Interesting blog on economy, where the world is heading...

Logistics Monster, one of my fellow Read My Lipstick Network member blogs, is doing a series on 'America's Economic Collapse'. I'll have to admit I haven't read them all - yet. The one on Swiss Bank Closing Offshore American Accounts (below) caught my attention in the four-part series (thus far). Interesting points and rather scary, too.

Per the article Logistics cites, UBS is closing offshore accounts under pressure from the IRS. In broad, general terms: The Swiss have always had strict privacy rules that allowed the world's wealth to earn interest outside the bounds of their own country without taxation.

Now it seems the U.S. government has pierced the veil.

While many will be clapping their hands because those greedy capitalists now have to pay taxes on their money, there's more to the issue than just one Swiss bank handing its' customers over to be potentially prosecuted.

What's the next step? Where are we headed in this world? What's going to happen when all the money made by our home-grown businesses and individuals is pulled back into this country? Will businesses start to move to other countries? Is there a mad scramble going on right now to find other ways to shelter money? Is this the first domino or is UBS different because they've been setting up shop here in the U.S.?

This little story may end up being the beginning of a huge shift in our world!

Swiss Bank Closing Offshore American Accounts
Posted on January 9, 2009
According to Reuters, (and this post is being updated), UBS, a Swiss wealth manager, is closing U.S. clients’ offshore accounts because of pressure from the United States Government, and the IRS is benefiting.
http://logisticsmonster.com/2009/01/09/swiss-bank-closing-offshore-american-accounts/

Barack Obama And Business Taxes

Well, I published that last post, popped over to my inbox to check messages and guss what I found? Ta da, the McCain-Palin campaign had a press release prepared as a follow up to my post (yeah, right, sure they're watching my lowly blog!):

This afternoon, Barack Obama told CNN's Wolf Blitzer that there was an argument for cutting business tax rates -- despite attacking the very same tax cuts earlier today. Once again, the American people are left with a tax plan that changes by the day and is little more than just words. Check out the facts below:

"By Barack Obama's own measure, Obama now supports billions in 'tax cuts for big oil companies' and corporations that are sending American jobs overseas. The truth: Barack Obama has a difficult time coming to terms with the devastating effects of his own economic plan, is learning as he goes and just isn't ready yet." -- Tucker Bounds, McCain-Palin 2008 spokesman

Today, Barack Obama Remained Open To Cutting The Business Tax RateBarack Obama: "And, In Fact, You Can Make An Argument For Lowering The Corporate Tax Rate."
CNN'S WOLF BLITZER: "At a time of economic distress, is it wise to increase the corporate tax rate?"
OBAMA: "We're not increasing the corporate tax rate."
BLITZER: "I know, but there's some talk that you want to increase it, it's 35% right now. you talked about --"
OBAMA: "Where is that talk coming from?"
BLITZER: "I don't know, you tell me. You want to keep it at 35%?"
OBAMA: "I have no plans for increasing the corporate tax rate. And, in fact, you can make an argument for lowering the corporate tax rate, but only if you, at the same time, close all the corporate loopholes. The problem we have right now, on paper we've got a high corporate tax rate; in actual terms, corporations aren't paying their fair share." (CNN's "Situation Roo m," 10/31/08)

· Watch: http://www.youtube.com/watch?v=ehT82CXU3Bw

But Even Today, Barack Obama Decried These Very Same Business Tax Cuts

Just Today, Barack Obama Decried Giving Tax Cuts To American Businesses. OBAMA: "At a moment like this, the last thing we can afford is four more years of the tired, old theory that says we should give more to billionaires and big corporations and hope that prosperity trickles down to everyone else." (Barack Obama, Remarks, Des Moines, IA, 10/31/08)

Barack Obama: "It's Not Change When He Wants To Give $200 Billion To The Biggest Corporations Or $4 Billion To The Oil Companies." (CNN's "American Morning," 10/29/08)

Barack Obama Criticized John McCain For Proposing "Another Huge And Permanent Corporate Tax Cut."
OBAMA: "Senator McCain used the crisis as an excuse to push a so-called stimulus plan that offered another huge and permanent corporate tax cut, including $4 billion to the big oil companies, but no immediate help for workers." (MSNBC's "Countdown," 9/16/08)

In Addition To Changing His Position On Business Tax Cuts, The Obama-Biden Campaign Has Changed Their Tax Plan Numerous Times In The Past Week

CHANGE #1 ($250,000): In July 2008, Barack Obama Said: "If You Make $250,000 A Year Or Less, We Will Not Raise Your Taxes. We Will Cut Your Taxes." (Barack Obama, Remarks, Powder Springs, GA, 7/8/08)

CHANGE #2 ($200,000): In New Obama Ad "Defining Moment" The Threshold For The Obama Tax Plan For Families Seeing A Tax Cut Is Lowered From $250,000 To $200,000. OBAMA AD: "The Obama Plan: Families Making Less Than $200,000 Get Tax Cut." (Obama Ad, "Defining Moment," 10/25/08)

CHANGE #3: In An Interview With A Scranton, PA, News Station, Joe Biden Said That Only Families Making Under $150,000 Would Get A Tax Cut.
BIDEN: "Spreading the wealth was not--he was talking about is all of the tax breaks have gone to the very, very wealthy. For example you have right now, this year, under the old tax policy that was just -- that was put in by George Bush, people making an average 1.4 million a year, good people, decent people, patriotic -- they're going to get an $87 billion tax break. What we're saying is that $87 billion tax break doesn't need to go to people making an average of 1.4 million, it should go like it used to. It should go to middle class people -- people making under $150,000 a year." (Joe Biden, Interview With WNEP Scranton, 10/27/08)

· Watch it here: http://www.youtube.com/watch?v=zAEE1_IUycs

CHANGE #4: Obama-Biden Campaign Aides Said That Those Making Between $150,000 And $250,000 Will Actually Not See A Tax Increase Or A Tax Cut.
"Biden aides say his comments were actually consistent with Obama's tax plan -- people under $150,000 get a cut, and people making up to $250,000 stay the same." (Mark Murray and Mike Memoli, "$150,000 Vs. $250,000," MSNBC's "First Read" Blog, http://firstread.msnbc.msn.com, Posted 10/28/08)

CHANGE #5: Obama Surrogate Governor Richardson Said Only Those Making Less Than $120,000 Would Get A Tax Cut.
GOVERNOR RICHARDSON: "What Obama wants to do is he is basically looking at $120,000 and under among those that are in the middle class and there is a tax cut for those." (Governor Richardson, Interview On KOA-AM, 10/31/08)

· Listen: http://www.youtube.com/watch?v=G88ebXY2uaI

Just how many people are going to get an Obama tax cut?

First it was anyone making under $250,000. Then it was $200,000. The last time they let Joe Biden talk without a script it dropped to $150,000. Today according to Bill Richardson, we're down to $120,000. So, if you're making $120,000 or more you are rich. According to Martha Stewart you just need to suck it up and you'll just "have to budget" to pay your tax burden. It's a long way from $120,000 to $120,000 million or whatever amount Martha takes home.

And, let's see, 95% of the population will get a check from the government, courtesy of the "rich".

Business owners across the country are studying Obama's plan and they're planning their employee cuts, benefit cuts and more.

Today my son told me that his bosses sat down and talked about how they manage the company profits. They have it fine tuned to ensure they make a certain profit to avoid falling into a tax bracket that eats into their profits. If they make too much in a given year, they give the excess money back to the workers in the form of a bonus. They said that Obama's plan would have them immediately in a tax bracket that would cost them more than they could pay, thus to stay in business, they will have to raise the cost of goods my son buys to do his job. Effectively, he'd be getting a pay cut. Don't ask me to explain the details, I'm just repeating the general gist of what my son told me.

Guess who the company owners are voting for? It's not Obama! Guess who my son is voting for? It's not Obama. Hopefully there are a lot of people looking at Obama's spread the wealth, tax the rich, socialistic style government and they're going to punch the McCain-Palin button.

Here's Richardson talking about Barack Obama's ever moving tax target:

Pension Problems

Across the country businesses are failing. In some cases the straw that broke, or is breaking, the proverbial camel's financial back is their defined benefit pension plan. Do a Google search and see how many references pop up regarding pension plans and company failures.

I've written about Fayette County's vote to enact a defined benefit plan for their 600 plus employees before and most are aware of the problems the county is dropping into our laps. At a time when everyone else in the country is scrambling to try and fix their nightmare plans, at a time when tax revenues are down and everyone is trying to figure out how to afford to buy groceries, our "leaders" are giving away our future.

Sure, it'll start out fine, but the guys who are mortgaging the future of our county will have moved on by the time the fiasco hits our pocketbooks. The employees who sat on the committee that studied the feasibility of implementing a defined benefit plan will be retired and living off our tax dollars.

Every time I mention a DB plan to a financial planner and even to those who sell the product, they are horrified that our county will soon have that type plan. When I show them the comments made by Interim (still?) County Manager Jack Krakeel and Commissioner Jack Smith, they laugh. Everyone says exactly the same things they've said and everyone of the plans ultimately causes a huge financial burden on those paying for the plan.

The County has a wonderful plan in place that takes good care of the employees, especially those who are wise with their planning.

Why am I ranting about this one again? Well, the County is getting ready to finalize which plan they'll put into place AND I just received the following communication:

Isakson, Chambliss Urge Delta Air Lines, Pilots’ Union to Reconsider Termination of Retired Pilots’ Pensions

U.S. Senators Johnny Isakson, R-Ga., and Saxby Chambliss, R-Ga., today sent
a letter to Delta Air Lines CEO Richard Anderson and Captain Lee Moak, Chairman
of the Delta Air Lines Master Executive Council, urging them to reconsider a
proposal to make a voluntary contribution to the Pension Benefit Guaranty
Corporation for the benefit of retired Delta pilots and to work toward finding a
solution that protects the earned benefits of employees and retirees alike.

The text of the letter is below:

Dear Mr.
Anderson and Captain Moak:

As you know, we worked tirelessly on behalf of the Delta employees, retirees, and their families to pass into law provisions allowing airlines to spread their pension plan funding over a more manageable schedule. We did this to protect the 91,000 Delta Air Lines pensioners and family members in Georgia from losing their pensions and to help protect American taxpayers from having to pay for those airline pensions.

We understand that over 5,500 retired Delta pilots have had their retirement plan terminated and turned over to the Pension Benefit Guaranty Corporation (PBGC). Our understanding is that a majority of retired Delta pilots receive only a small percentage of the monthly retirement benefit they earned while employees of Delta. We are also told that a number of retired pilots receive zero benefit from the PBGC, and many more get a monthly PBGC payment that equals half or less than half of their Social Security benefit check. Finally, we are told that Delta will be assuming the pension liabilities for over 30,000 Northwest employees and retirees.

A group representing thousands of retired pilots recently sent a proposal to you, Mr. Anderson, asking Delta to make a voluntary contribution to the PBGC that would partially correct this issue. They also raised the issue at the September 25, 2008 shareholders meeting. As proponents of legislation designed to save these pensions, we were disappointed to hear that the response from Delta at that meeting was that this was considered a closed issue.

We urge you both to reconsider your positions, and to work towards finding a solution that protects the earned benefits of all employees and retirees. We appreciate your attention to this matter, stand ready to assist you in any way possible, and look forward to your response.

Sincerely,
Johnny Isakson

United States Senator
Saxby Chambliss
United States Senator