Obama wants to have companies that have offshore accounts to start paying up. Now to all those out there who think that this is some kind of tax increase on business think again. A person making $50,000 pays a tax rate of 25%. A corporation making $500,000 has a tax rate of 35% but with the little loophole of having a PO box in the Cayman Islands or other tax haven and someone there to forward mail back to corporate headquarters the corporation pays no taxes. Corporations say they pay taxes to the foreign government while telling the foreign government that they pay the U.S. taxes. The end result is that the individual taxpayer pays thousands while the corporation pays nothing. This will be interesting when they start auditing the books and checking the declared taxes corporations say they pay.
It's estimated that $21 billion is lost from this corporate tax evasion. Here's an idea let's have the IRS audit their books for the last 7 years and make them pay the same penalties and interest that they charge the little guy. Then maybe we'd see that CEO pay and bonuses start to look realistic.
I see the stock market went up by a couple hundred points today. I have a theory about that. It isn't because the economy has bottomed out. It's because the short sellers are looking for a good time to dump their positions. There's no way corporate profits are going to go up anytime soon if Chrysler is basically finished and GM is not far behind. That's over 200K workers out with no prospects. Think what that will do for consumer demand. There's so many companies calling it quits or cutting back I can't count the empty store spaces any more. The only places with even half full parking lots are the food stores and even shoppers there are buying less.