The President did his weekly speech this weekend, and covered what he considers a very unpatriotic act....companies that pack up and move their headquarters out of the US....to somewhere in the world with a lesser taxation mentality.
The President would like this "loophole" to be closed off and denied to US companies. If you are US....you should base your headquarters in the US....by the logic of the White House.
How did companies come to this new strategy of basing the headquarters beyond the US border? Because the House, Senate, and previous Administrations wrote all of the rules in such a way....allowing the companies to do so.
Besides taxation....are there other benefits? Well....yeah. If your IRS or Attorney General gimmicks are told to turn up the heat on a US corporation based out of Ireland or Switzerland.....you can't just walk in with some stupid judge's order and seize all kinds of paperwork. This makes any type of corruption or illegal activity difficult to prove.
This makes a person sit and ponder. Aren't we building other various gimmicks that allow a company in California to pack up and leave the state.....because of state taxation and property taxes there? Don't we make various gun laws in Connecticut.....which encourage companies to escape their borders? Haven't we screwed up on regulation enough in Ohio and Michigan....to such a degree....that companies look for better places in Alabama or Mississippi to place their plants?
Companies....no matter what size.....from one employee to fifty thousand employees.....hate regulation, and hate having some government audit guy stick his nose into their business. It doesn't matter if it's a Slushy-drink-type company, or some cattle operation.
The President's intention is that Congress ought to fix this.....in order to make everyone pay their "fair-share" of taxation into the pot. Who comes to decide what's fair? This question is never answered in a rational way. Fair-share gets thrown around, and you come to realize that it's almost non-existent on a true definition.
Once your pot of money gets regulated and half of it is going into some government pot of money.....there's dozens of people trying to manage the function of that pot of money. None of them want to talk about distribution or how they arrived at the fairest way of gifting the money to society.
All of this....leads onto companies artificially increasing their product cost, and pretending to be a capitalist company....but the truth is simply this....because of taxation gimmicks....they all work as some "gift-organization".....helping some gift-giver from the government....gift a hundred people here and gift a thousand people there.....with a gift that you tend to feel appreciation on the gift mechanism.
Fixing this mess? No.....no one has any interest.....and with the current agenda of the White House....they've basically got no time left for working out deals for 2015 or 2016. It's that simple.
