TAKE OUR QUIZ AT THE END!!
Why are businesses leaving America?
- Second highest corporate tax rate in the world
- Excessive regulations and laws that beat companies down
- Labor unions which stranglehold businesses
- The most litigious society in the world
U.S.A. favorite Job Killers:
- Too many laws and rules
- Most lawsuits in the world
- Corrupt government bought out by special interests
- High taxes
- Uncertain business environment caused by 1) corrupt government who ignores laws to reward special interests, 2) rogue President and Congress surpassing their Constitutional bounds
- Incompetent government intruding into private markets
In a global marketplace where you can start a business anywhere on the planet, ask yourself, do any of the below disincentives create jobs or keep jobs alive here in America?
- The United States has over 100,000 pages of tax laws, labor laws, OSHA laws, EPA laws, consumer laws, trade laws, patent laws, cap-and-trade laws (coming!), and 75,000 pages of new laws passed every year … you must comply with all.
- The United States has the most litigious society in the world with more lawsuits than anybody. In America, anyone can sue you for anything at anytime … and if you are found innocent, you still have to pay the expensive attorneys. America has the most expensive and only legal system in the world that punishes winners in lawsuits, favors attackers, kills innovation, turns its citizens against each other, stifles freedom to make informed choices, et cetera.
- U.S. government writes laws in favor of special interests and big campaign donors (some of whom may be your competition).
- U.S. government cronyism based on political donations could establish government grants or discounts that help your competition and harm you.
- U.S. government wants to limit your profit and your pay.
- U.S. government is considering raising taxes on small businesses that make over $250,000, $200,000, $150,000 or whatever is the current number. Okay, we have raised your taxes, now go out and hire more people! That’s like saying, okay, you got a cut in pay, now go out and spend more money!
- U.S.A. has the second highest corporate income tax on the planet, even as the rest of the world cuts their corporate taxes to remain globally competitive. Only Japan is slightly higher overall. But if you are silly enough to base a corporation in California, Iowa, New Jersey, Pennsylvania, or other states with high corporate levies, your tax rate on business income is even higher than in Tokyo. For the first time, the U.S. statutory rate is now 50% higher than the average of our international competitors, continuing a long-term trend as the rest of the world keeps reducing corporate tax rates (“America,” 2008).
- U.S. government wants to create extra energy costs for businesses, especially manufacturing via the killing of the coal industry through Cap and Trade. Subsidizing renewable energy in the U.S.A. may destroy two jobs for every one created if Spain’s experience with windmills and solar farms is any guide (Baratti, 2009).
- The actions of the U.S. government erodes the rule of law and creates an uncertain business environment:
- arbitrarily throwing out legal agreements and long-established prior practice in the name of ‘shared sacrifice’ (“Barack Obama and the Chrysler Bankruptcy,” 2009);
- government coercion intimidating creditors to give up legal rights, and cash, as part of a government-mandated tradeoff that favors a politically connected special-interest group (Neul, 2009) (Reilly, 2009) (Salas, 2009);
- attempting to pass retroactive laws that affect private business and their employees (Hitt, Lucchetti, 2009) (“BNY Mellon,” 2009);
- “by attempting to ban incentive compensation of the 25 most highly-paid employees ‘or such higher number as the Secretary of the Treasury may determine is in the public interest with respect to any TARP recipient’ ” (Senate approves Dodd’s Amendment, 2009).
- The U.S. wants to end the three offshore tax-avoidance techniques for U.S. companies such as Caterpillar Inc., General Electric Co., and Microsoft Corporation. By doing so, these companies have said that it “will make U.S. jobs more expensive … we are better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.,” Steven Ballmer, CEO, Microsof (Donmoyer, 2009).
- U.S. wants to tax foreign profits when they are earned, rather than waiting until the dollars are brought back to the United States. While this may raise more revenue in the short term, it also accelerates the trend of U.S. companies moving entirely offshore, or being bought out by Asians and Europeans so they can escape U.S. taxes (“America,” 2008).
- In the U.S., you could have a no skill, no experience government official telling you how to run your market and company.
- Through several new labor laws, the U.S. government will add more strain to America’s tort liability system, which is already the most expensive in the world and more than double the average cost of other industrialized nations (Council, 2002) (Pacific, 2006). What good are employee rights if there is no employer?
- The U.S. government is pushing for increased unionization, which tend to put a straightjacket on innovation, flexibility, and competitiveness, the very keys business needs to survive and grow. If the EFCA (Employee Free Choice Act) is passed, a federal employee could tell you what you will pay your workers! Good luck competing. As a side note: the federal employee may expect some sort of pay-off, as corruption is always in the forefront of a centralized, powerful government.
How do the above initiatives help motivate the world to bring money and invest in America? With businesses closing or leaving in mass, how do they help create and maintain jobs? When these initiatives are enacted, won’t they just kill stock values even more?
If the Congress and the President had a plan to help employers – e.g., lower the corporate tax rate without adding new government spending, regulations, cost – what effect would this have on our economy and the world’s investment in the USA?
What in the Congress and President’s plan will create real and sustainable jobs? We seem to be losing them much more quickly than we are creating them. Recent studies suggest that a quarter of U.S. jobs can be outsourced over time to other countries (Koprowski, 2009).
Unbelievably, in these uncertain economic times, the government is doing everything it can to destroy jobs.