Packing it up and moving out of the U.S.

http://www.agorafinancial.com/afrude/2009/06/04/when-the-chinese-laugh-prepare-to-cry/

Well, here is another company thinking of packing it up and moving out of the U.S. over tax concerns. (about 1/2 way down)

Alcoa Aluminum.

We seem determined to make things worse, not better. Several oil companies have already announced they will relocate to Switzerland to avoid this Presidents plans for increased taxes.

So, we not only won’t get the tax increases proposed but won’t get the taxes they were paying either. Tax revenues have fallen off a cliff and yet, we seem intent on losing even more tax revenues.

Now, in defense, we have to have more tax revenues but, raising taxes won’t get them. We need a massive tax reform where the hundreds of billions wasted on “doing taxes” is eliminated so that paying taxes isn’t the burden it is now. For many businesses, they pay more in tax compliance costs than in taxes and all of it has to be passed on to the consumer for all money in a business comes from its consumers. The money for taxes, interest on debt, materials, and profits all have to come from their customers.

As long as unemployment is rising, tax revenues will fall and raising taxes could make unemployment even worse as companies leave the U.S. completely.

http://www.agorafinancial.com/afrude/2009/06/04/when-the-chinese-laugh-prepare-to-cry/

Also, in that article, read how China is tying up oil and other raw materials. They are spending dollars as fast as they can. Also, they are tying up new sources of oil and other things. This leaves the market we bid on for oil, with the declining fields.

One article I read a year ago said that eventually, tying up the supplies like this will lead to our not being able to have enough oil on the open market to cover our oil needs as well as the other nations bidding on the open market.

This is precisely why focusing on domestic oil supply and consumption is a waste of time. It has nothing to do with the real supply and demand for oil/energy. Between the coming inflation and the deals being made by other countries to lock up energy supplies, the prices will skyrocket.

Related Posts:

• Do not equate what the market does to the Depression we are in.
• What do you want to pay taxes for?
• Who is going to buy the products we need for a recovery?
• Let’s try to put things in perspective here, using the NASDAQ as an example:
• If money is moving OUT of equities, and the market goes UP……….hmmmmm

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