Rats fleeing a sinking ship

Reading the news this morning, I came across an article in the Milwaukee Journal Sentinel that discussed how Johnson Controls is merging with Tyco and will be moving its corporate headquarters to Ireland, a move that will save the company and estimated $150 million/year in taxes. Who is Johnson Controls and what do they make you ask? Johnson Controls, among other things, is one of the three companies that makes batteries. Pop the hood of your car, and there is a very good chance you'll find a Johnson Controls manufactured car battery. They were "saved" by the GM bailout in 2008, and as the headline of the above linked article says, after receiving tax payer funds, they pull up anchor and leave.

The move itself does not surprise me. The corporate tax rate in this nation is one of the highest in the world at 35%. It makes sense to me, and if I ran a major corporation and had an opportunity to relocate my corporate headquarters to an environment that is more favorable to business, I would. Its a no brainer, and yet many people are running around like the sky is falling. Here's my first hint for you. Corporations DO NOT PAY TAXES!  Taxes are nothing more than a line item in a corporations budget. Its an expense. Expenses are reflected in how much a corporation's products and services cost. In other words, they are passed on to the consumer.

The comments both on Facebook and the article itself are an education in the difference in ideological differences. The left is lighting the the torches and are crying about how Johnson Controls has responsibilities to more than their shareholders and that they have a social responsibility as well by waxing poetic about how many people that $150 million in tax dollars would help the less fortunate.

The right, while disappointed in seeing another company leaving this great nation, they understand why. They see that the only way to get companies to want to stay here is by lowering our corporate tax rate. By doing so, companies will move here instead of leaving. They will expand their operations here, creating more jobs. Both of which expand the tax base and bring more money into the economy.

The right wants to make an environment more friendly to business rather than shame the companies and raise the tax rates.

One side supports freedom, the other side, a more limited form of freedom. I know which side I choose.