William Thien

Archive for the ‘Outsourcing and Tax Breaks’ Category

I recently received a note from one of my credit cards that said due to the massive security breach at Equifax I should do my taxes early in order to avoid having someone false file them.

As a result I have been paying closer attention than normal to the tax bill recently ratified by our elected. This tax plan calculator gives you a guesstimate of how the new tax plan will affect your taxes.

Trump Tax Plan Calculator: http://taxplancalculator.com/

One of the pros of this new tax plan is that corporations have had the taxation of profits lowered substantially. That is the meat of the tax plan if you ask me. And that’s a good thing. The previous rendition of the tax code drove profits offshore into secretive banking accounts and resulted in lost tax revenue and the offshoring of jobs. Makes you wonder who the F is running this country, Americans or foreigners? You know what they say? Follow the money.

So The Trump Administration gets some serious Kudos for that. Great job! Bring it back home, Donny! Way to go!

In my case, since I have no property or dependents to write off, the only benefit to my taxes was that my standard deduction was doubled and that resulted, supposedly, (guesstimate) in an annual savings of $577, not much when were I to put in several dependents and a piece of property on my filing, my refund would be pretty substantial.

Now that’s not to say it is not a good taxation scheme (all systems of taxation in The US appear to me to be some form of lobbied “scheme” and that’s exactly what they are). And the benefit many received in the form of mortgage interested deductions has been reduced. To me, that makes good fiscal sense. The fact that the dependent tax credit was increased substantially to me is fiscal folly. Most of those dependents use public services throughout their lives (50% of all babies birthed last year used Medicaid. 50%. And they got a tax break, too. Really!) and to give a tax break to those who use those services is like paying people to buy your products. Unless you are the government, you won’t be in business very long. But hey, how else are our elected going to get re-elected? Half of them can’t even form a complete sentence, so they have to give our money away. That’s all they know, and there isn’t anything you can do about it. Or is there?

So, it is still an extremely unfair tax code if you ask me, just less so than before. And for that, I have to give kudos to our elected which ratified the new “scheme.” The others, they can take a long walk off a short pier.

Let’s hope it is a start that gets the ball rolling in the right direction. Maybe there will be some momentum to improve taxation in The United Sates. Let’s hope they can bring our taxes down more and tax those that deserve to be taxed, tax those who use all the services for example, and provide some relief for those who use very few services instead of just the opposite, which is what it is now. WTF?!

Because though we don’t have a socialist government, it is through the tax code that massive wealth is redistributed in this country (so basically we have a socialist government) and that doesn’t seem to have changed much with this new taxation “scheme.”

There are some good things in this new scheme of taxation and some serious things that still need to be addressed, with fairness being the biggest issue to me that needs to be addressed.

So Kudos are in store.

But because it involves taxes, I have to say kudos…kudos so far, so good, so what.

Because at my age, when I look back at how much someone with some children and a house payment received in tax refunds over the years compared to what I have received when making the same salary but with no children or property, I could have bought a house for cash with what that money the other has received in refunds, yet they use all the government services in comparison.

Through the tax code the socialist US government has been giving them my income because they have children and a house payment and taxing me and people like myself in order to do that.

And you know what that is? That ain’t right, that’s what that is. Doesn’t matter which way you look at it. I’m just the first one to say anything about it and you can bet they are working overtime to shut me up, too. You can bet on it. Because that’s what communism does. That’s what collectivism is. It’s mob rule whether they are right or wrong.

Copyright © William Thien 2017

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Decades long (Greenspan to Yellen) monetary policy aimed at continually diminishing the strength of the currency for the regular population is in and of itself justification enough to respond.

I believe Washington has chosen monetary policy that forces the public to work longer hours for less income with the desire of increasing productivity at the expense of American working classes and their quality of life.

It has nothing to do with the general economy. The labor statistics coming out of Washington are false.  We’ve all known that for many years. The statistics don’t include the perpetually unemployed or the unaccounted for in industrially blighted urban areas. Therefor, the numbers are unreliable. So why the constant attempt to weaken the dollar?

Is it about selling more American made goods overseas? Somewhat, yes. But in my opinion it is more about squeezing the American working classes to get them to work harder for less, increasing the speed of the treadmill so to speak through weakening the dollar, thereby increasing productivity.

Again, if you weaken the dollar, if you systematically do so while steadily increasing inflation, a person needs to work harder and/or longer hours to get what they want or need or they must borrow more. A weaker dollar buys less and it buys less everywhere you use it even at home, not just overseas when you travel. The thing of it is, it’s not a function of the economy, it’s not happening on its own. It’s policy!

That’s what the FED has been up to starting with Greenspan, what the parties have been up to starting with Clinton, NAFTA and MFN for China, and the dollar.

You are getting squeezed by the FED/Washington establishment and the same people you elected. If money is speech as the Supreme Court determined, by weakening the dollar your voice is also being muffled. Directly.

The dollar isn’t too strong. Rather, Washington may be too powerful, too disingenuous.

I heard a debate on the radio this morning on the way to work. During the broadcast they were talking about a Constitutional Convention. Maybe it’s not such a bad idea.

I myself say, “What do you mean I don’t sound like a conservative? You are full of it. You can be a conservative and still be a working stiff! Conservatism isn’t just for the very wealthy. That’s something else altogether. That’s the monetary policy we have now.”

Copyright © William Thien 2017

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A debate should be had about claims of “Made in America” of globally sourced components. If a manufacturer can assemble something in The US that is made up of globally sourced components, should the manufacturer be allowed to put The American Flag on their product?

Many think not and I’m inclined to agree with them. Often all it takes is for one part of the “globally sourced” components to fail and then the product is useless.

It’s better to simply just buy foreign products from a county of your choosing in that case as you are not being misled in a sense by the big display of The American flag with the small print “of globally sourced components.”

If a manufacturer wants to put The American flag on their product that is assembled of globally sourced products, maybe they should be required to put all of the flags of the countries from where their product’s components originate and put those flags right next to the American flag since many people can no longer read.

Copyright © William Thien 2017

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Today while watching Face the Nation the point came up that the current administration’s deportation and immigration policies were resulting in the deportation of “good hombres,” and not just “bad hombres.”

The object of that discussion and others I’ve heard like it is in my opinion to change the subject from the original reason for the aggressive implementation of border policy in the first place.

Please see note following this observation. I’ve tried to come up with a solution to this problem of immigration from countries at close proximity to the United States for some time as other have as well.

Americans want stricter immigration policy not so much to get rid of the “bad hombres,” which is of course significant in and of itself, but to prevent the undermining of the American middle classes and working people.

It’s not just bad hombres that have undermined the working classes in America, it is immigrants of all types, good hombres too that are coming to America in huge numbers and willing to work for pennies on the dollar under the table while at the same time there has been no enforcement of immigration policy of any measure coming from previous administrations for decades. There has been little or no enforcement of immigration policy even though the tax payer has been paying for it to the tune of many billions of dollars a year.

The result has been lower wages for the American worker and fewer jobs. Large corporations have applied for H-1B visas to replace their American workers and those same corporations are giving their American employees severance packages predicated on the fact that the American workers have to train their foreign H-1B visa workers who replace them. In other words, if you don’t train your foreign replacements, you don’t get your severance package. AND CONGRESS HAS BEEN THE ENABLER ALL ALONG!

Immigrants are coming here and taking American jobs and huge US-based multi-national corporations have lobbied congress to be allowed to take American jobs south of the border through the implementation of NAFTA. It’s an untenable situation for the American worker.

The American working classes are at a point where if something isn’t done about it, the middle classes will finally collapse under debt load and the lack of opportunity that the influx of immigrants, illegal or otherwise, coupled with NAFTA creates. Everyone knows this. Congress knows this. The current administration knows this. And the voter who elected Trump is keenly aware.

I don’t know anyone that wanted things to turn out this way but let’s not change the subject. Everyone in the country knew this day would come. It’s not what side of the tracks you live on or where you live, it’s not what car you drive, it is simply about citizenship and the right to work in The United States and it’s a totally valid position to take.

From what I can tell what the voter is saying, what the American worker is saying is that America has come to the point where regardless of whether they are good hombres, bad hombres, or whatever kind of hombres they are, if they aren’t “American hombres,” they have to go and that’s all there is to it.

Copyright © William Thien 2017

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Note: See my writings in the past about forming The North American Union, not unlike The European Union, a possible solution to the problems we are facing today. With NAFTA in place we already have the economic framework. Of course the problem with that is like Germany and other more industrial European countries, The United States would probably find itself bailing out other countries such as Mexico and those further south. So, it probably wouldn’t work just as The EU seems to be fracturing but that doesn’t mean there might not be some possible solution or alternative.

 

 

 

 

A friend recently said to me, “you know you favor a candidate that does not favor labor.” The Clintons, they said in so many words, are pro-labor.

I had to laugh. The first Clinton, ole Billy Clinton himself, ratified NAFTA and granted China most favored nation trading status, or MFN after Bush 1, Reagan, and Nixon wouldn’t even do so and they were not even considered pro-labor presidents.

You couldn’t have done more to demolish the position of labor in The U.S. than to facilitate the transfer of jobs outside of The United States through the implementation of NAFTA and Chinese MFN.

The Clintons favor labor? That’s a joke, I said, a joke upon U.S. labor.

Now that could change. But up until now, it hasn’t and she hasn’t said anything that would indicate a reversal to his executive signature.

Copyright © William Thien 2016

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A so-called conservative radio pundit recently referenced Trump’s belief that we need to scrap all of these international trade treaties such as NAFTA and TPP. The pundit suggested in his commentary that it was a bad idea to curtail international trade by ending such trade deals.

The the problem is though that the pundit mistakenly confused NAFTA and TPP as well as China’s Most Favored Nation Trading status with “off-shoring.” The aforementioned treaties are indeed trade treaties.

With respect to this observation trade or “international trade” involves the trade of products manufactured in another country and branded with the trademark or name of the company that was founded in that country.

The other type of trade, or “off-shoring” to which this observation refers, which is not really trade at all, involves a company here in The United States closing up shop and production here in The United States and off-shoring production to another country all the while stamping its name or trademark on the same products of a foreign origin and advertising at the same time that the consumer needs to “buy American.” From what I can discern, this latter example is what Trump is referencing in his commentary. Trump is referencing the sweetheart tax deals that benefit those U.S. companies involved in off-shoring American jobs and thereby putting Americans out of work and receiving a tax break at the same time.

There is a massive distinction between open trade and offering tax deals to offshore American jobs.

In my opinion, Trump has it right on this issue.

Copyright © William Thien 2016

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I was looking for a particular shop tool last night and located something ideal but when I checked the label I was disappointed to find out it was manufactured in Asia. It is well made and receives good reviews and there is nothing wrong with Asia by the way except it is my opinion a disproportionately large amount of industrial production has migrated there due often to unfair trade practices and currency manipulation that doesn’t favor The US and to which The US does little to prevent. You’ve heard this from me before, of course, for quite some time, long before this election cycle, long before some interloper picked up what we’ve been discussing here, Notes from The Silent Majority, and used it for their own.

It is a local company that offshored production, so I want to make the purchase because it is a local company, but while deliberating on the purchase a question occurred to me.

Obviously the reason companies are off shoring is because it pays. Sales margins improve dramatically in many cases when production is offshored to Asia and some other areas and there are other more indirect benefits we don’t hear about. But the incredible damage all of the offshoring has done to the US economy will have to be reversed.

So the question occurred to me: What will it take to bring industry back? Nobody seems to be asking that very question. There is a lot of talk about the damage offshoring primarily to Asia has done but nobody really seems to be quantifying and qualifying what would be required to bring industry back. Americans may never work for the wages offered overseas in many areas but in many of those areas wages are rising to become somewhat comparable and American wages are stagnant or trending downward when considering inflation.

So what can be done to bring those jobs back? Is there something the government can do to facilitate the return of those jobs that it is not doing? I know certain tax breaks are available for offshoring in some respects. Must we completely obliterate those tax breaks? Can we offer better tax breaks to bring the jobs back to American soil? Should we restrict sales of products manufactured by US concerns overseas to only be sold overseas? What is it going to take?

I think this is where the discussion in the current presidential campaign needs to focus.

The media will have to participate with the repatriation of jobs of course for after all, it is the media that has misled the public to the purchase.

Women are complaining that they are paid a fraction of what men make, which I think is rather unlikely since all they have to do is file a discrimination complaint (and they do). But maybe if those jobs were to return to the US, women would see comparable pay or something approaching that.

I think it is time to start a national discussion on what must be done to bring offshored jobs and “specifically offshored jobs,” jobs that were once located on American soil back to The United States?

Copyright © William Thien 2016

 


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