Sunday, May 29, 2011

two ideas……

I’m sick of seeing companies pitting communities and states against one another for tax subsidies, with the receiving community offering more than they should to get the jobs, and the home community offering more than they should because they can’t afford to lose the jobs.

Here’s a solution.  If a government body offers incentives to an existing business from someplace else, they will lose federal funds equal to the incentives or tax breaks.  That way, a business and community will make a decision based on the merits of the move and not the incentives involved. 

It’s pretty simple; taxes come from all of us.  So, to use taxes from one community at the expense of another is like us negotiating against ourselves.  That has got to end.

The second is something I’ve talked about before.  We need to think of products coming into our country as tax payers, not objects.  What will it cost to dispose of those products?  What will it cost to house those objects?  And, how much social responsibility should come attached to those objects?

Right now, we have higher taxes associated with goods made in the U.S. than those produced outside.  Each of us is required to pay FICA and Medicare on all wages paid.  That is a tax paid on the labor to make domestic goods.  We have to pay property taxes on our factories and warehouses.  We have to pay income taxes on all goods produced, which are also a tax on the labor to produce goods.

As a guy who has products shipped in from China, I’m in favor of having tariffs on all goods coming in, the higher the better.  Then, we would be forced to work domestically, instead of the current system that forces us to produce offshore. 

Because the U.S. is a consumer dominated society, we have the appetite for goods and services that is unrivaled in the world, with markets and demand already established.  It’s a total no brainer.

And, maybe that’s why it won’t happen.

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