A tax lesson

[KpAtch3s]

As I have always thought, if the US lowered tax rates and removed all the social programs we experience an explosion of growth. This would bring us out of the recession very quickly and corporations from around the world would begin to move their businesses back into the US. Insourcing? Because of the amount of spending that would incur I also believe the government would realize increased income. We need to create a truly free economy by removing all tariffs and subsidies. The growth in the US would explode.

Here Is an article written in 2004 about Ireland when it cut its corporate tax rate for both foreign and domestic to 12.5%! It's basic economics. Subsidies don't work!!!

http://www.fee.org/pdf/the-freeman/sigfrid0404.pdf

The link is a PDF

 

[Alien Allen]

I am too lazy to do it but a follow up to see how things are 5 years later would be helpful. If the trend continued it would make that article that much more informative and thus an indictment of the US tax code and our nanny state

 

[kelvin070]

I just hope taxes are kept as high as possible. Outsourcing is the name of the game. More chapter 11 filings with insourcing cuz your wages are too high.

 

[kelvin070]

As I have always thought, if the US lowered tax rates and removed all the social programs we experience an explosion of growth. This would bring us out of the recession very quickly and corporations from around the world would begin to move their businesses back into the US. Insourcing? Because of the amount of spending that would incur I also believe the government would realize increased income. We need to create a truly free economy by removing all tariffs and subsidies. The growth in the US would explode.

Here Is an article written in 2004 about Ireland when it cut its corporate tax rate for both foreign and domestic to 12.5%! It's basic economics. Subsidies don't work!!!

http://www.fee.org/pdf/the-freeman/sigfrid0404.pdf

The link is a PDF

Ireland is a minnow compared to the asian tigers Singapore, Hong Kong and Taiwan

 

[SgtSpike]

I am too lazy to do it but a follow up to see how things are 5 years later would be helpful. If the trend continued it would make that article that much more informative and thus an indictment of the US tax code and our nanny state

Graph here: Ireland - Swivel

They started with the economic overhaul in 1987, and you can see from the graph, things really took off a few years afterward.

Also, here's a quick glimpse at the article. Amazing how well a free, low-tax economy can work, isn't it? That's how the US grew to be so powerful so quickly up until recently, and it's how Ireland became an economic powerhouse (with size considered) in the last 20 years. Too bad the US is now headed down the path of high taxes and low growth.

Ireland’s contrast with the rest of the EU is
stark. In the EU, unemployment is close to
10 percent. The tax burden is heavy. The
labor market is massively regulated, and
social mobility is low. Meanwhile, Ireland
has moved in the opposite direction and has
even outperformed many of the east Asian
tiger economies. The unemployment rate is a
third of what it was only a few years ago.
Foreign companies stand in line to move in;
and to meet the demand for labor, companies
as well as the authorities encourage
immigration.

 

[Alien Allen]

I just hope taxes are kept as high as possible. Outsourcing is the name of the game. More chapter 11 filings with insourcing cuz your wages are too high.

wow that is spoken like a troll :thumbdown

 

[kelvin070]

wow that is spoken like a troll :thumbdown

Sorry. I am straight talking type. I dont sugarcoat and beat around the bush under the pretext of diplomacy.

 

[KpAtch3s]

Sorry. I am straight talking type. I dont sugarcoat and beat around the bush under the pretext of diplomacy.

I was going to ask if you were being sarcastic, but it seems that's what you really believe. Are you actually located in Singapore? If so, then I can see why you think that. You otherwise make no sense.

You think our wage are too high? Erm, ok?

 

[Alien Allen]

Sorry. I am straight talking type. I dont sugarcoat and beat around the bush under the pretext of diplomacy.

so you want us to lower our standards

so as to get closer to those with less

you might get your wish with the moron in the White House

 

[kelvin070]

I was going to ask if you were being sarcastic, but it seems that's what you really believe. Are you actually located in Singapore? If so, then I can see why you think that. You otherwise make no sense.

You think our wage are too high? Erm, ok?

I am not only located in singapore but born and raised in singapore and a singapore citizen who never been to US. Not being sarcastic but its the harsh truth. There are 1000s of american companies in singapore. This is a globalized world with fierce price competition. Without outsourcing american companies will lose out especially to the japanese who can match quality and prices are far cheaper. The primary reason why US companies outsource is cuz ur wages are too high and you simply can't compete with rivals.

 

[canidae]

I am not only located in singapore but born and raised in singapore and a singapore citizen who never been to US. Not being sarcastic but its the harsh truth. There are 1000s of american companies in singapore. This is a globalized world with fierce price competition. Without outsourcing american companies will lose out especially to the japanese who can match quality and prices are far cheaper. The primary reason why US companies outsource is cuz ur wages are too high and you simply can't compete with rivals.

You mean, Chinese, right?

[edit] opps sorry - you did say quality, so never mind

 

[kelvin070]

so you want us to lower our standards

so as to get closer to those with less

you might get your wish with the moron in the White House

Its a trade off really. You cant hav the best of both worlds. As Singapore developed we became a first world country and even our wages are too high now and americans companies are leaving us for the third world countries.

 

[kelvin070]

You mean, Chinese, right?

[edit] opps sorry - you did say quality, so never mind

The Chinese are just dumping stuff in USA regardless of quality to makeup for the trade imbalance. You got to allow that cuz USA owes them tons of money

 

[KpAtch3s]

I am not only located in singapore but born and raised in singapore and a singapore citizen who never been to US. Not being sarcastic but its the harsh truth. There are 1000s of american companies in singapore. This is a globalized world with fierce price competition. Without outsourcing american companies will lose out especially to the japanese who can match quality and prices are far cheaper. The primary reason why US companies outsource is cuz ur wages are too high and you simply can't compete with rivals.

Ok, so basically you proved my point for me. You are biased (so am I of course) so therefore you would rather our taxes stay high so that we continue to outsource for your benefit. I guarantee that with the right tax policy we could reverse this trend while we can continue to earn our "too high" incomes.

Although let me make it clear that I have no problem with outsourcing. It frees up our population to do more research and advancement into new fields. Lowering the taxes would encourage companies to move the base of their operations here to the US, especially if we quit the double taxation on foreign income. Not to mention it would help a lot with our trade deficit.

To make this short, I understand why you would prefer the current situation, but seeing as you aren't a US citizen I don't really care what your opinion is on this matter. If you don't like the way it effects your situation, then you're welcome to move to the US (legally of course). I prefer to keep the US as the wealthiest country in the world with a stable economy, and this a surefire way to do it.

 

[kelvin070]

Ok, so basically you proved my point for me. You are biased (so am I of course) so therefore you would rather our taxes stay high so that we continue to outsource for your benefit. I guarantee that with the right tax policy we could reverse this trend while we can continue to earn our "too high" incomes.

Although let me make it clear that I have no problem with outsourcing. It frees up our population to do more research and advancement into new fields. Lowering the taxes would encourage companies to move the base of their operations here to the US, especially if we quit the double taxation on foreign income. Not to mention it would help a lot with our trade deficit.

To make this short, I understand why you would prefer the current situation, but seeing as you aren't a US citizen I don't really care what your opinion is on this matter. If you don't like the way it effects your situation, then you're welcome to move to the US (legally of course). I prefer to keep the US as the wealthiest country in the world with a stable economy, and this a surefire way to do it.

For your info US is not the wealthiest country in the world. GDP per capita USA lies just behind Singapore in 8th position - Source : Richest Countries in the World. Obama been spending tax payer's money like a drunkard sailor and he is not going to reduce taxes. If at all he reduces taxes other countries will not just sit there and watch, they will follow suit. Like I said earlier this is a globalized economy. As for me moving to USA legally, first you kick the millions of illegal mexicans in the ass.

 

[KpAtch3s]

For your info US is not the wealthiest country in the world. GDP per capita USA lies just behind Singapore in 8th position - Source : Richest Countries in the World. Obama been spending tax payer's money like a drunkard sailor and he is not going to reduce taxes. If at all he reduces taxes other countries will not just sit there and watch, they will follow suit. Like I said earlier this is a globalized economy. As for me moving to USA legally, first you kick the millions of illegal mexicans in the ass.

:24: Per capita! We have 300 million people! GDP per capita is inherently misleading. Not to mention it does not mean thats how much income each person has. I also do not think your source is correct, as I've found other sources that are different, some don't even include Singapore. For the sake of argument we'll use your source. Here is total GDP I've calculate per country:

GDP Per Capita..........Population........................Total GDP
​

Liechtenstein........118,000....................34.247...................4,041,146,000
Qatar...................101,000..................907,229..................91,630,129,000
Luxembourg...........85,100..................480,222.................40,866,892,200
Kuwait..................60,000...............2,505,559................150,333,540,000
Norway ................57,500...............4,627,926................266,105,745,000
Brunei..................54,100..................374,577..................20,264,614,700
Singapore..............52,900...............4,553,009................240,854,176,100
US.......................48,000............301,139,947............14,454,717,456,000
Ireland .................47,800...............4,109,086................196,414,310,800
San Marino ............46,100...................29,615....................1,365,251,500

Total GDP excluding the US: 1,011,875,805,300

Conclusion, the US is the wealthiest country in the world, not to mention more wealth than all the other top 9 countries combined.


Also, I know Obama isn't going to reduce taxes. I never expected him to. In fact, he said he was going to raise taxes. This thread is merely pointing out how reduced taxes improves a countries economy as Ireland has shown. It's the way to bring the US out of recession, not government spending and bailouts.

 

[kelvin070]

:24: Per capita! We have 300 million people! GDP per capita is inherently misleading. Not to mention it does not mean thats how much income each person has. I also do not think your source is correct, as I've found other sources that are different, some don't even include Singapore. For the sake of argument we'll use your source. Here is total GDP I've calculate per country:

GDP Per Capita..........Population........................Total GDP
​

Liechtenstein........118,000....................34.247...................4,041,146,000
Qatar...................101,000..................907,229..................91,630,129,000
Luxembourg...........85,100..................480,222.................40,866,892,200
Kuwait..................60,000...............2,505,559................150,333,540,000
Norway ................57,500...............4,627,926................266,105,745,000
Brunei..................54,100..................374,577..................20,264,614,700
Singapore..............52,900...............4,553,009................240,854,176,100
US.......................48,000............301,139,947............14,454,717,456,000
Ireland .................47,800...............4,109,086................196,414,310,800
San Marino ............46,100...................29,615....................1,365,251,500

Total GDP excluding the US: 1,011,875,805,300

Conclusion, the US is the wealthiest country in the world, not to mention more wealth than all the other top 9 countries combined.


Also, I know Obama isn't going to reduce taxes. I never expected him to. In fact, he said he was going to raise taxes. This thread is merely pointing out how reduced taxes improves a countries economy as Ireland has shown. It's the way to bring the US out of recession, not government spending and bailouts.

Looks like you don't really have a grasp of basic economic fundamentals. I never did economics at school and I can tell you that absolute GDP figures are meaningless. You claim my source is not correct and you also claim that you have other souces that are different and dont include singapore. Very stupid of you not to prove it here in this forum with your sources. Now let me give you a second source which also ranks USA behind singapore
Source: GDP - per capita (PPP) - Country Comparison
RankCountryGDP - per capita (PPP) (US$)1Luxembourg80,800

2Qatar75,900

3Bermuda69,900

4Jersey57,000

5Norway55,600

6Kuwait55,300

7United Arab Emirates55,200

8Singapore48,900

9United States46,000

10Ireland45,600

 

[kelvin070]

The Global Competitiveness Report 2008-2009
Source: World Economic Forum - Global Competitiveness Report
The United States tops the overall ranking in The Global Competitiveness Report 2008-2009. Switzerland is in second position followed by Denmark, Sweden and Singapore. European economies continue to prevail in the top 10 with Finland, Germany and the Netherlands following suit. The United Kingdom, while remaining very competitive, has dropped by three places and out of the top 10, mainly attributable to a weakening of its financial markets.
The rankings are calculated from both publicly available data and the Executive Opinion Survey, a comprehensive annual survey conducted by the World Economic Forum together with its network of Partner Institutes (leading research institutes and business organizations) in the countries covered by the report.

 

[kelvin070]

Ireland is nowhere. Insourcing will probably drag USA down.

 

[alibaba]

yeah we did have a great few years, loads of jobs to be had and the country was overflowing with money, but as usual it was mismanaged by our politicians (who we elected so we cant complain) and spent in ridiclous ways.
the country is in the toilet now, other countries are following our lead and now large multi-national companies are leaving Ireland for places like Poland, eg Dell.
We became greedy and priced ourselves out of the market the cost of living in Ireland was at ridiclous levels over the last few years