Email from College Professor Regarding Unions and Corporate Tax Avoidance

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I’d be curious to hear your thoughts about this.

Sincerely,

AriMy Reply

Hello Ari

If it was up to me I would dramatically lower corporate income tax, perhaps abolish corporate income tax altogether.

I have commented on this before in my blog.

Current tax policy begs corporations to take both jobs and money and hold it overseas. Small corporations unable to do what larger corporations are stuck. If we want to have a corporate tax, it needs to be uniform, and if we want to defer taxes on it, that should only be on money held in the US not overseas.

We have it ass backwards, encouraging the flight of both money and jobs.

In regards to unions, I have few problems with private unions although in general unions destroy competitiveness vs. non-union shops over time. Toyota vs. GM is a classic example.

The recent happenings at Boeing is another good example Please see Inside the Self-Destructive Minds of a Group of Idiots and a followup post Defense Contractor Employee Chimes in on Boeing and the Need for C-17s as perfect examples of destructive union behavior.

One problem I do have with private unions is the PBGC (taxpayer guarantee) of union pensions. I have other issues but they are minor in comparison with public unions.

At least with private unions there is a counterbalancing force and negotiation on both sides. In regards to public unions, there is no one watching out for the public. They should be illegal.

As a historical note, some of the blame for this mess goes back to President Kennedy and his executive order authorizing collective bargaining for union employees.

In a further exchange of emails, Ari noted he was a new reader, not familiar with previous posts on these subjects.

I welcome the chance to elaborate on many positions.

Tuesday, October 13, 2009: Thoughts on the Economy: Problems and Solutions

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Tuesday, January 20, 2009: Open Letter To Congress On Sharing The Pain

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Mike “Mish” Shedlock
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