Archive for May, 2009

eyes glaze over

Posted in Uncategorized on May 7, 2009 by urstupidnourstupid

I know your eyes glaze over but I want to go over our corporate tax policy and explain why Obama’s corporate tax plan is bad business.

Suppose an American company wants to make widgets in Ireland. And let’s suppose a German company has the same idea. Suppose they both build a factory and sell a bunch of widgets and each show a profit of 10 million. The German company will pay the 12.5% corporate tax that Ireland requires and then brings that money back to Germany. They can invest in more research, hire more people or just pay a dividend to their shareholders. The American company has to take another route. If they try to bring this money back, they are subject to State and Federal taxes. Federal is 35%, average State tax is 3%. They get a credit for the tax they paid Ireland but it is still substantial. So rather than bringing this money home and investing it in the U.S., they leave it overseas for additional investment in Ireland. The estimate is approximately 10-13 trillion that is held overseas.

Now Obama wants to tax corporations whether they bring these funds back to the U.S. or not. The only recourse will be for corporations to move their corporate headquarters overseas where their money remains untaxed from the 2nd highest corporate tax in the industrialized world. I would prefer to remove the tax burden and let this money funnel back here so that it can stimulate the economy.


bad business

Posted in Uncategorized on May 5, 2009 by urstupidnourstupid


Posted in Uncategorized on May 2, 2009 by urstupidnourstupid

Billionaire Warren Buffett said Saturday that the U.S. government is taking the correct actions to help the economy recover. Buffett spoke briefly before the opening of the annual meeting for his Berkshire Hathaway Inc., expected to draw an audience of roughly 35,000 people.
“The government is doing the right things,” Buffett said. “They’re acting in a countercyclical manner.”

One of the richest men in the world. A pure capitalist. A brilliant businessman and investor. Respected by both sides. But yeah…he is obviously clueless in this situation according to you.

listen and comment

Posted in Uncategorized on May 1, 2009 by urstupidnourstupid

I heard this interview on NPR and I think both sides provided excellent arguments regarding the issues. If you can’t link this, go to and search for Michael Scheuer.

Going up…

Posted in Uncategorized on May 1, 2009 by urstupidnourstupid

“U.S. stocks gained nearly $1 trillion in value in April alone. And the S&P’s March-April gain of 18.7 percent is its best two-month rise since 1975.”

So it seems as if we have avoided a complete meltdown of the US and world financial markets. We are weathering the storm and though it cost us a lot of money, I think the right steps were taken. This could have been much worse. There’s a long way to go, but it’s hard to argue that we did the WRONG thing.