The thing to remember is that corporations don’t need new jobs to make more money, especially when they can blackmail America for profit.
Richard Dorsey, Hacienda Heights, CA