Friday, March 21, 2008

Labor Costs the Problem? Maybe Not

Wonder why all those manufacturing jobs are leaving the USA?

Charlie points to a study which reveals reality. Although this is called "startling" by the Tax Foundation (which authored the study), I have mentioned more than a few times that tax- and regulatory- costs in the USA (and Wisconsin) have a serious impact on business viability--thus, on job prospects and job-security of 'the common man' in this country.

In other words, it is NOT "cost of labor" alone which makes off-shoring our manufacturing sector desirable.

...most American states tax job providers at a higher rate than any other country in the developed world.

24 states have a combined corporate tax rate higher than top-ranked Japan.
32 states have a combined corporate tax rate higher than third-ranked Germany.
46 states have a combined corporate tax rate higher than fourth-ranked Canada.
All 50 states have a combined corporate tax rate higher than fifth-ranked France

The highest total tax rip in the world is found in Iowa (41.6%), followed by PA., MN., and MA.

Wisconsin is 15th in the whole WORLD, with a total rip of 40.1%

Lowest in the US is Wyoming (35%), which does not have a corporate income tax.

The really bad news: regulatory costs (IRS, OSHA, EEOC, ERISA, and State entities such as DNR and DOR, are not addressed by this study. Americans for Tax Reform estimates that total tax/reg costs in the USA amount to 53% of national income.

The propensity to tax and regulate every single transaction or interaction, (major or extremely minor) largely championed by Democrat politicians, is eviscerating the financial viability of the prospective or current employers of the common laboring man, not to mention a lot of his white- and pink-collar colleagues and neighbors. The Republicans are hardly blameless--but the US is on a commercial-homicide course which should be re-examined very carefully.

1 comment:

James Pawlak said...

Is read economic growth inversely proportional to the proportion of attorneys in the general population?