bertsmobile1
Lawn Royalty
- Joined
- Nov 29, 2014
- Threads
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While those sorts of spending programmes look like a frivolous waste of money there is usually a strategic reason behind them often things like CIA off the books funding for example .
The problem comes from those who do not pay tax
If you get an extra $ 20 a week tax rebate then chances are you will spend it locally, heck you might even buy some better quality USA made tools rather than the HF Chinese junk
If Trump gets an extra $ 20,000 tax rebate he either uses it to buy more shares or another luxury boat , private plane etc etc and in most cases it will be spent overseas
The fastest way to stimulate the economy is to give money to those who do not have any discretionary spending power because they will spend it and spend it locally so it stays in the country
Give it to the top end & they buy another Rolls Royce , villa in Italy, Island off the Greek coast etc etc etc
Then you have company tax
so USS makes a ton of steel for $ 50 & sell it to their distributor for $ 100 of which $20 will be tax.
The distributor sells the steel to Bills Bridges for $ 150 and the government gets another $ 20 tax
Bill builds the bridge & charges the customer $ 200 and the govenment gets another $ 20 so there is $ 60 net tax
However now USS has a wholey owned subsidiary in the Phillipines and they sell the ton of steel to them for $ 50 and get a $ 10 tax credit under the developing nations tax incentive
USS P sells that steel to Bills Bridges for the same $ 150 but the $ 100 profit is made in the Phillipines so the US gets no tax
Bill builds the bridge and sells the steel for $ 200 so the government ends up with $ 10 of tax in place of the $ 60
This is how transfer pricing works and how it robs the US government of tax revenue .
Then you get really shady deals like apple USA sells the Apple trade mark & logos to Apple Ireland for $ 1,000,000 .
Then every year Apple US sends apple Ireland $ 700,000,000 in tax free royalties for use of the Apple trade marks on phones & shit they sell in the USA every year .
so the government has lost $ 200,000,000 of tax money ( actual figures from around 2000 ) now add Microsoft, Intel, IBM, Adobe, Snap On, Mc Donalds etc etc etc and you can see why there is such a big national debt .
And it gets worse
Every second of every day currency traders by & sell US $ for all sorts of currencies and make astronomical daily profits and we are talking trillions , not millions or even billions and there is no tax on the profits , not one cent .so that is money that USS could be investing in new steel plant but instead it is with hedge funds going round & round & round the world and every time it gets converted some one makes a killing that is 100% tax free
next we have partnerships . legal firms & consultants , again not taxed on the initial payment the customer makes so by the time the 700 billion that the US government pays to Price Waterhouse gets all of the total BS deductions , like $ 100/page for photocopying a 5,000 page report sent to 50 partners , the tax the US government gets is... almost nothing .
So who is left holding the can for everything, the saps on PAYE wages who are on the lowest rates in the country
and that my friend is the real problem with the economy
You have government over the poor by the rich & power full for the benefit of the rich & powerful
and every year it gets worse , your spending power decreases, you get sick and either you become bankrupt or get tossed out into the street because the hospital has no money to treat you .
The problem comes from those who do not pay tax
If you get an extra $ 20 a week tax rebate then chances are you will spend it locally, heck you might even buy some better quality USA made tools rather than the HF Chinese junk
If Trump gets an extra $ 20,000 tax rebate he either uses it to buy more shares or another luxury boat , private plane etc etc and in most cases it will be spent overseas
The fastest way to stimulate the economy is to give money to those who do not have any discretionary spending power because they will spend it and spend it locally so it stays in the country
Give it to the top end & they buy another Rolls Royce , villa in Italy, Island off the Greek coast etc etc etc
Then you have company tax
so USS makes a ton of steel for $ 50 & sell it to their distributor for $ 100 of which $20 will be tax.
The distributor sells the steel to Bills Bridges for $ 150 and the government gets another $ 20 tax
Bill builds the bridge & charges the customer $ 200 and the govenment gets another $ 20 so there is $ 60 net tax
However now USS has a wholey owned subsidiary in the Phillipines and they sell the ton of steel to them for $ 50 and get a $ 10 tax credit under the developing nations tax incentive
USS P sells that steel to Bills Bridges for the same $ 150 but the $ 100 profit is made in the Phillipines so the US gets no tax
Bill builds the bridge and sells the steel for $ 200 so the government ends up with $ 10 of tax in place of the $ 60
This is how transfer pricing works and how it robs the US government of tax revenue .
Then you get really shady deals like apple USA sells the Apple trade mark & logos to Apple Ireland for $ 1,000,000 .
Then every year Apple US sends apple Ireland $ 700,000,000 in tax free royalties for use of the Apple trade marks on phones & shit they sell in the USA every year .
so the government has lost $ 200,000,000 of tax money ( actual figures from around 2000 ) now add Microsoft, Intel, IBM, Adobe, Snap On, Mc Donalds etc etc etc and you can see why there is such a big national debt .
And it gets worse
Every second of every day currency traders by & sell US $ for all sorts of currencies and make astronomical daily profits and we are talking trillions , not millions or even billions and there is no tax on the profits , not one cent .so that is money that USS could be investing in new steel plant but instead it is with hedge funds going round & round & round the world and every time it gets converted some one makes a killing that is 100% tax free
next we have partnerships . legal firms & consultants , again not taxed on the initial payment the customer makes so by the time the 700 billion that the US government pays to Price Waterhouse gets all of the total BS deductions , like $ 100/page for photocopying a 5,000 page report sent to 50 partners , the tax the US government gets is... almost nothing .
So who is left holding the can for everything, the saps on PAYE wages who are on the lowest rates in the country
and that my friend is the real problem with the economy
You have government over the poor by the rich & power full for the benefit of the rich & powerful
and every year it gets worse , your spending power decreases, you get sick and either you become bankrupt or get tossed out into the street because the hospital has no money to treat you .
