The more I read about politicians, I truly have to wonder if the things they do are acts, deceptions, purely misjudgments or are they really as naïve and absolutely ignorant as they appear.
I’ve been noting for some time now how badly mistaken the incumbent is regarding taxes on business, because the folks owning and operating any kind of enterprise are far smarter, better informed, faster on their feet and light-years smarter than he is. Consequently, I continually predict that increasing taxes on them will result in the absolute reverse of any and all his expectations, likely resulting ultimately in a shrinking economy and significant reduction in governments revenue intake.
And the reason is so simple, anyone but an abject moron can clearly see it. Businessfolks don’t invest their time, smarts, and bucks to see what they accomplish financially taken from them to support others. They do it to benefit themselves. Therefore, those who are successful are going to do whatever they can and more to protect their assets, regardless. And if they can’t do that, they’ll simply reduce their production and investment rates until things start benefitting them again.
Now, while I truly expect the preceding scenario to occur, I found another crystal clear illustration this morning on Drudge, written by Nigel Morris of the UK’s The Independent on-line. And although it concerns Britain, I'm sure the same things soon will happen here.
The story’s headline says: "I’ll make 'damn sure' big companies pay their tax, says David Cameron."
Cameron is now president of the G8, and as such states that “The world’s most powerful leaders must mount a concerted effort to prevent multinational companies such as Starbucks and Amazon legally avoid large corporation tax bills.” And he also vowed that multinational firms pay their fair share of tax on their UK operations.
But here’s the part that got me. Cameron also said, “It’s simply not fair and not right what some of them are doing by saying, ‘I’ve got lots of sales here in the UK but I’m going to pay a sort of royalty fee to another company that I own in another country that has some special tax dispensation’.”
So, what this sounds to me is like some naïve kid whining about how he got taken in and fleeced in the street by other guys much faster on their feet and significantly smarter than he is. Because none but an immature, weak, intellectually dim amateur would truly expect accomplished businesspeople to stand still while inept government types attempted to pick their pockets, glomming their hard-earned bucks.
And worse yet, were the government actually successful in revenue collection, they’d waste those hard-earned funds ridiculously before the folks who earned them could even blink.
In the meantime though, as noted previously, I believe the UK scenario is a blueprint for what will happen here tax-wise. Because common business sense dictates it has to. The only difference will be that the guy whining and scratching his head about not being able to figure out where the money went won’t be a British financial dummy, it’ll be the president of the United States who has even less business acumen then PM Cameron.
That's it for today folks.
Adios
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