The IUSB Vision Weblog

The way to crush the middle class is to grind them between the millstones of taxation and inflation. – Vladimir Lenin

Companies Already Leaving USA Over Obama’s Proposed Tax Scheme

Posted by iusbvision on March 12, 2009

This is why the so called “soak the rich” policies of the far left leave the poor and middle class hardest hit. This is also why “soak the rich” tax policies actually lower the growth of revenue taken in by the government.

Ask not for whom the tax bell tolls, it tolls for thee! – Just ask the employees of these companies who will now be out of a job.

 

Reuters News Service:

ZUG, Switzerland, March 12 (Reuters) – The tidy towns and mountain vistas of Switzerland are an unlikely setting for an oil boom. 

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.

 In a country with scant crude oil production of its own, the virtual energy boom has changed the canton or state of Zug, about 30 minutes’ drive from Zurich, beyond all recognition. Its economy was based on farming until it slashed tax rates to attract commerce after World War Two.

 Over the past six months companies including offshore drilling contractors Noble Corp and Transocean, energy-focused engineering group Foster Wheeler and oilfield services company Weatherfield International have all announced plans to shift domicile to Switzerland.

 Guido Jud, head of Zug’s tax office, said about 1,200 companies had set up shop there in 2008 — in line with the long-term average, though it is difficult to assess how many of those are foreign companies until they file tax returns.

 Swiss cantons are free to set their own tax rates. For example in Zug, corporate tax is about 16 percent but can fall as low as 9.5 percent for companies that do most of their business outside Switzerland.

America’s corporate income tax rate is 35% by comparison.

Hotair.com has some great comments on this story HERE saying :

These results are sadly predictable.  Hiking taxes in a recession only discourages investment and increases costs to consumers.  Either prices go up or jobs get lost.  When producers can’t make profit any longer, they stop producing.  None of this should come as a surprise to anyone, but the Obama administration keeps acting as though government confiscation of capital has no effect on economic performance.  As long as that incompetence remains, expect more companies to go abroad, or go Galt.

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