yank

It's a Winter Warming Spell - But More Snow Ahead for Markets

base:
I don't think Obama cares if he "runs off" the fat cats. It's all about income redistribution. He is literally following the Herbert Hoover "playbook" by raising taxes on the rich, protecting US jobs at the expense of free trade, and other gaffes. Make no mistake. Obama will lead this country into a Depression. And if I were a CEO of a US company I would not hestitate to relocate to Switzerland. Obama apparently did not listen to the words of the late Boris Yeltsin (former Russian President) who was asked the direct question in an interview "Does socialism work?". His answer was an unequivocal "No". He said Russia had over 75 years to make it work and it was not enough to keep it from failing. If Russia one of the largest countries in the world can't make it work, no one can. Are you listening Obama?


On Mar 14 11:10 AM basehitz wrote:

> The thoughtful analysis is compelling.
>
> Another issue on which I am focused is tax policy. There is a steady
> stream of major US corporations heading overseas (Switzerland is
> a favorite) in anticipation of coming tax policies.
>
> A March 11 AP article "Corporate oil booms in low-tax Switzerland"
> states:
> "Yet a wave of energy companies has in the last few months announced
> plans to move to Switzerland -- mainly for its appeal as a low-tax
> corporate domicile that looks relatively likely to stay out of reach
> of Barack Obama's tax-seeking administration." Already RIG, WFT,
> NE, FWLT and others are moved or in process.
>
> Another March 11 TSDC article states:
> "The tax-law change, which has not yet been introduced for a vote
> to Congress, hopes to collect an extra $210 billion in corporate
> taxes.
> "For U.S. companies like IBM, Hewlett-Packard, Microsoft, Intel,
> Cisco, Qualcomm and Juniper, which operate foreign subsidiaries,
> this could mean bigger tax bills."
> ""Under a worst-case-scenario," Gelblum wrote, Cisco and Qualcomm
> would see a 22% tax rate grow to 35%. This would reduce 2010 earnings
> by 17%."
>
> The unintended consequences of aggressive tax policy may actually
> reduce tax revenues rather than, as some have explicitly stated,
> accept a less competitive world position for these large multinationals.
>
>
> So far, it is unclear Washington is hearing it. Yesterday I heard
> a compromise from Washington about moderating corporate tax rate
> but the strings attached may make it a non-starter. I don't have
> details yet. These guys better be careful they don't run off the
> very companies we need for our future.
>
>
>