Flight Of The Golden Goose

In a country with scant crude oil production of its own, the virtual energy boom has changed the canton or state of Zug, about 30 minutes' drive from Zurich, beyond all recognition. Its economy was based on farming until it slashed tax rates to attract commerce after World War Two.

SHUT. UP.

Lower taxes do that?

Screencap that article; there's no way Reuters' online editor meant for that startling admission of basic economic truth to see the light of day.

Over the past six months companies including offshore drilling contractors Noble Corp and Transocean, energy-focused engineering group Foster Wheeler and oilfield services company Weatherfield International have all announced plans to shift domicile to Switzerland.

Remember when the US was the land of economic opportunity?

UPDATE: Great quote from a Master Of The Fuckin' Obvious:

"They are still making some money by having lower taxes on companies," said Lee Sheppard, contributing editor to Tax Notes, a tax journal based in Washington DC.
"But they're not ever going to be making the amount that other governments are annoyed about losing."

Ahhh, such wisdom! Perhaps yes, MOFO; but Switzerland's winning strategy seems to be that they recognize 20% of something is still more than 40% of bupkis.

You fuckin' pinhead.

From Drudge.

Posted by: LauraW. at 09:06 AM

Comments

1 Obama's next idiot idea will be to annex Switzerland into the United States...in the spirit of global citizenry and all.

Posted by: Stitches at March 12, 2009 09:12 AM (KyqYb)

2 As a business owner, I say good on them. It sucks that Americans will lose jobs over this, jobs that can be laid at Obama's feet, but it is one of the strongest middle fingers you can give him. "How you like me now, bitch?"

Posted by: Stitches at March 12, 2009 09:15 AM (KyqYb)

3 The leviathans of industry are leaving the lamprey infested waters? Who would have thunk it?

K

Posted by: Kestrel♠ at March 12, 2009 09:17 AM (zccHr)

Obama's next idiot idea will be to annex Switzerland into the United States...in the spirit of global citizenry and all.

Obama wouldn't do that, every household there has scary assault weapons, as required by their government.

Also, 99% of Swiss women come equipped with ABS.

(Ass Bigger than Shoulders)

Posted by: TC at March 12, 2009 09:17 AM (DYJjQ)

5 That's good news for the rest of us that can't move out of this administration's reach, because Obama will get his taxes.

Posted by: kefka at March 12, 2009 09:21 AM (fKivs)

Also, 99% of Swiss women come equipped with ABS.

(Ass Bigger than Shoulders)

TC at March 12, 2009 09:17 AM (DYJjQ)

I did not know that to be a trait but the only Swiss girl that I know follows that to the T. She has one of the most beautiful faces though and a smoking body from the waist up.

Posted by: polynikes at March 12, 2009 09:25 AM (m2CN7)

7
In Switzerland, they had brotherly love, they had five hundred years of democracy and peace, and what did that produce? The cuckoo clock.

FUCK SWITZERLAND'S TITS

-- Orson Welles

Posted by: Orson Welles at March 12, 2009 09:25 AM (fJdbo)

8 Get out!

Next you'll tell me that increasing energy costs, especially during a recession, stalls economic growth and can contribute to inflation.

Posted by: Techie at March 12, 2009 09:25 AM (QYuCD)

9 Corporate tax of 16% and as low as 9.5%.
Is it any wonder that US companies would consider ditching our 36+% tax rate for these MUCH lower rates?

No brainer.

The dihimiKKKrats^ŠŽstrike again! They will turn the Home of the Brave and the Land of the Free into a complete Welfare Nanney State with the only industry being shoveling shit out of the horse and cow barn down of the Commune.

Dang, I hate those radical, leftist, pinko, commies in charge now [^{and them's their good points}].

Posted by: TennDon at March 12, 2009 09:33 AM (o6Yv2)

10 >> 20% of something is still bigger than 40% of bupkus.

I was told there would be no fuckin math on this blog.

Promises were made.

Posted by: Dave in Texas at March 12, 2009 09:37 AM (IVtOG)

11 I wish Canada would try this. All that American money and know-how, looking for a place to escape, and here we are, just a few miles to the north, speaking the same language, same culture, everything. But no, Trudeau infected us with the same socialist clap back in the 70s that Obama's spreading to you.

Posted by: Dr Mabuse at March 12, 2009 09:39 AM (AVYqB)

Obama will just institute a special "employees who work for companies that moved to other countries with lower tax rates" tax.

Posted by: Steve L. at March 12, 2009 09:39 AM (Gkhxf)

13 The missing element from traditional economic math is hope. Y'all are excused from not being hip to this since you're not true believers, but the science is settled on this matter now.

Posted by: tachyonshuggy at March 12, 2009 09:40 AM (TXp3z)

14 It's like Galt's Gulch but without the invisibility shield. Or like Delaware but without Joe Biden.

Posted by: PalinFan at March 12, 2009 09:46 AM (5Ig1V)

Isn't this why U2 is based out of Switzerland now?

(You won't find that on Wikipedia, by the way.)

Posted by: FireHorse at March 12, 2009 09:49 AM (5KNeJ)

16 In Switzerland, they had brotherly love, they had five hundred years of democracy and peace, and what did that produce?

Always loved that line from The Third Man, but it's not quite accurate. As I recall, the Swiss produced some of the most feared mercenaries of the medieval and renaissance world.

A country that has super-low taxes, requires it's citizens to own assault weapons, and produces mercenary bad-asses can't be all bad.

Posted by: IllTemperedCur at March 12, 2009 09:49 AM (ZR5Ik)

17 I know Thomson Reuters set up a ownership company in Switzerland just to take advantage of the tax situation which saves them millions each year and allows them to fund other projects - read create jobs.

Posted by: 6Kings at March 12, 2009 09:55 AM (5ghEP)

18 Well, that's not fair.

Posted by: Typical Economically Illiterate Lefty at March 12, 2009 09:55 AM (B+qrE)

19 It's "Weatherford", not "Weatherfield".

Posted by: FreakyBoy at March 12, 2009 09:57 AM (6An7Z)

20 Quite frankly, Canada is looking better than the US right now. Canada's socialism is moderate compared to the horseshit visions of Obama, Pelosi, and Reid.

And that's without considering pure corruption as well.

Posted by: grognard at March 12, 2009 09:57 AM (sPO/s)

21 The answer for the USA is clear. Raise taxes more.... and bitch about Rush Limbaugh.

Posted by: jukin at March 12, 2009 10:03 AM (vkkNZ)

6Kings @ #17

That's exactly why my employer, Transocean, made the move. We are as Texan as team roping but there are indeniable tax benefits to yodeling in Switzerland rather than in an Eddy Arnold song.

Posted by: DaveDave at March 12, 2009 10:04 AM (RI5ox)

23 Remember when the US was the land of economic opportunity?

Yep. And I remember when we made things! Tarifs and regulation on offshore tax shelters. That's the ticket.

Posted by: RRowdy at March 12, 2009 10:08 AM (D2t2Y)

What?! There are economic rules? High taxes and unecessary regulations actually discourage the creation of wealth?

Come on, that's the old way of doing things. Everybody knows, at least since the first of this year, that massive government spending and cap and trade policies are how you rescue a faltering economy.

Just look at the DJIA if you need proof.

Posted by: BackwardsBoy at March 12, 2009 10:10 AM (ZGhSv)

And I remember when we made things!

Episode #256: Our hero once again points the US manufactures a trillion and a half dollars worth of "stuff" annually.

That's the eighth largest economy in the world, by itself.

My point? Cut it the fuck out already.

P.S.: I like being the hero.

Posted by: Circa (Insert Year Here) at March 12, 2009 10:18 AM (B+qrE)

26 That was not a very Hopey Changey article from Reuters. Obama singled out by name as a cause of capital flight.

I'd love to see the follow-up article, "Swiss cantons raise business taxes in order to discourage alarming growth".

Posted by: t-bird at March 12, 2009 10:18 AM (FcR7P)

27 Circa:

Sorry your post made zilch sense to me. WTF are you talking about?

Posted by: RRowdy at March 12, 2009 10:39 AM (D2t2Y)

28 Heck, screw this. These FIFA, Medicare, and SS taxes are killing us too!

Posted by: Rainbow Hope Unicorn Ranchers, Inc. at March 12, 2009 10:42 AM (nC/uT)

Sorry your post made zilch sense to me. WTF are you talking about?

Let's abandon the meme that the U.S. doesn't manufacture anything...PLEASE.

It's union-inspired bullshit.

Posted by: Circa (Insert Year Here) at March 12, 2009 10:45 AM (B+qrE)

30 Thanks for your clarification. I didn't mean to imply we don't make anything. But it's not just the unions that have noted we walk into Walmart and are hard pressed to find anything made in America. And of course that is the fault of capitalism at it's logical extension: cheapest prices; largest profits.

Posted by: RRowdy at March 12, 2009 10:53 AM (D2t2Y)

But it's not just the unions that have noted we walk into Walmart and are hard pressed to find anything made in America.

I don't want my kids making clothes or toilet paper.

Satellites, cars, airplanes, chips...yes.

You?

Posted by: Circa (Insert Year Here) at March 12, 2009 11:02 AM (B+qrE)

32 They might be a bit up there in altitude, and be a touch deficient in O2, but they're onto something!

Too bad we can't import that kind of logic....

Posted by: Maha Rushie at March 12, 2009 11:02 AM (Qs2v/)

33 Profit is not a four-letter word, RRowdy.

I might also note that when goods are inexpensive, poor people's standard of living rises. How much do you want people to pay for children's clothes?

Posted by: lauraw at March 12, 2009 11:04 AM (XMlGE)

Another thing the Swiss do is "private tax treaties." If you make enough money, you can actually negotiate your tax rate if you move there. That's why so many rock stars and movie stars live there. When they aren't telling the rest of us to pay our fair share.

Because 5% of U2 is more than 100% of the whole Swiss rap industry.

Posted by: Bob Hawkins at March 12, 2009 11:15 AM (eZ0vq)

I don't want my kids making clothes or toilet paper.

Satellites, cars, airplanes, chips...yes.

You?

Posted by: Circa (Insert Year Here) at March 12, 2009 11:02 AM (B+qrE)

Hmmm... let's think about this. 52% of Americans just voted for a guy with absolutely zero relevant experience and a 20+ year track record of supporting organized crime, racism and terrorism to be President of the United States, solely because he's black and marketing gimmicks like HOPE and CHANGE that were pandered without definition, substance or a plan.

So, going with the percentages, I would conclude that I would say that 52% of the country isn't qualifed to make clothes or toilet paper. The funny thing is, most of the same 52% would tell you that toilet paper is a terrble thing forced on us by evil corporations and it's totally unnecessary and not "environmentally conscious".

Ain't no fucking way I want any of these idiots anywhere near something as complicated as a satellite, car or airplane. It's not as if any of this same 52% would soil themselves by actually making any of these horrible, Gaia-destroying tokens to corporate greed anyhow.

The way we're going, the only thing the US will be capable of producing in 5-10 years will be bongs, animal product-free drums and washable ass-wiping pads.

Posted by: Damiano at March 12, 2009 11:30 AM (cfKer)

36 Here's another factoid for you, Circa...

Right now, American's don't produce most of these things. They're generally too stupid. White collar Americans own the companies that produce hi-tech stuff, but they hire Chinese and Indian people on H1Bs to come here and actually make the shit.

This is the hidden guarantee of failure for Obama's grand economic plan. He's going to "save or create" H1B jobs in America.

I'm not saying all Americans are stupid; only the 52% who seemingly believe that Santa Claus not only exists, but he's black, lives in the White House and can be counted on to give them gifts like free mortgages, free cars, free kitchen, free heathcare and... dare I speak it... free unicorns.

Posted by: Damiano at March 12, 2009 11:40 AM (cfKer)

37
Always loved that line from The Third Man, but it's not quite accurate.

DONT TALK SHIT ABOUT THIRD MAN!!!

Posted by: Darling, just an entertainer at March 12, 2009 11:42 AM (9FSlT)

Right now, American's don't produce most of these things. They're generally too stupid. White collar Americans own the companies that produce hi-tech stuff, but they hire Chinese and Indian people on H1Bs to come here and actually make the shit.

H1B's are capped, so I don't buy your entire premise.

What we all agree on is the need for more business friendly tax policies and less "let's try and completely destroy Reaganism".

Posted by: Circa (Insert Year Here) at March 12, 2009 11:47 AM (B+qrE)

39 "DONT TALK SHIT ABOUT THIRD MAN!!!"

Oh, come on! It wasn't in Obama's collection of 25 classic movies, so how good can it be?

Posted by: Dr Mabuse at March 12, 2009 11:54 AM (AVYqB)

"But they're not ever going to be making the amount that other governments are annoyed about losing."

He says this because the leftist answer to this problem is to try to force countries like Switzerland to claim higher taxes.

They essentially want to collude on prices. Everyone should charge the same tax rate (which would be 65% income).

The very reason all these socialist countries are failing is because of predatory Switzerland who is not a team player.

Their tax policy is major diplomacy issue for them with the EU.

Posted by: Entropy at March 12, 2009 12:01 PM (m6c4H)

41 H1B's are capped, so I don't buy your entire premise.

Posted by: Circa (Insert Year Here) at March 12, 2009 11:47 AM (B+qrE)

Three big problems with that false sense of security:

1. The cap does not include H1Bs already issued, nor does it include renewals. I used to run an IT consulting firm. I was one of 2 American citizens in the entire company. The owner was here on a T1 visa, which he switched to after spending about 6 months in Canada after being here on an H1B. All we did was send him and any other consultants over the boarder to Mexico at renewal time to get their documents stamped after we sent in $1500- $3000 to the Feds. The cap is only representative of how many jobs are added each year, not how may jobs we are limited to.
2. There are several types of "temporary" visas. H1Bs are just the most common in the IT sector. As previously mentioned, the easiest way around the cap is to stop off in Canada long enough to become a citizen (about 60-90 days), then come here on a T1 which has no cap.
3. Democrats have consistently been increasing the cap on H1Bs and other "temporary" visas. I believe that the cap has more than tripled since Clinton, due to legislation he pushed through, and keeps going up.

Respectfully, saying that you "do not buy my premise" is ignorant to the clear facts. Walk into any high tech company and have a look or take a gander at technology-focus message boards for developers, programmers, DBAs, etc. I spent almost 2 years in the business. Out of thousands of resumes I received per week, I could count on one hand how many came from American citizens. Nearly all of them were individuals or consulting companies who were looking to place their H1B workers. Heck, all most consulting company are are visa administration and worker recruitment and placement when you get down to it.

I wish that your view of things were accurate, believe me. Sadly, it's not.

Posted by: Damiano at March 12, 2009 12:15 PM (cfKer)

42 Ahhh, such wisdom! Perhaps yes, MOFO; but Switzerland's winning strategy seems to be that they recognize 20% of something is still more than 40% of bupkis.

Well put.

Posted by: Alana at March 12, 2009 12:19 PM (JE2zV)

43 I need to figure out where to launch my offshore holding company in a couple years once the rest of the guys are out of the Army and our venture capital guy comes through. We were thinking the Caymans for the weather and the tourist chicks, but maybe...

Posted by: SGT Dan at March 12, 2009 06:39 PM (1pJbs)

44 "Their tax policy is major diplomacy issue for them with the EU."

Of course, the Swiss can tell the EU to fuck itself because they're smart enough not to join the EU. In reality, most individual Swiss cantons have more autonomy from Bern than EU member "countries" have from Brussels.

Hell, Switzerland wasn't even a member of the UN until 2002.

And they still aren't parties to the NNPT. I've been convinced since the last time I was there, more than ten years ago, that the Swiss have nukes.

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