Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Foreign Affairs Discussion Group -- Ignore unavailable to you. Want to Upgrade?

To: neolib who wrote (161236)	5/3/2005 7:24:58 AM
From: Hawkmoon	Respond to of 281500

I don't follow this one. Urban/rural, or regions of the US all are under one government, one set of rules, same currency, free movement of goods, services, and people. Then why do different states have different tax rates (property, sales, and income)?? And why is it that some states offer tax holidays in order to attract corporations to locate there? I remember in a county I used to live in, there was a Tupperware factory that employed a good percentage of the local community. It received very beneficial tax benefits for locating there. But then, after a number of years, a new county commission decided to start taxing them. They pulled up stakes and relocated somewhere cheaper. There is a discrepancy in the balance of trade between agrarian rural states and more industrialized ones. Delete the term exporting in the above sentence, and IMO they could find better investments. Since they are exporting, they can't afford not to lend to the US consumer. This is where I see the danger lurking. Well, I have to stand by my statement. Foreign governments are aggressive consumers of US debt. It stands to reason that they would not wish to repatriate their capital during a period when they rely upon US markets to maintain their revenue and profits. Selling US$$$ weakens an already weak $$$, while strengthening their own currency. Hawk