Microsoft Confirms My Obama Thesis
I wrote previously how President Obama was attacking the US economy with his plan to impose higher taxes on US Companies offshore profits.
Well, Microsoft CEO Ballmer confirmed it yesterday, saying that he will move more Microsoft jobs offshore if Congress enacts Obama’s tax plans.
“It makes U.S. jobs more expensive,” Ballmer said in an interview. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.”
Not everyone wants to leave the country for work, thus Microsoft would end up losing US workers and hiring more talent offshore. I do not see how that will help our current unemployment situation. I am not a fan of this tax proposal.
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Sorry Conner, but I don’t read it the same way. You say that Ballmer ‘will’ move MS jobs offshore, whereby in your quote from him he says – “We’re ‘better off’ taking lots of people and moving them out of the US”. You made it out like that’s what they ‘will’ do, whereby his statement is a typical corporation ‘threat response’ of what ‘might’ happen if they have to abide by rules they don’t like.
You say you don’t want to see jobs leave the country, but you feel it’s ok to see money ‘rightfully’ due our government leave the country??? Oh yes, let’s feel sorry for the mega profiting companies, while our countries infrastructure and citizens needs go dormant due to the lack of money to pay for such. Sorry, but I’m not a fan of corporations avoiding their ‘due share of tax responsibilites’ thru loopholes, while Joe Average is forced to pay their share or face the consequences.
I say they’ve gotten away for years hording money and avoiding paying their taxes, time to pony up like everyone else.
@Kevin
I believe threats usually end up becoming reality in the long term. If it is cheaper to create the same product offshore, the smart corporation will do so. You can’t stop the inevitable.
I am all for paying taxes. At an effective 26% tax rate, Microsoft is currently paying a higher tax rate than probably 3/4 of our country. Joe Average is the one not paying their fair share if you look at it that way. Just because Microsoft is making so much money, they should be punished? If you have a problem with them making money, you should invest all of your savings in MSFT and reap their dividends until they are not making enough to pay you any more.
I believe this is the worst time to add to unemployment. My view is that people would rather keep their job and pay a higher tax than to not have a job at all and pay no taxes. Allowing Microsoft to keep the jobs in the US will help keep our unemployment down. The changes Obama is pushing for should be made during a bull market, not a bear market.
Conor
You are correct.
The current system in which, over 50% of the people do not even pay $1 in federal income tax, for the privilege of living in the US, is about to punish the other 50% even more.
This going to cost the US more jobs as more businesses elect to open in jurisdictions more favorable to business.
That’s an even better way of putting it
“but you feel it’s ok to see money ‘rightfully’ due our government leave the country???”
This comment made me throw up a little in my mouth…
come on konner,
It is only right to punish the innovative and reward the ineffective, we all know that.