Obama's Economic Berlin Wall

Obama's Economic Berlin Wall - The White House went on a mission this week to establish an economic Berlin Wall around American business. In a spectacularly misguided policy, the Obama Administration has proposed that the US Congress force US business interests that do business overseas and hold their profits overseas to pay US income tax on those profits irregardless whether or not those profits are repatriated to the United States.

The United States government enforces a particularly discriminatory tax policy known as worldwide taxation. Currently if a US business interest makes and sells a product overseas, pays the income tax in the overseas tax jurisdiction, the US government then taxes the profits of the US company. In almost every other country, territorial taxation is practiced. If a French company makes and sells a product overseas, the profits are taxed in the overseas tax jurisdiction, but when the French company repatriates those profits back to France, the company gets to keep those profits. The French government does not tax those profits again.

London Summit

In pledging to clean up the world's financial mess, Prime Minister Gordon Brown of Britain has pledged to go after tax havens and force them to cooperate as vassal tax collectors for Europe's and America's welfare states.

This tax cartel of high-tax nations arrogantly thinks that it is entitled to the capital built up by individuals and families.

It's not.

Capital belongs to the individual. It is the individual that has the right to the fruit of his labor. Not the state.

It is the foolish and stupid financial policies of the two largest nations in the Group of Twenty that have led to the financial catastrophe in the world. The cities of London, New York, and Washington DC are the source of this mess. The tiny tax havens throughout the world such as the Cayman Islands, Switzerland, etc., already have tax information exchange (for cases of probable cause), or tax withholding, agreements with the U.S. and other countries such as the U.K. and France. They apparently are also better regulated than New York, London, and Washington.

Europe and America are reaping the consequences of 95 plus years of central banking, fiat currency, fractional reserve banking, class envy, and coveteousness.