<p><a href=“http://www.nytimes.com/2005/06/26/opinion/26kristof.html?th&emc=th[/url]”>http://www.nytimes.com/2005/06/26/opinion/26kristof.html?th&emc=th</a></p>
<p>Assuming that a financial crises will be coming in the next X yearsl, what’s the best strategy for that? What would it mean to the average person (besides things like social security being cut drastically)? Would there be a stock market crash? Would it be a good time to have cash holdings, or would money market funds also be subject to problems?</p>
<p>How can anyone (and I blame BOTH Republicans and Democrats) not see the problem that such a debt is going to cause?</p>
<p>Since the wealthy pay most of the taxes, they endure much more of this burden than the average citizen.</p>
<p>barrons -</p>
<p>Wow, your note caused me to do a little research (2001 figures):</p>
<p>The top 1% of tax filers pays almost one-third of all tax monies collected.</p>
<p>The top 5% of tax filers pays more than half of all tax monies collected.</p>
<p>The top 10% of tax filers pays a little less than two-thirds of all tax monies collected.</p>
<p>The top 25% of tax filers pays more than 82% of all tax monies collected.</p>
<p>Corporations and businesses also pay a good chunk of all taxes. Maybe not as much as they should, but a big number all together including about half of all SS taxes.</p>
<p>The scary thing is now, who owns our debt? Who have we allowed to by our debt up in the last few years? So if those countries decide to call in the debt, what recourse do we have?</p>
<p>Did we have such a deficit 6 years ago? And why do we owe so much money to say, China?</p>
<p>For decades, the U.S. tax code has encouraged companies like Halliburton to transfer the location of its subsidiaries from the United States to foreign countries. This is one reason why only thirty-six of Halliburton’s 143 subsidiaries are incorporated in the United States and 107 subsidiaries (or 75 percent) are incorporated in 30 different countries.</p>
<p>Foreign subsidiaries of American corporations must pay U.S. taxes on income generated in foreign countries in the year it was earned. But if an American company incorporates a subsidiary under the laws of a foreign nation, the subsidiary is no longer considered a “U.S. resident” under the tax code. Instead, it is considered a “foreign citizen.” This allows the parent corporation in America to avoid paying U.S. taxes on the foreign subsidiary’s income as long as the income is retained and reinvested outside the United States. </p>
<p>income as long as the income is retained and reinvested outside the United States. Although the foreign income is taxable if sent (repatriated) to the United States, the U.S. parent corporation may repatriate such income at anytime it wishes, meaning it can avoid U.S. income tax indefinitely. Data show that corporations nearly never bring home any of the foreign profits during the first fifteen years after incorporating a subsidiary inside a foreign country.</p>
<p>Why just pick on Halliburton?? Many US companies do the same–legal–thing.</p>
<p>In most cases the foreign incorporation is local to where the company does business and earns its income. In that Haliburton is just like Heinz. </p>
<p>Schlumberger is a French oil field company that competes with Haliburton that has a US subsidary. Consider them for a moment. Would you consider income they earned in France US income? Since they pay taxes on that income in France, why would you expect them to they have to pay taxes twice? They both had US and French business units. Why should Haliburton be treated differently?</p>
<p>This isn’t a Republican or Democratic issue. This is an American issue. Every baby is born with a debt of $150,000. I believe these numbers do not include the future obligations coming from social security or medicare. Nice way to start a life, isn’t it?</p>
<p>Clearly, it seems the answer is to buy American. What is not so clear is exactly how. Many products(cars come to mind) that have parts made here but assembled elsewhere, or the reverse. Honda is a foreign car, but many are assembled in Ohio, employing many at a good wage. Plus, in the 80’s Japanese cars earned a reputation of being better built than american competitors. To this day, they still get benefits of that reputation, though recent surveys usually now rate American vehicles equal. Wal-mart offers low prices, a few good paying warehouse jobs, and many entry level jobs, but has an ever increasing dependance on foreign made goods. No American manufacturer makes a tv with a larger than 19" screen. Makes the solution clear as mud.</p>
<p>I saw a pickup truck the other day with a big American flag attached to the bed. Ironic part is that his was a Nissan truck! Clearly, his purchase of that Nissan helped put Americans out of work. What is not so clear is the cure.</p>
<p>For me, the answer is to buy as locally as I can. I shop in my small town first, if I can’t get satisfaction then I go to nearby big city. I prefer to buy cars from the “big 3” because they are most nearly American. I make a conscious effort to buy American, or at least as close to it that is available. Saw a bumper sticker the other day, “Don’t complain about foreign outsourcing if you drive a foreign car”. Worth considering…</p>
<p>
The meaningful number to look at is the total debt, not the deficit. Here is what it was in Sept. 1999:</p>
<p>$5,656,270,901,615.43</p>
<p><a href=“http://www.publicdebt.treas.gov/opd/opdpenny.htm[/url]”>http://www.publicdebt.treas.gov/opd/opdpenny.htm</a></p>
<p>Big 2</p>
<p>Benz owns Chrysler</p>
<p>younghoss - do some research. ALL Nissan trucks are manufactured in Symrna, Tennessee. Some Ford trucks (F-650, F-750) are built at Ford’s plant in Cuautitlan, Mexico, on the north side of Mexico City.</p>
<p>Things are much more complicated than whether a vehicle has a Big 3 label on it or not.</p>
<p>You won’t get any of the spending under control until we stop the silliness of progressive taxation, which clearly leads to people making logical decisions to vote for programs that they benefit from, and don’t pay for. </p>
<p>The foreign car problem is a big one. I no longer own an american car. My first new car was a Pontiac. We had always been a GM family. In two years of ownership, 43000 miles, it experienced</p>
<p>1 Odometer non functioning on delievery. (Replaced by dealer, who dented middle of hood in process. Fixed and repainted reluctantly.)
2. Plastic sides of bucket seats broke off
3. Side marker light trim rusted instantly (on everyone else’s that I saw too)
4 Voltage regulator failed (on a 1000 mile CHristmas vacation trip)
5. Heater core sprung leak. Ruined carpets.
6. Hubcap center caps fell off. </p>
<p>Remarkably, I thought it was a good car until I owned a toyota in 1980 and saw what was possible. </p>
<p>Second try was an 85 Buick Park Avenue. </p>
<p>In one year, before I jettisoned it with only 10000 miles on it. </p>
<ol>
<li>Electrical probelm caused speedometer to intermittently drop to zero, even when travellling at 60 mph. </li>
<li>Windshield wipers failed. Dealer replaced, and charged me for repairs which were listed under warranty. Corrected when I went back in with the warrantly book from the golve compartment. </li>
<li>Transmissions had some major flaw that caused it to lose power and shudder when there was standing water around. </li>
</ol>
<p>My aging parents own a Pontiac that had constant trouble----remarkably, they don’t see it as abnormal. </p>
<p>My toyotas that I have owned have never had a delivery problem or a manufacturing defect. </p>
<p>The issue here is simply philosphy on whether it is worth the cost of removing the last defects from the car. US mfgs think that’s what theh dealer is for. I prefer to pay more and not ever have to see those jokers again. It appears that the part of the market that I represent has grown more than that represented by my parents. That’ s Detroits problem.</p>
<p>Good articles on “What is an American Car?”</p>
<p><a href=“http://money.cnn.com/2003/06/26/pf/autos/americancars_whatis/[/url]”>http://money.cnn.com/2003/06/26/pf/autos/americancars_whatis/</a></p>
<p><a href=“http://www.popularmechanics.com/automotive/opinion/1272791.html[/url]”>http://www.popularmechanics.com/automotive/opinion/1272791.html</a></p>
<p>excerpt:</p>
<p>* </p>
<p>Who’s the better American, the person behind the wheel of a Nissan Altima or the driver of a Chevrolet Camaro? And, which car is made in the good ol’ U.S. of A., the nifty Chrysler PT Cruiser or the BMW Z3?</p>
<p>The answer to the second question is easy: Every BMW Z3 sold in the world comes out of a factory in Spartanburg, S.C. That Cruiser, on the other hand, is made south of the border in Mexico.</p>
<p>The answer to the first question is a bit tougher. While the Altima is made in Tennessee, the Camaro comes from our neighbor to the north. The Camaro is built in Ste. Therese, Quebec. But the Altima is a Nissan, which is controlled by Renault. Regardless of where the Camaro may come from, it’s still an American Chevy product. So, is one less of an American car than the other? What is an American car? More to the point, what is an American car company?*</p>
<p>Dadx, I hear you. While the American reliability has improved since you last had an American car, I think the Japanese companies are still better. I have gone back to American cars for my last two vehicles and, while generally reliable, I seem to make more trips back to the dealer than my friends with Toyotas or Hondas. The kicker is customer service. I am currently experiencing a problem with my car’s AC system which results in lack of cooling. Unfortunately, it only occurs while the car is moving (and intermittantly at that) and hence can never be replicated on the shop floor. I have been to 3 dealers and none will even attempt to resolve the problem until they can observe it and have appropriate test gauges tell them where the problem is. Of course, due to the nature of the problem, this will never be possible. So I called Ford HQ. Their official response, and I quote, “Unless a dealer can replicate your problem on the shop floor, from Ford’s perspective you do not have a problem.” Guess who’s next car will be from a Japanese company?</p>
<p>ffather</p>
<p>Well, in fairness, the foreign dealers are not a great deal better. I have an older infiniti which has had some issues recently, and the dealer told me I needed a new a/c condenser, which he quoted at over $800. Because I frequent the bulletin boards of the toyota and nissan owners clubs, I was able to ascertain that his diagnosis was completely wrong, and the local Valvoline jiffy service place simply recharged the refrigerant for $100. THe doggone local dealers parts were also quoted to me at level that was 120% of list. I can get them from Scottsdale Nissan for 25% off. </p>
<p>And I owned a Saab after my Buick that had a couple of issues on delivery, although after they were finally fixed (it wasn’t easy) I liked it just fine. Like I said, I think this is a simply issue of what philosophy works best economically in the marketplace. I’m willing to pay some premium if I have confidence that I am getting some reliability. Others aren’t, and are content to have the dealer take care of it under warranty. </p>
<p>In truth, it gives me great pain to make these observations. My father was a steelworker, and my best friend from HS recently bashed me for not buying american. But I’d rather take the bashing than go to the dealer. </p>
<p>In any case, the issue of the deficit, imports, exports, and a lot more on top of that isn’t easy to solve. It makes you wonder why anyone wants those jobs where you are responsible for it.</p>
<p>Dadx, which programs would you like to cut?
Maybe, we can end the progressive nature of taxation by increasing the capital gains tax rates, the dividend tax rates, and the $250,000 exclusion from capital gains when you sell a home.</p>
<p>to digmedia referring to post #14, I’m not sure your point…? My very first example was vehicles are hard to pinpoint origin because of multiple combinations of parent companies/assembly, etc. Maybe I misinterpreted your post, but as you started with “younghoss - do some research”, I got the impression you disagreed with me, yet your wording agreed with mine about the complexity of an American product. That is also why I said “because they are most nearly American. I make a conscious effort to buy American, or at least as close to it that is available.” key phrases there being “most nearly” and “as close to it that is available”</p>