Obama’s corporate tax hike would cause Microsoft to outsource jobs

This Bloomberg article may be helpful to those Democrats who voted for Obama because they hoped that Obama would stop outsourcing by taxing “the rich” and by taxing “greedy coporations”. (H/T Club For Growth)

Excerpt:

Microsoft Corp. Chief Executive Officer Steven Ballmer said the world’s largest software company would move some employees offshore if Congress enacts President Barack Obama’s plans to impose higher taxes on U.S. companies’ foreign profits.

“It makes U.S. jobs more expensive,” Ballmer said in an interview. “We’re better off taking lots of people and moving them out of the U.S. as opposed to keeping them inside the U.S.”

…In a roundtable discussion today, Ballmer, Symantec Corp. Chairman John Thompson and the heads of smaller companies such as privately held Bentley Systems, an Exton, Pennsylvania-based maker of engineering software, said such policies would hurt domestic investment, reduce shareholder value and increase the cost of employing U.S. workers.

See, there’s a difference between what Obama thinks will happen (fantasy) and what actual will happen (reality). He is probably very surprised that corporations are responding to his socialism by shipping jobs overseas. What an unexpected surprise! Let’s recall the simplest possible economics lesson from Henry Hazlitt’s “Economics in One Lesson”.

From this aspect, therefore, the whole of economics can be reduced to a single lesson, and that lesson can be reduced to a single sentence. The art of economics consists in looking not merely at the immediate but at the longer effects of any act or policy; it consists in tracing the consequences of that policy not merely for one group but for all groups.

Obama shows no evidence of knowing this lesson. And neither does anyone who voted for him. And it isn’t just that he and his voting bloc seem to know nothing about economics, it’s that they seem not to know anything about anything. And this, coupled with disregard for the unemployment rate, the budget deficit and the national debt, is what fuels his domestic policy.

Isn’t it mysterious that Bush cut taxes across the board, and tax revenues skyrocketed, while unemployment dove down below 5%? It’s a mystery! At least it’s a mystery to people who have never cracked open a book.

How communists operate

Here’s a preview of what we can expect from someone like Obama, who has no doubt absorbed the views of many left-wing arts professors, who, like him, have probably never run so much as a lemonade stand. Chavez doesn’t even have a college degree. (I have not seen Obama’s grades, he hasn’t ever released them – but he used alcohol, pot and cocaine).

IBD writes about Chavez:

It ought to worry people that what’s happening at GM is perfectly recognizable in Caracas.

In 2004, Chavez began by expropriating cattle ranches in Venezuela, saying he only wanted to clarify property rights, not confiscate land. End result: Virtually all productive land now is in his hands, redistributed to his loyalists in serfdom.

After that, he went after the U.S. oil industry, snagging prizes like Exxon Mobil’s $1 billion heavy-oil complex on the Orinoco River in 2007, citing a different legal issue: tax disputes.

He did similar expropriations with steel, cement, ports, banks, sugar, rice, pretty much any industry that was viable.

Running out of companies to steal, he now persecutes private media — not, he claims, to stifle dissent, but to protect children from smut, his pretense for shutting down RCTV in 2007.

For the last remaining nonstate TV station, his concern is now environmental desecration, with Chavistas using the pretense of some old antlers on the wall of a Globovision executive following an open-ended state raid as the excuse to shut down the TV station.

Whatever Chavez’s legal concerns are, the punishment is always the same: expropriation and more power to the state, the two pillars of socialism.

Read the whole thing, it goes on to juxtapose Obama and Chavez. (MP3 Podcast is here)

4 thoughts on “Obama’s corporate tax hike would cause Microsoft to outsource jobs”

  1. Either Obama doesn’t understand the law of unintended consequences and basic economics, or he does understand them and doesn’t care. Both are bad.

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  2. I am having a difficult time believing that the possibility of offshoring more of Microsoft was an ‘unintended consequence’. Ballmer/Microsoft was extremely active pushing for the new administration while it was vying for power and continue to do so through their affiliation with MSNBC.

    Like

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