Skip O'Neill – Liberty for All

Ron Paul for A New Direction

Job losses again

with 2 comments

David Wu of OR helped to pass one the stupidest bills to date (HR 2847)  The bill was touted to raise tax revenue, but whose unintended consequence will be higher trade deficits and fewer American manufacturing jobs. The revenue measure will tax Americans who put their savings abroad in order to avoid paying American income taxes. It requires foreign banks to report the income earned by Americans. If they don’t, then any income owned by the foreign banks in the United States will be subject to a 30% withholding tax. The intended consequence will be that foreign banks will report income earned by American savers abroad. The unintended consequence will be to reduce the amount of American savings that goes abroad. The net flow of savings into a country causes trade deficits. As a result of this provision, net savings will flow into the United States, which will raise the currency exchange rate of the dollar, which will reduce American exports and increase American imports, which will reduce American manufacturing jobs and manufacturing investment.  Smart move Mr. Wu, were you asleep while in college when they handed out brains?


2 Responses

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  1. Mr. Wu was too busy being a preditor in college, preying on young women.

    Anti Lib

    April 22, 2010 at 3:52 pm

  2. I think the congressman probably ate a bowl of stupid for breakfast when he voted for the bill. He is out there telling you we need to invest in America and what he means is we are going to tax you. Now we have more job losses on the way and he will blame you and I.


    April 22, 2010 at 3:54 pm

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