General Motors (GM), post-bailout, took taxpayer dollars to stay alive, but will build even more cars abroad, and create more jobs abroad. Read that as a “thumb-of-the-nose” to President Obama.
Apparently, GM is leaking information to Capitol Hill legislators. The number of GM cars built in Mexico, China and South Korea will “roughly double.” Those cars will then be shipped to the U.S. and sold here. GM manufacturing interests abroad is expected to increase from 15 percent to 23 percent over the next five years.
A simmering pot is reaching the boiling point. Did GM forget that Barack Obama owns them now? Obama doesn’t like those overseas jobs. Obama doesn’t care a fig about profits. His plan is to provide jobs and infinite union benefits. Who needs profits. Socialism doesn’t need profits.
There is speculation about what the COO (Chief Organizing Officer) of GM, President Obama, will do about this: will he yield to GM and try to stave off his union pals here in the U.S., or will he tell GM they will not send these jobs abroad? Isn’t it amazing that we need to speculate about a U.S. President wielding such enormous power?
I believe it’s a no-brainer. Obama will tell the automaker they must keep these jobs in the U.S. even though there is no chance of profitability. This is not a problem for Obama. He has told Governor Arnold that he will snatch-back stimulus dollars unless Schwarzenegger rescinds his pay cuts to unionized state health care workers. Obama enjoys these private-business, in-your-face moments. These are opportunities for Obama. These are joyous moments for this administration.
One thing we must understand: Unionization is the Obama program. Unionize everyone. Punish everyone not a union member, punish every company without unions. This is socialism. Unionization, in one form or the other, is how socialism establishes itself.
It will be interesting to see how this works with the announcement this week that an American business doing business overseas and paying taxes to the hosting country, will now also pay taxes in the U.S.? I wonder how GM weighs this plan? Hmmmmmm, maybe GM can pay taxes “over there,” and “over here” and still be more profitable than in the U.S. where, under the Obama plan, they must toil purely to create union benefits.
The United States is the last major economic power to tax the profits of locally headquartered companies if that income is earned abroad. Other nations, including most recently Japan and Britain, are moving to a territorial system that taxes only corporate profits earned within their borders.
Instead of following that trend, Obama proposes to move in the opposite direction.
Will a thumb-of-the-nose to Obama result in a poke-in-the-eye to GM?