It's amazing to me that so many people are oblivious to the pending trauma that may occur if we default on our national debt by not raising the debt ceiling. Interest rates will rise for everyone and the cost of everything will go up. How will that help us achieve a balanced budget? Tea Party advocates repeatedly claim that we need to grow our economy to increase government revenue and the only way to do that is to lower taxes and government regulations.
Let's look at the world's current most successful economy and see how they manage things. That economy is China, both the largest creditor of the U. S. outside of the Social Security Trust Fund and now the manufacturing base for many of the products used by Americans. They are not even a Capitalistic society. They are a totalitarian regime with rigid control by the central government and that rigid control keeps working conditions abysmal and wages low. That totalitarian regime is able to lend America trillions of dollars because the Chinese government has lots of money.
Where do they get that money? Do you think the successful manufacturers in China just share their money with the government because they love it or do you realize that China has taxes too? The Chinese government controls everything that Chinese business does if you don't realize that, I fear for your sanity. Check out http://www.taxrates.cc/index.html to see how much the Chinese system demands in taxes. This site shows that they have a progressive income tax system that requires their richest citizens to pay 45% far above the 35% our richest citizens pay. They do have a lower corporate rate of 25% compared to our 39.2% but if you continue reading you will see they have a VAT,aka sales tax of 17% while the U. S. leaves the sales tax issue to the states and none have higher than 7% for the state and probably no more than 3% for the lower levels of government. Keep reading on this site and you will see that they also have a multitude of other business taxes which evidently rake in enough money to make China able to lend money to the rest of the world. Their tax rates also have several lower rates for industries they want to encourage like high tech and yes green industries.
Some day the Tea Party folks are going to realize that government services are not free and different governments use different forms of taxation to get to the same place and that place is where ever they decide will give them enough money to run their country. I don't know about the rest of you but I think that when an American company would rather pay taxes to China they should have to move there. Now their CEOS use the slave labor available there and lower Chinese corporate rate along with the lower U. S. rate on income to milk both systems.
They keep telling us America is the greatest country in the world while they do everything possible to bring the wages down of American workers and get an even better income tax rate for themselves. It just seems basically Unamerican for a company to pay taxes to another country that turns around and lends it to America. This is a grand scam and the American people are the suckers.
