Daily Archives: 3 May 2017

“We pay a lot to feed the civil servants”

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That’s what Zhou Dewen, Zhejiang Private Investment Enterprise Association Director, a business lobbying group in the People’s Republic of China has said.  He, like business representatives anywhere—including here in the US—is right to be concerned.  That concern is compounded by President Donald Trump’s tax proposal.

Now, Chinese officials and executives worry that the tax proposal Mr Trump announced last week will set back China’s global competitiveness and spur companies to invest in America instead of China.

Which is one of the points of Trump’s proposal that, among other things, seeks to drastically lower our usurious business tax rates.

Trump’s proposal also is a much more intelligent, much more moral, response to American companies moving overseas than the iron curtain that ex-President Barack Obama (D) and his Treasury Secretary Jack Lew (D) tried to erect with their punishing (in every sense) taxes that they tried to impose on companies in order to trap them here.  If we’ve got one of the lowest tax rates going, it no longer would make business sense to relocate out of the US.  And, such a decision would be that of the companies’ owners; it would not be driven by Government watchdogs.

Speaking of relocating businesses for tax-based reasons,

Chinese windshield maker Fuyao Glass opened a $600 million factory last October near Dayton, Ohio, and plans other facilities in Illinois and Michigan, creating 4,500 jobs. CEO Cao Dewang caused a stir in December when he told a reporter the decision was driven by tax differences: “Overall taxation for manufacturers in China is 35% higher than that in the US.”

The PRC government is getting involved, too.

In anticipation of the US tax move, the State Council, China’s cabinet, said earlier this month the government will reduce corporate taxes by over $55 billion to “improve business conditions.” The Communist Party’s newspaper, People’s Daily, warned on Friday that the new US plan could trigger a “tax war” if countries start competing to offer the lowest rates.

Such a race to the lowest tax rates would benefit the folks of all nations involved.  Pop Quiz: which type of economy will prosper the most from such a contest?

“We pay a lot to feed the civil servants.”  Don’t we all.

EU Bad Faith

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The European Union now says that any trade deal discussions with Great Britain must come after the terms of Great Britain’s going out from the EU have been agreed.  Fair enough; it’s tough to negotiate a trade deal before the nature of the relationship between the two has been identified.

But now there’s this, too.

…EU courts must continue to have a role in Britain after Britain’s exit from the bloc.

And

They [the EU leadership] emphasize the importance of ensuring no hard border is re-established between Northern Ireland and the Republic of Ireland and even touch on issues like the future legal status of Gibraltar….

Say, what?  The internal territories of a nation are the business of that nation, and no one else’s.  Gibraltar’s “future legal status” is the same as it has been; Great Britain’s going out has no more effect on the place than it does on Wales.  The borders of a nation are the business of that nation, and no one else’s.  Great Britain’s outward-facing border along Northern Ireland is the business of Great Britain; the EU has nothing to say about this domestic matter.  The courts of a nation are the business of that nation, and no one else’s.  British courts consist of the British court system.

One of the reasons the Brits decided to leave was to regain British sovereignty over their own nation.  Either the EU peerage inhabiting Brussels haven’t been listening, or they’re being entirely disingenuous in their affront over the Brits’ impertinence in rejecting these persons’ superior abilities to govern.