corporations

Obama, Corporate Inversions, and Grotesque Hypocrisy

Last month, I put together a list of six jaw-dropping examples of left-wing hypocrisy, one of which featured Treasury Secretary Jacob Lew.

He made the list for having the chutzpah to criticize corporate inversions on the basis of supposed economic patriotism, even though he invested lots of money via the Cayman Islands when he was a crony capitalist at Citigroup.

But it turns out that Lew’s hypocrisy is just the tip of the iceberg.

It seems the entire Obama Administration was in favor of inversions just a couple of years ago. Check out these excerpts from a Bloomberg story.

Obama Lecture on Playing by the Rules is Utter Hypocrisy

In a recent weekly address, Barack Obama uttered ten words which every conservative in the nation immediately recognized as absolute truth in a constitutional republic which provides for separation of powers among the branches and levels of government. To quote, Obama stated “You don’t get to pick which rules you play by.”

His statement was made regarding the growing trend of “inversion,” whereby U.S. multinational corporations merge with foreign companies and move their headquarters overseas in order to avoid the double taxation that the United States levies on its companies, a burden suffered by the corporations of no other industrialized nation, which therefore puts American businesses at a competitive disadvantage.

The irony of those words, coming from THAT man, should be lost on no one with an IQ above room temperature.

Obama, more than any president in American history, has shown complete and utter contempt for any constitutional restrictions on his power, and openly mocks and taunts those that express deep concerns for his brazen disregard for the tradition of compromise (as ugly as the process is to get to that end point) that has guided our government for more than two centuries.

Obama talks about having “a phone and a pen,” a reference to his numerous Executive Orders which often bleed over into powers reserved for the other branches of government. Obama has repeatedly claimed this year that he will act unilaterally when Congress refuses to give him his way, and when Congress protests such abuse of power, he glibly responds, “Sue me!”

Hey, Barack Obama, businesses are moving overseas because of a terrible tax climate made worse by you

There’s been a lot of talk lately from President Barack Obama and administration officials about “economic patriotism.” They say that corporations shouldn’t be allowed to move overseas to escape paying the corporate income tax.

“Even as corporate profits are higher than ever, there’s a small but growing group of big corporations that are fleeing the country to get out of paying taxes,” President Obama said at a stop in Los Angeles on Thursday. “They’re keeping, usually, their headquarters here in the U.S. They don’t want to give up the best universities and the best military and all the advantages of operating in the United States. They just don’t want to pay for it. So they’re technically renouncing their U.S. citizenship.”

Earlier this month, President Obama suggested that Congress (read: Republicans) lack “economic patriotism” to work with his administration on issues the country faces. Treasury Secretary Jack Lew dropped the same term in a letter to Senate Finance Committee Chairman Ron Wyden (D-OR) as he urged Congress to pass legislation to end corporate inversions.

“What we need as a nation is a new sense of economic patriotism, where we all rise or fall together. We know that the American economy grows best when the middle class participates fully and when the economy grows from the middle out,” Lew wrote in the letter to Wyden. “We should not be providing support for corporations that seek to shift their profits overseas to avoid paying their fair share of taxes.”

72% of Americans See Big Government as the Greatest Threat

big government

Since Barack Obama took office in 2009, more Americans say that big government is a much greater threat to the country than big business. The latest Gallup shows that the number of Americans who believe that big government is the biggest threat to the United States has been increasing in a rather steady fashion.

According to Gallup, 72% percent of Americans now believe that big government is the number one threat to the country. The poll also demonstrated that only 21% of Americans now believe that big business is the major issue. The historical high choosing big business over big government or big labor, 38%, was registered in 2002.

Obama: You didn’t build your business

Obama

President Obama has been accused of conducting class warfare.  His supporters, obviously, disagree.  They see Obama merely as fighting for the rights of the lower and middle classes against the all-powerful wealthy.  However, this latest quote from the president takes a shot that may just go astray:

If you’ve got a business — you didn’t build that.  Somebody else made that happen.

Yes.  He really said that.

However, let’s look at the whole context:

If you were successful, somebody along the line gave you some help.  There was a great teacher somewhere in your life.  Somebody helped to create this unbelievable American system that we have that allowed you to thrive.  Somebody invested in roads and bridges.  If you’ve got a business — you didn’t build that.  Somebody else made that happen.  The Internet didn’t get invented on its own.  Government research created the Internet so that all the companies could make money off the Internet.

The point is, is that when we succeed, we succeed because of our individual initiative, but also because we do things together.

The Proletariat Uprising Against Evil Corporations

With the economy in a sustained recession, unemployment at or above nine percent for approaching three years, and tens of millions of Americans struggling just to put food on their table, perhaps few people or organizations have been showered with such hostility and ill-repute as have “corporations.” Yet, of all of the root causes of our current economic malaise, such contempt may nowhere be more misplaced.

Obama, after the shellacking his party took in the 2010 elections and with no end in sight to the economic downturn, has turned to finding a scapegoat or two to deflect blame for the anger and frustration America feels. His two favorite targets are Republican “obstructionism” and those evil, faceless corporations that steal from the poor to sate their insatiable greed.

Maybe he has a point though. After all, we all know that Steve Jobs became one of the richest men in the world as the head of Apple by hiring legions on thugs to go out across America to households and college campuses, brandishing guns and clubs and threatening violence if the poor masses did not give these brutes their money in exchange for little pieces of molded plastic and silicon and copper which Jobs called “Macs” and “iPods”, “iPhones” and “iPads”. His reign of terror was so complete that every time Jobs released a new version of these little pieces of plastic, hundreds and thousands of people would camp out overnight at one of his stores to give up their money in exchange for these gadgets, in the hope that by voluntarily doing so his thugs would not show up at their homes, schools and places of businesses and threaten them there.

My Humble Apologies to Occupy Wall Street

I need to offer an apology. For the last couple of months I’ve been highly critical of the Occupy Wall Street movement, accusing them of being violent, misbehaved, clueless social malcontents. However, in light of recent events, I’ve concluded I was wrong, and we should embrace the philosophy of government enforced equality for all. No more disparities in anything we do or have, just an equal distribution of everything to everyone.

I had this epiphany a few days ago while watching ESPN and coverage of the NBA lockout, now nearing its 150th day. What it boils down to is multi-millionaire owners and multi-millionaire players arguing over who gets the biggest piece of a multi-billion dollar league revenue pie. I realized that all of this bickering could be resolved by implementing the demands of equality espoused by the Occupy Wall Street protestors.

So here’s the deal…since President Obama wants to increase taxes on “the rich” who need to “pay their fair share” so that we can “spread the wealth”, we simply set the maximum NBA player salary at the level Obama defines as “rich”, which is $200,000 for an individual. That is $50,000 more per year that what it takes to be in the Top 5% of income earners in this country (a threshold which starts at just under $160,000). In fact, that will be the salary for EVERY NBA player, because it is immoral to discriminate simply on the basis of talent, productivity or some other performance-based metric. Just because one player was not born with the natural talent of another player, or refused to succumb to the oppressive dictates of some evil corporation (after all, the NBA is basically a big corporation) with its constant demands to maintain physical fitness and practice all the time, doesn’t mean they should be punished.

More Random Musings and a Rebuttal

I have a confession to make…I love hate mail. I actually get disappointed if I go too long without getting a really nasty e-mail from someone. Hate mail means that I have challenged someone’s assumptions at a core level. Hopefully this irritates them enough to do research to try and mount an effective rebuttal, and in the process hopefully learn new truth. I don’t even care if hate mail comes from the political left or right. We all need our assumptions challenged. I used to be a die-hard advocate of the War on Drugs, until I looked at the facts and saw how it had failed at its stated purpose of reducing drug use, while simultaneously being used to destroy constitutional rights with such things as asset forfeiture laws, which allows government to accuse you of drug related activity, seize your assets, and then make you spend enormous money fighting them to prove your innocence and regain your property. Most people just give in to this tyranny.

Last week I offered some random thoughts, and I figured I’d do more of the same this week. However, before I do, I’ll respond to a few comments from an angry reader of last week’s article. The reader took exception to my mockery of the Occupy Wall Street protestors, accusing me of misrepresenting them. She said I ignored “corporate greed” and oppression of the poor, and asked “about all the corporations that want more and more from the general public”. She was upset that I pointed out that the socioeconomic demographic with the highest obesity rates is those below the poverty line, and claimed that it’s cheaper to eat junk food than to eat healthy fruits and vegetables.

The OECD’s Scheme to Raise Tax Burdens on Workers, Consumers, and Investors

People pay every single penny of tax that politicians impose on corporations.

The investors that own companies obviously pay (more than one time!) when governments tax profits.

The workers employed by companies obviously pay, both directly and indirectly, because of corporate income tax.

And consumers also bear a burden thanks to business taxes that lead to higher prices and reduced output.

Keep these points in mind as we discuss BEPS (“base erosion and profit shifting”), which is a plan to increase business tax burdens being advanced by the Organization for Economic Cooperation and Development (OECD), a left-leaning international bureaucracy based in Paris.

Working on behalf of the high-tax nations that fund its activities, the OECD wants to rig the rules of international taxation so that companies can’t engage in legal tax planning.

The Wall Street Journal’s editorial page is not impressed by this campaign for higher taxes on employers.

Inversion Controversy Is about Whether Company Profits Should Flow to Shareholders or Government

Since I’ve been in Washington for nearly three decades, I’m used to foolish demagoguery.

But the left’s reaction to corporate inversions takes political rhetoric to a new level of dishonesty.

Every study that looks at business taxation reaches the same conclusion, which is that America’s tax system is punitive and anti-competitive.

Simply stated, the combination of a very high tax rate on corporate income along with a very punitive system of worldwide taxation makes it very difficult for an American-domiciled firm to compete overseas.

Yet some politicians say companies are being “unpatriotic” for trying to protect themselves and even suggest that the tax burden on firms should be further increased!

In this CNBC interview, I say that’s akin to “blaming the victim.”


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