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March 13, 2009
Wealth Flees the Country to Escape Looters
Tax and spend liberals have been driving anyone interested in producing wealth out of California, leaving the state on the brink of bankruptcy. Chairman Zero and friends must figure this won't be a problem for them, because you can't escape the federal Leviathan by moving from one state to another. But then, you could always take your productive activity out of the country completely…
[A] wave of energy companies has in the last few months announced plans to move to Switzerland — mainly for its appeal as a low-tax corporate domicile that looks relatively likely to stay out of reach of Barack Obama's tax-seeking administration.
In a country with scant crude oil production of its own, the virtual energy boom has changed the canton or state of Zug, about 30 minutes' drive from Zurich, beyond all recognition. Its economy was based on farming until it slashed tax rates to attract commerce after World War Two.
It still has a chocolate-box old town with views over a lake to the high Alps, but is now surrounded by gleaming corporate offices — including commodity trader Glencore and oil refiner Petroplus — shopping malls and housing developments. …
Swiss cantons are free to set their own tax rates. For example in Zug, corporate tax is about 16 percent but can fall as low as 9.5 percent for companies that do most of their business outside Switzerland. That compares with an average global corporate tax rate of 25.9 percent, according to consultancy KPMG.
If the government had any interest in ending the recession, it would slash taxes; America could be booming like Switzerland. But the Obama regime is not about to let a crisis go to waste by letting it end.
On a tip from J.
Posted by Van Helsing at March 13, 2009 6:52 AM
Comments
Will more US companies move to CHINA? Strangely they are preaching to Obama about "fiscal responsibility". Will one day Americans be fleeing Communist America for a Democratic China?
http://news.yahoo.com/s/ap/20090313/ap_on_bi_ge/as_china_us_economy
" BEIJING – China's premier didn't say it in so many words, but the implied warning to Washington was blunt: Don't devalue the dollar through reckless spending.
Premier Wen Jiabao's message is unlikely to be misunderstood at the White House. It is counting on Beijing to help pay for its stimulus package by buying U.S. bonds. China already is Washington's biggest foreign creditor, with an estimated $1 trillion in U.S. government debt. A weaker dollar would erode the value of those assets.
"Of course we are concerned about the safety of our assets. To be honest, I'm a little bit worried," Wen said at a news conference Friday after the closing of China's annual legislative session. "I would like to call on the United States to honor its words, stay a credible nation and ensure the safety of Chinese assets."
Posted by: Name at March 13, 2009 7:29 AM
This is how Ireland zoomed its economy. They radically reduced all taxes and then invited foreigners to come and be welcome.
When the EUroweenies sent them an official letter _demanding_ they raise their taxes to parity levels with the rest of the EU the Irish (gleefully) told them to pack it where the sun don't shine. Result... Ireland still has one of the hotest economies on the planet.
I wonder if there's a hidden lesson there..?? </sarc>
Posted by: chuck in st paul at March 13, 2009 7:35 AM
yes, yes, Obama can cut taxes to revive the economy but would it be fair??
All dem rich peoples be making over $75k and the po folks can't pay they McMortgages wit welfare an food stamps.
Posted by: Shooter1001 at March 13, 2009 7:45 AM
Of course, they are leaving. Look at Halliburton. They went to Dubai, because there aren't taxes. So, when does Exxon and the other oil companies leave?
http://franklinslocke.blogspot.com/
Posted by: Franklin's Locke at March 13, 2009 8:03 AM
Franklin's Locke,
they did that lo-o-o-ng ago. Exxon-Mobile only represents about 3% of world oil revenue. Add in the rest of America and you only get about 5 to 6% total of the world oil. Everyone else is off shore somewhere.
Posted by: chuck in st paul at March 13, 2009 8:46 AM
