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View Poll Results: Should American companies that operate abroad pay foreigners the American minimum pay
Yes 15 42.86%
No 20 57.14%
Voters: 35. You may not vote on this poll

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  #21 (permalink)  
Old 05-02-2009, 09:14 PM
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Companies should never be obligated to pay minimum wage.
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Old 05-02-2009, 09:21 PM
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Originally Posted by Jack Ridley View Post
Companies should never be obligated to pay minimum wage.
That way the owner can have slaves. They would like that all the profit for themselves. That's bull(*)(*)(*)(*).
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Old 05-02-2009, 09:21 PM
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Lets talk unintended consequences.
The aforementioned companies would simply change their national registration and tell us to stick ALL of our taxes.
Not only do you lose the jobs but all of the taxes too.

This is what the tax the rich mentality gets you.
Tax us and we'll move the goalposts.
Tax the goalposts and we'll start playing golf instead.
Tax the balls and we'll fly kites.

Get it?

Get the government out of business and they will come back. Taxing business until it hurts makes business move away. That's why cities look like something out of a Mad Max movie today.
The idiots in cities taxed business so much they moved to the county. When they instituted metro government business moved to the next county.
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Old 05-03-2009, 01:56 AM
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Originally Posted by theunbubba View Post
The idiots in cities taxed business so much they moved to the county. When they instituted metro government business moved to the next county.
I don't believe in that theory. The average tax burden on US companies amounts to 13.4%, lower than OECD average. The average income margin of US companies is something around 10% That means in other words, that out of the total revenues of a company, barely 1% goes to paying taxes.

I say you gotta be joking if you'r honestly telling me that a company would go through all the troubles of moving to another country in order to pay 0.9% in taxes instead 1.1% in taxes.

There are plenty of reasons why a company can decide to move abroad - cheaper labor, lower environmental standards, etc. Taxes surely play only a minor role.

In any case, if through the many loopholes in our systems we make it extremely easy for companies to move taxable income to tax havens, that are thank God being closed down anyway, than that is another thing - that has nothing to do with outsourcing per se. Taxes might be part of the equasion, but a company outsorcing solely to reduce tax burden because of the supposedly "high" corporate taxes in the US is a fairy tale.
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Last edited by AzzY; 05-03-2009 at 01:57 AM.
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Old 05-03-2009, 03:34 AM
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Originally Posted by AzzY View Post
There are plenty of reasons why a company can decide to move abroad - cheaper labor, lower environmental standards, etc. Taxes surely play only a minor role.
The orthodox explanation is the belief that fragmentation of production is a strategy, by enabling specialisation according to the most efficient location for each production component, that ensures a more complete exploitation of scale economies and flexibility in the face of demand shocks (i.e. turning 'fixed costs' into 'variable costs'). We'd also have to factor in the need for increased product differentiation and therefore a move away from rigid firm structures. Any attempt to suggest that there is a simple supply-side 'fix', such as the standard tax rant, is then doomed. Doomed I tell yer!
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Old 05-03-2009, 04:55 AM
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Quote:
Originally Posted by Butercupp View Post
Outsourcing is not good for the economy.
Anything that maximizes profits is good for the economy.
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Old 05-03-2009, 10:05 AM
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Originally Posted by Inferno View Post
If they had to pay the American minimum then the jobs would not be outsourced and would remain in the US. It would help the people of the US. Outsourcing takes away from the American worker again and sticks higher profit in the pockets of owners and shareholders. It is a practice that should be stopped.
It can easily be stopped...just create a protectionist society and ban or tariff imports. Of course the prices of most products will greatly increase and there will be no more exports and both of these means the economy will crash and burn...meaning tens of millions fewer jobs...
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Old 05-03-2009, 10:07 AM
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Originally Posted by Caezius View Post
Exactly my point, people complain about illegal aliens taking their jobs, well what about foreigners? Those are American jobs being shipped overseas. Don't get me wrong, I'm all for the expansion and success of corporations, I just think Americans would be a lot better off, if this was a law.
What you fail to understand is that those jobs overseas ONLY exist as long as people can afford to buy the products. If you increase the cost of the products overseas, and double the pricing of everything in the USA, people will stop consumption, and there won't be any jobs for anyone...
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Old 05-03-2009, 10:13 AM
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Originally Posted by OldManOnFire View Post
It can easily be stopped...just create a protectionist society and ban or tariff imports. Of course the prices of most products will greatly increase and there will be no more exports and both of these means the economy will crash and burn...meaning tens of millions fewer jobs...
--Nice try. People will have better Jobs from the more expensive items placing more in the masses hands to be spent all across society, bringing back more luxury for masses and a forever increasing society based upon real production, not money circulating back and forth between a few rich guys pockets. Basically, anyone who is reading, protectionism is what allowed us to get to how big we were in the 80s. Free trade lead to the boom of the 90's and the collapse of our society afterwords. All they can tell you is lies and hope you weren't paying attention. Does Wal-Mart at least cut you free trade puppets a check for the destruction of our society?
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Old 05-03-2009, 10:24 AM
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Basically, anyone who is reading, protectionism is what allowed us to get to how big we were in the 80s. Free trade lead to the boom of the 90's and the collapse of our society afterwords.
You're going to have to do better than that to deny the gains from trade and specialistion according to Ricardian comparative advantage
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