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Politics : PRESIDENT GEORGE W. BUSH -- Ignore unavailable to you. Want to Upgrade?

To: Bill who wrote (455640)	9/9/2003 6:25:44 PM
From: Lizzie Tudor	Read Replies (1) \| Respond to of 769670

It amazes me that you have such a shallow understanding of basic economic principles. If a company saves $100k by shipping a job offshore, a portion of that 100K is taxable as corp income, gets reinvested in hiring another employee, gets distributed to shareholders (where it is taxed again), and is used for capital investment. And it amazes me that you don't get this. That 100K job for Oracle equates to around 30K-40K in taxes to the US government here, sad but true. Almost 15K in fica alone + his federal and another 8% or so state (assuming he is in California). Lets be generous (to your point) and say the feds get 30K from employee X and his employer to pay for Federal taxes + SS. What would it take for that same 100K to generate 30K in taxes for your plan? Corporate tax rates are 10%, so in the unlikely event that the 100K went directly to the bottom line of oracle, we'd get 10K- 1/3 less than the employee situation. Say Oracle paid a dividend.... nothing there in the way of taxes, thanks to the Bush cuts. Maybe with increased productivity the executives can make more money... but wait, isn't that the "trickle down" phenomenon which never really trickled from the late 80s? It looks to me like it is almost impossible to generate a dollar for dollar tax benefit match to the US for every 100K job we lose. For the simple reason, the US employee is overtaxed. But that is irrelevant now, we have a tax and spend president and a declining wage base and what does that equal- trillion dollar deficits, thats what. I'll tell you one thing, if we lose all these jobs and somebody doesn't do something to hack up social security I am going to be sorely disappointed.