This post is in response to the interview on Fox News with Rick Perry that was published at http://www.huffingtonpost.com/2011/10/25/rick-perry-economic-plan_n_1030183.html
I am sure I am not the only one who sees the holes in this plan.
Rick Perry announced on Tuesday that if elected president he would slash the corporate tax rate to 20 percent from 35 and give everyone the option of paying a flat income tax rate of 20 percent.
The fifteen percent drop in the corporate tax rate would have to be balanced somewhere else and his plan for that is what? Once again, they would raise everyone else's taxes (You and me.). This is Rick Perry acting like he can completely ignore everything the "Occupy Wall Street" protest movement stands for. This is why people like him need to be removed from the equation. He, like most of Texas, wants to ignore the mood and condition of the rest of the United States. He actively admitted that he accepted Federal Grant Subsidies for Texas as if that had nothing to do with their rise in employment and in the same breath says that Obama's spending to increase employment never works. They received stimulus money that was directly earmarked for job creation which many other states that are far worse depressed, didn't. He acts like he doesn't understand where that money came from, using the excuse that since they send a lot of money to Washington, then it would be stupid to not get some back. He seems to think Texans are the only Americans to pay income taxes per the amount of revenue and income they create.
He also would try to encourage U.S. companies who have stored $1.4 trillion overseas to move their profits back to the United States by allowing them to pay 5.25 percent in taxes at first, according to Reuters.
He says that he would "TRY TO ENCOURAGE" (?) U.S. Companies who have moved overseas to move back (?)" which has been suggested before (since, who, Ronald Reagan or dating back to before FDR ?) . I would like to mention here that his party threw a fit over Obama doing peace conferences without prior previsions and agreements. They want stimulus to go to people who don't need the money with no guarantee that wealthy business owners would start hiring again unless it is FIRST in writing, like the negotiation the president did with GM, which they then criticized him for. Once again the carrot that tax breaks will encourage growth is waved in front of our noses but we all know that this is only a small part of the savings of using foreign labor and paying substandard wages in other countries. Anyone who looks at cities in India where American outsourcing is at it's greatest can see that there are still slums where people don't own a toilet but they are right next door to the nice housing where corporate workers live, who get paid more for being a telephone solicitor than being a computer programmer. NO ONE CARES about the living conditions of foreign workers. Some American IT Computer Programmers (mostly in Silicon Valley) were being payed up to 120 dollars and over an hour.
Those guys were supporting the housing industry, which supported the banking industry. People talk about predatory lending should read the prices for California real estate in the San Francisco area at that time. It is still obscene.
In India for example, they receive what we in the United States consider minimum wage. One day the American corporate efficiency experts fired them and rehired all of their employees through staffing agencies (while assuring them nothing would change) who took one third of their salaries and paid no benefits.These people were living the American dream PLUS, two story houses on the beach in San Francisco with two or three Lexus payments for each of their families. Now they had two thirds income and NO BENEFITS (including the exorbitant medical care in California). The employees sued the companies for BREACH OF CONTRACT then, when wired news on Lycos broke the story the companies moved to India where they could train people and pay them less than 7 percent of what they were paying employees here. These were mostly people who had Masters Degrees in Computer Science and at least 25 years of IT experience in the industry that THEY CREATED.
Now, profit wise, these companies didn't decrease revenue when their costs went through the floor, they started charging us more still, while taking an over 93 percent drop in payroll expenses (which is the biggest overhead expense for almost any business) with almost NO INCOME TAX if they keep an income base in a foreign country for over three years. So the 35 percent tax amount Perry mentions is fictitious if they stay overseas for over three years (which most of them have exceeded already).
Even if that wasn't so, does he really think a 15 percent tax break is going to outweigh what they are saving in payroll expense and cause them to come home and pay American workers even twice what they pay there, much less a comparable 500 to 900 percent of what they pay in foreign wages? This is why at one time American workers (especially Union workers) were paying for commercials that said, "Look for the union label" and "Made in America". It was because they knew this day would come eventually come. And on this shore, we have illegal aliens bringing down the standard wage while costs go up. And who suffers? The American middle class worker is left paying higher prices plus more taxes per his lessening income while paying more for items that cost less than ten percent of what it took to create them a decade ago.
The plan, if enacted, would dramatically reduce the tax burdens of the wealthiest people in the United States,
Which is basically ALL IT WILL DO and if that worked at creating jobs, like we were tricked into believing for a couple years, then the Bush Tax Cuts for the Rich would have worked ten to eleven years ago the way it was predicted.
saving millions of dollars for some, while raising taxes for poor and middle-class people who opt into the plan (by electing him).