Tuesday, September 28, 2010

Yet another "jobs bill"

The AP reports that the Senate failed today to move a Harry Reid bill that “would prohibit firms from taking deductions for business expenses associated with expanding operations in other countries”.

In other words, the profits that businesses make abroad will still be confiscated at the 35% rate (the US being the only country which taxes foreign profits), but expenses associated with expanding abroad would not be deductible according to the bill. This is in order to discourage US businesses from doing business abroad. 

So it is of course a “jobs bill”, and how can anyone be against jobs?

So, therefore, if GE open a gas turbine factory in Bavaria, that’s a bad thing, because it should have been located in New York, where we need  jobs.

And when BMW opens a factory in South Carolina, that’s a bad thing too, because it should have been located in Bavaria, where they need jobs too! Don’t you understand economics?

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