Parasitic Delaware Compared To Ireland (Or Vice Versa)
Over the past ten years Ireland was able to attracted a bunch of low life human and corporate weasels from the EU and America who think rich people (and rich corporations) should not pay their fair share of taxes.
Well, the party is over and Ireland is busted, but Steve Forbes still thinks everybody should make like Ireland and “Tryckl” the GOP magical unicorn will descend from heaven. Confronting that GOP lunacy, Sadly No! says…
Ireland’s bubbleburst, from my equally-as-inexpert-as-Steyn’s opinion, will be worse than ours. It’s true their economy boomed, but only because of a sort of Cayman Islands effect by which so many wealthy jackasses moved money from lands of higher tax rates. Cumulative incidental investment from a mass of weasels shirking their responsibility did the trick, not ‘higher returns’ because of the alleged infallibility of the Laffer theory.
Ireland was like the Delaware of the Western World: it only worked not because it was right or because its particular structure was better or even sound, but because it was such an outlier. (The Times piece implies the relationship between Ireland and America and the EU was symbiotic; I think the better word is parasitic.) In effect it cheated its neighbors; now it’s ended up cheating itself. It too will get drastically Keynesian as it surveys the rubble, and the wealthy criminal class will then move like locusts to some other country whose government it can bribe or co-opt, unless… everybody gets together and agrees not to tax the bastards at any rate less than a certain amount.
In your face Governors Carper, Castle & DuPont.
Your disgust for our corporate allegiances in Delaware is very short sighted and shows a complete lack of the significance of what corporations do for us in Delaware.
If for example federal law was enacted to do away with the state laws on incorporation as Pres elect Obama supports Delaware would be bankrupt over night. Yes, bankrupt.
Almost 23% of our state revenues would be wiped out and we would have to tax the citizenry as New Jersey and New York do.
Businesses who move entities to low tax havens are not parasites or jerks, they are smart. Just as many people shop at Wal Mart because of low prices so do corporations seek out the best deal. Are Wal Mart shoppers parasitic?
The lesson to take away is the ridiculous tax system we use. It is onerous to monitor and impossible to comply with.
Lastly, what is the fair share of taxes for corporations? Is there a dollar amount or a per centage you have in mind?
Mike,
If our loyalty to our corporate citizens were returned you might have a point.
Unfortunately, we have learned that they come here and milk whatever they can get and then flee to the next haven, or just take the money and run, like MBNA.
Corporations have no conscience and no loyalty. Basing our economy on the belief that they do is a formula for long-term disaster.
I’m not saying that Corporations should change their modus operandi, but perhaps Delaware — and Ireland — should. Otherwise we’re just like Charlie Brown trying to kick the football while Lucy snatches it away.
And yes, our tax system is broken. Sweeping reform needs to be made to bring it back in line with some sort of progressive scale. When Warren Buffett pays less taxes than his secretary something is truly out of wack.
As far as the fair share — those who use the most should pay the most, individuals or corporations. I certainly don’t advocate going back to FDR’s rates, but the rates need to reflect the benefits derived. If my company has 5000 trucks delivering goods all across the Interstate system I should pay a higher rate than the poor moke who rides the bus to work every day.
Like everything else, taxes should be fair. I know that’s a concept that doesn’t compute with Republicans but in the long run it’s the only thing that works.
If for example federal law was enacted to do away with the state laws on incorporation as Pres elect Obama supports…
WTF are you talking about?
Rebecca –
You are missing the point here. Delaware is NOT thriving because the number of incorporated businesses haved declined. Lower number of businesses means lower incorpration fees and revenue for the state. Let’s not forget the corporate and individual payroll tax that is paid to the state for each employee (one by the employer and one by the employee).
We need to stop treating businesses like family members who disrepect us at some family function. Businesses are part of our community. Some come, and some go. But while they are here, they we need to help them thrive.
We are in a global economy and we are not just competiting for businesses to locate here rather than another state; we are also competing against other countries. Whoever offers the best value for the firm.
I am glad you brought up Ireland. Ireland has a 11.9% corporation taxation rate, compared to the punishing 35% for the United States. Our Corporate tax rate is discouraging businesses to incorporate or expand operations here. It comes to sheer cost of doing business.
The exccess corporation tax rate is complete regressive. This is why jobs that Americans did are now in the hands of foreigners.
We also need to stop punishing the American family and lower the income tax rate to a flat tax or a fair national consumption rate. The regressive taxation policies are destroying the American dream for the average family.
It is time we wake up!
Jason O’Neill,
You are a nutcase, an idiot or (likely) both. Your whole economic worldview has just been soundly rebuked by reality and you think if you clap harder you can save Tinkerbell. Hellooooo…McFly….?
The point is not to race other states and countries to the bottom of the economic barrel and compete for the sleaziest, most disloyal low-life corporations and individuals. Lower taxes is not some economic sliver bullet that can make companies “thrive” it is snake oil dummy.
Wake up. St. Ronny is dead. “The Club for Growth” turned out to be “The Club for Economic Disaster”
El Somnambulo says that Delaware’s economy literally WAS built on a House of Cards–made of plastic. The Financial Center Development Act, passed almost unanimously by Gov. duPont and the shiftless ‘leaders’ of the Delaware General Assembly, legalized usury. 18.6% interest rates. Ralph Nader, back when he was sane, was one of the lone voices of sanity begging Delaware not to do this.
Not only did Delaware rob from its neighboring states (North Dakota adopted the Delaware model soon thereafter), it enabled the precipitous growth of the MBNAs of the world by permitting them to rob from its credit card holders.
The House of Cards has collapsed. The feral bonepickers from MBNA, who doubled as ‘bundlers’ for W as well as pimps for Carper, Castle and Biden, have long since taken their golden parachutes.
Leaving those who survived to try to rescue something from the carnage.
El Somnambulo speaks truth, as usual. We’ve all be enjoying the ride on the backs of the poor credit card borrowers. As the world tilts back to something resembling fairness we’re going to have to adjust to no more free lunch.
I can hear the screams from the Republicans now.
The guy who wrote this wants to be the Governor.
“Businesses who move entities to low tax havens are not parasites or jerks, they are smart. Just as many people shop at Wal Mart because of low prices so do corporations seek out the best deal. Are Wal Mart shoppers parasitic?
The lesson to take away is the ridiculous tax system we use. It is onerous to monitor and impossible to comply with.”
Yes, let’s give corporations more tax breaks. After all, they’ve worked out well so far. What could possibly go wrong?
Can we get rid of the 35% corporate tax Republican talking point already? No corporation pays 35% tax. Didn’t Goldman Sachs (one of the financial companies) pay only 1% tax last year. They received more in bailout money than they paid in taxes.
Corporations that incorporate offshore to avoid paying U.S. taxes should be treated as if they are foreign entities – I don’t think Halliburton (incorporated in U.A.E.) should get American government contracts. There should be some advantage for companies that pay taxes and make jobs in the U.S.
As far as Delaware goes, yes corporations are part of the future. I think it is important though that we start to get a healthy mix of revenue sources. We shouldn’t only rely on real estate transfers and credit card companies for our revenue. The U.S. is in this mess partially because we became an economy that bought and sold houses to each other, without creating real value. I hope we’ll start relying on more small business, green industry, etc.
Very well said.
don’t forget Trump is trying to build I believe, the most expensive golf course in the world over there…..
I always hesistate to correct the Sleeper Who Walks, but IIRC it was South, not North, Dakota that followed us on the Usury Trail. Not even free money would entice banks to move to North Dakota.
Will my questions to Mike P EVER be answered, or will the great uniter continue to ignore them?
P.S.: This makes the fourth time they have been asked.
Can we get rid of the 35% corporate tax Republican talking point already? No corporation pays 35% tax.
Republicans do have a case here. Corporate taxes are paid only on profits (Delaware’s GRT is the exception), which leads to endless recipes for cooking the books which leads to distortions in market valuations… these distortions in the fair value of a company are part of the system by which the rich get richer by screwing the rest of us.
Plus, not that I am shedding tears over it, but they do have a point about corporations passing their taxes on to the consumer.
So, I’m thinking it would be OK to eliminate corporate taxes, and replace the revenue with increased taxes on individuals who benefit from corporate returns (dividends, capital gains, top level salaries and bonuses).
Geezer wrote:
“I always hesistate to correct the Sleeper Who Walks, but IIRC it was South, not North, Dakota that followed us on the Usury Trail. Not even free money would entice banks to move to North Dakota.”
Back in the day, when El Somnambulo toured with the PLWF (Plumb Loco Wrestling Federation), and was feuding with Teletubbymundo, many shows took place in armories in N & S Dakota, Idaho & Montana.
El Somnambulo could never tell them apart. The states or the armories.
It’s OK, El Som…very few people can. Only those special-elite, chosen ones can, of which I, sadly, too, am not a member. *sigh*
One can question the morality of legalizing loansharking without attacking free markets per se.
One thing is certain: high taxes and socialism breed enduring poverty.
Look at the European example. Before WW II, Poland had a living standard akin to that of Northern Italy and Czechoslovakians were as well off as the Swiss. Decades after the war, they were on a subsistance basis and more like third world basket cases.
Isn’t socialism wonderful? This is not to advocate the cult of the ‘rugged invidualists’ that would abandon even the vestige of ‘safety nets’ but to question those whose mindless opposition to economic freedom marks them as born losers.
How’s Sweden doing?
Couldn’t your analysis of the Polish situation be explained by describing what happens when one lives in an authoritarian society?
Follow up, which one are we moving toward faster, authoritarian or socialism?
What an idiot Arthur Downs is. You have to wonder how gets through the day.