Tag Archives: World

News

Why do corporations ship jobs overseas? What causes outsourcing of jobs?

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World Corporate Tax Rates
World Corporate Tax Rates

Here is a news story from Yahoo News that explains the problem and the cause of the problem. (H/T Dad)

Excerpt:

Large U.S. companies boosted their offshore earnings by 15 percent last year to a record $1.9 trillion, avoiding hefty tax bills by keeping the profits abroad, according to a new report.

The overseas earnings stockpile has climbed by 70 percent over the past five years, said research firm Audit Analytics. Data in its report covers the Russell 3000 index of the largest U.S. corporations.

U.S.-based multinationals do not have to pay U.S. corporate income tax on foreign earnings as long as the earnings do not enter the United States. Accounting rules also let the companies avoid recognizing a tax expense if management intends to keep the earnings indefinitely reinvested overseas.

“It would probably be nice to have this money in our country being used in our economy, but at the moment we see it growing elsewhere,” said Don Whalen, general counsel and director of research at Audit Analytics.

Conglomerate General Electric Co (GE.N), had the most indefinitely reinvested overseas earnings, at about $108 billion, while drugmaker Pfizer Inc (PFE.N) was next with $73 billion, according to Audit Analytics.

The simple answer is that Americans believe that corporations need to pay high taxes and operate under burdensome regulations. This eats into their profits, making it harder for them to grow and expand. The plain truth is that it is easier for corporations to expand and hire in countries with lower taxes and fewer regulations. Besides, who wants to be wiped out by a nuisance lawsuit just because someone spills coffee on themselves and then refuses to take responsibility? The smart play is to just opt out completely, and that’s what many corporations do – earning higher profits in more business-friendly countries.

News

Marriage was weakened in countries that legalized same-sex marriage

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A sociologist summarizes what can be known about the effects of gay marriage on society by appealing to evidence from other countries. (H/T Dina)

Excerpt:

Gay marriage will further destabilise marriage and family life in Britain, a leading sociologist has warned Parliament.

Dr Patricia Morgan told the House of Commons that same-sex marriage reinforced the idea that marriage is irrelevant to parenthood.

This was the principle factor, she said, that has caused the collapse in marriage rates between heterosexuals in countries where gay marriage had been introduced – as well as a sharp rise in cohabitation and the numbers of children born out of wedlock.

She said there was no evidence whatsoever to prove the Coalition Government’s assertions that gay marriage would bolster the institution.

She made her claims in a 22-page paper submitted at the Committee Stage of the Marriage (Same Sex Couples) Bill.

It contained a detailed analysis of marriage trends in Sweden, Norway, Denmark, Spain, Belgium, Canada and some U.S. states were gay marriage has been legalised.

[…]Spain in particular, she said, saw a “precipitous” downward acceleration in the numbers of all marriages by a 15,000 a year in first three years that followed the legalisation of same-sex marriage by the Socialist government in 2005.

The rate of decline later more than doubled to 34,000 fewer marriages a year in between 2008 and 2010.

Dr Morgan also produced evidence to show that heterosexual marriages were less stable in those countries where same-sex marriage had been introduced because they were expected to conform to the values of gay couples whose unions were often open, rather than exclusive, and far more likely to break down.

Cohabiting gay couples were 12 times more likely to separate that married heterosexual couples, she said.

Dr Morgan also predicted the widespread victimisation of individuals and institutions who dared to resist the redefinition of marriage.

“Some clearly hope that compulsion to perform same sex weddings will sever Church and state and further push Christianity out of the public arena and, therefore, consciousness,” she said.

“Undermined and stigmatised for their unreasonableness and prejudice, the moral authority of religious institutions will further retreat in favour of a narrow secular ideology, particularly as sexual behaviour at odds with traditional norms is further encouraged and advanced.”

Why can’t we stop talking about abstract concepts like “tolerance” and “homophobia” and just look at the results of legalizing same-sex marriage? We want to strengthen marriage, because marriage is better for children emotionally and financially. If we look at the results of legalizing same-sex marriage in other countries, we can know for certain whether it strengthened marriage, and therefore helped children. Rhetoric and insults doesn’t tell us anything. We need to look at the data that we have from other countries.