The Overburden of Tax on the American citizen is vary extreme from state to state . Americans seemed to be TAXED more and more since the 1930's . We now assume that the Democrats are the 'Tax and spend liberals" , while the Republicans are the Party of NO TAX. However that took a dive with both pizza mogul Herman Cain, and his competitor for the Tea Party vote Texan governor Rick Perry. Yes they want to TAX you some more with some outlandish tax law changes . Both men have proposed, as their keystone economic strategies, variants of the flat tax idea. Cain has proposed the “9-9-9″ plan, calling for a nine per cent sales tax, a nine per cent business tax, and a nine per cent flat tax, while Perry has proposed a 20 per cent flat tax which would be opt-in . Broadly, both these plans hinge on the argument that the American tax system is both overly complicated (having, as ours does, income tax bands) and unfair (because rich people should pay the same percentage of tax as the poor), but as Syracuse University Professor Leonard Burman said on Radio 5 last night, it is more complex than it sounds:.
“A flat tax is just a kind of VAT where the wage part of the tax is payed by workers and the basic idea is that you do that so that you can allow an exemption so that it’s not quite as regressive as a sales tax is, whereas a sales tax would be overall.Perry’s plan is torn apart by Jared Bernstein, a member of Obama’s economic team, who argues that it only makes sense if you believe the following things are the problems with America’s tax system:
“The wrinkle in Rick Perry’s plan is that he allows the option of paying tax under our old complicated income tax for people who like that better. The concern a lot of us have is that a flat tax is regressive, kind of unfair, it’s a huge tax cut for high income people…
“[It's regressive because] it’s basically a sales tax, and while we can think of it as a wage tax and a cash-flow tax on businesses, but, y’know, if you look at wages for high-income people, wages are half of their income, for low income people its all of their income.
“If you look at spending, high income people spend only a fraction of their income because they’re rich enough to be able to save most of it, low income people spend all of their income, so both Herman Cain’s sales tax/flat tax – Herman Cain’s plan is really a hodgepodge, it’s actually three different kinds of sales taxes labelled as an income tax and a business tax and a sales tax, I think he figured out that calling it a 999 plan would be saleable than calling it a 25% sales tax, which is actually what it is.
“Cain’s plan at least has the advantage that it could plausibly pay for the government, because it’s got a very very broad base and a pretty high tax rate. The problem with Perry’s plan is that it would produce enormous deficits.
“High income people would all choose the option of paying 20 per cent wage tax rather than the 35 per cent that they pay now on all of their income including interest and dividends, and other capital income, so it’s fiscally irresponsible.
“It’s actually more complicated than the current system, because you have to choose between the new flat tax and the old complicated income tax, and from my perspective at least it’s really unfair because it would produce huge tax cuts for high income people. That’s not really our biggest problem right now, that high income people pay too much tax.”
• The tax code is too simple;These problems pale in comparison to those of Herman Cain’s, however. Yes, Perry’s will probably bankrupt America, but for Cain, a picture is worth a thousand words.
• Rich people need more after-tax income;
• There’s too much retirement security in America;
• Multinationals aren’t creating enough jobs abroad.
JOBS TO CHINA.
Anti-Suicide NETS at a i Phone &I pad manufacturing plant in China .
With all his "Genius" Steve Jobs provided an Anti-American feel to the Jobs Market that's been reeling because of Obama's record of 9.1 % four year record of no-action . Mr. Jobs sent work to China , YES work that could have done here and MADE in the USA. APPLE with it's net worth of 74 billion still has sweatshops in China where they make iPad and iPhone products for a fraction of the cost that an American factory could produce them for. The working conditions were so deplorable that people were jumping out of the factory windows and killing themselves. Steve Jobs response wasn't to improve working conditions, but rather to install suicide safety nets to prevent the suicide jumpers from falling to their death.The iPhone was estimated to cost $130 to make (when Apple was charging over $800 for it) and probably costs even less than that. Apple had more than enough revenues and profits to manufacture the phone in the U.S. Because more and more companies like Apple only want bigger profits even when they have more than enough revenues, there are a growing number of impoverished areas expanding in America. It would be just as cost-effective to manufacture Apple products in the U.S. and save on massive international shipping costs, export of the right equipment, protection of patents, etc, than send over 500,000 jobs overseas. This is what is now called the NEW capitalism, no businesses care about America, they only care that Americans buy they products and that the powerful Americans in suits lower the corporate tax rate. This is the "great" thing about capitalism isn't it? You get to buy what you want but you don't get to make it.
Increasing attention has been paid to the sharp increase in suicides this year at Foxconn's Shenzhen factory which manufactures iPods, iPads, and iPhones. It also fills orders from a broad list of clientele including Dell, HP, Microsoft, Nintendo, and Sony. With at least one employee dying from exhaustion as well, the pressure is on for Foxconn and its Taiwanese owner Hon Hai Precision Industry Ltd. to enact changes.