Reader letters July 23

Jul 23, 2014

High taxes force out U.S business

To the editor:

Mega drugstore chain, Walgreen’s, is considering a merger with European competitor, Alliance Boots. Walgreen’s would move its corporate headquarters to Switzerland and lower its effective corporate tax rate from 31 percent to 20 percent.

Walgreen’s is just one of many American firms contemplating using the tax reducing strategy called inversion. The economically illiterate are having a hissy fit. They are concerned about the revenue lost by government. Walgreen’s actions are being called everything from “unfair” to “unpatriotic.”

Sen. Dick Durbin, from Illinois, told The Chicago Tribune, that he is “troubled by American corporations that are willing to give up on this country and move their headquarters for a tax break. It really speaks to your commitment.” What’s amazing is that Durbin and other statists do not understand how the market works.

Business exists to turn a profit, not to fill the treasuries of government. And businesses make a profit by providing a good or service at a lower price than competitors. It should surprise no one that companies would consider moving abroad. But, try telling Durbin and his ilk that it’s their beloved government’s fault that U.S. companies and the jobs they provide have gone overseas.

Back in October, this commenter predicted medical device companies would jump ship due to Obamacare’s new excise tax making their products more expensive to produce. Sure enough, last month medical device giant Medtronic announced a proposed $42.9 billion offer to buy Irish company Covidien and make lower tax haven Ireland its corporate home.

The ability of business to move offshore is the check against government raising taxes forever higher. Otherwise, consumers of government services will continue to demand more and taxes on business will be raised higher.

As Chief Justice John Marshall believed, “the power to tax involves the power to destroy.” If America is going to retain its business and re-acquire businesses that have left, we need to compete with the rest of the world.

Americans need to understand that there are consequences to the profligate spending of government and the over regulation and taxation of business. The sooner Durbin and his ilk understand this, the better.

Kenn Jacobine

Waynesville

Prison project can rebuild dreams

To the editor:

As I sat at the commissioners’ meeting on July 21, I was sad to hear the perception of the residents of some of the Hazelwood Community. I too am a resident of that community and have no reservation about my new potential neighbors.

I know firsthand the security that is in place to hold the customers accountable and the dedication of the staff and local law enforcement to assuring a high quality operation. The saddest part of what I heard was the lack of understanding of those who are without a place to call home. In the past month, I have dealt with “These people” who have been a homeless senior citizen on oxygen, a homeless youth whose mom decided a boyfriend was more important and several homeless families.

This day and age homeless touches many who are nontraditional. No longer is it males like many think. Currently on the Section 8 waiting list there are hundreds and hundreds of names, many of which have been on there a long time. The majority of those people who have waited are elderly, disabled and working. Many fail to realize the difference in a living wage and minimum wage.

In Haywood County, minimum wage earners simply cannot pay fair market rent. I encourage everyone to go into a classroom of children and ask them what they want to be when they grow up. They don’t say homeless. Children have hopes, wishes and dreams. By tearing down the fences, many dreams can be rebuilt and realized.

Patsy Dowling

Waynesville

Comments (1)
Posted by: Charles Zimmerman | Jul 30, 2014 09:10

          "Inversion" is an act of treason. Any business that choses not to meet their obligation to pay their fair share of OUR indebtedness by hiding their profits in over-seas tax-shelters should be tried for treason and if found guilty, have the entirety of their assets seized, including those of their shareholders, with the managers who instituted such nonsense publicly executed.

 

               C.Z.



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