How would it play out here

I was watching the live video feed from Al Jezeera English on the web a while ago, watching the events in Libya unfold as the rebels took Tripoli.  I thought about Egypt, I thought about the other places where events like this have occurred, even going back to the collapse of the Soviet Union.

So a couple of thoughts crossed my mind.  Like how bad would if have to get, before something like that happened here?  And if it did, would enough of our military decide to side with the people to actually put some muscle behind a popular uprising?

It is important to note that in each of the Arab countries with a successful uprising, the government unintentionally turned what were essentially demonstrations of discontent into a revolution by the virulence of their response.  If Gaddafi had, for example, recognized that the demonstrators had legitimate grievances, even if very little changed, he probably would still be in power.

The appearance of sympathy and some token concessions would likely have blunted the anger of the populace.  Instead he proved to them that they were right by his violent response.  It is possible to make the population cower in submission, but it has become harder to do in the age of the internet and social networking.

Demonstrations of any size against the status quo in this country are usually downplayed, while tiny demonstrations in favor or right wing causes are treated as major events.  You need look no further than Minnesota where massive demonstrations in support of organized labor and a dozen tea party members with signs across the street were given equal weight by the mainstream media.   

So the tactic in this country would be very different, it would be to marginalize the demonstrators, try and convince each group that they represented a tiny segment of the population.  I attended a large demonstration in San Francisco before the invasion of Iraq, and one person had a since that was prophetic.  It read "Remember what you see here, because they will lie about it on the news".  And it was very true. Despite massive demonstrations all across the country, the anti-war sentiment was marginalized in the media.

So what would it take?  How many people out of work, how many families tossed onto the streets before there would be enough opposition that the oligarchy feels threatened? 

You only need look to the early union movements to see what has happened in the past.  As recently as 1920, there was the Anaconda Road Massacre where company guards fired on unarmed miners, shooting 17 in the back.  Or look at the Colorado Labor wars of 1902-1903, where the military was used to violently suppress striking miners.  Look to Herbert Hoover's reaction to the Bonus March of World War I Veterans, which eventually led to his downfall and the election of FDR.

In many homes around the country, there is an air of quiet desperation.  How long does this continue, when does the pot boil over?  And on who's side would the military end up?

When they talk about high US Taxes

The right is always talking about high US corporate tax rates.  You could compare us to places that have legalized slavery and always make us look uncompetitive.  Instead lets compare us to a successful industrialized country, one that is essentially eating our lunch in the marketplace.  Let's look at Germany.

First let's start with the VAT (Value Added Tax).  That is essentially a sales tax, that is tacked on to each transactions at each level.  The rate is generally 19% but for certain foods, books, magazines, flowers, some transportation, it is 7%.  And some things are exempt.  Doctors do not charge VAT tax, nor do public theaters, museums.  This is not a complete list of things that have a reduced or waived VAT tax, but you get the idea.

The tax is charged by the seller. The manufacturer pays it on the raw materials they buy.  The distributor pays it on the finished goods they buy, the consumer pays it.

Let's take the case of the manufacturer.  On a quarterly basis they will pay the tax that they charged to their distributors, minus the tax they paid buying raw materials.

Then there is the corporate tax rate.  According to taxrates.cc the combined (federal and local) tax rate for corporations is 33.3%.  This is actually a rough summary of three different taxes applied to corporate income.  And unlike US corporations, German corporations are taxed on their world wide income, minus of course any taxes paid on income in other countries.  So they cannot hide their income in low tax countries.

Now let's talk about the other two facets of this.  How are German companies doing under this burden, and what do the German people get for their money?

Well, you know that in manufacturing and exports, they are beating us in the marketplace and have been for years.  So paying employees a decent wage, a mandatory 25 vacation days, and taxes on their world wide income does not seem to have stoped them from doing well.  And look at CEO salaries, well in 2009 Deutches Bank CEO Josef Ackermann had a total compensation 9.55 million euros.  He was the higest paid CEO in Germany that year.  It does not compare to some of the packages US CEOs were getting in that same year, but he is still getting rich.

And what do the people of Germany get for these taxes?  How about universal health care, pensions, and tax-funded child, housing, and educational allowances?

So our taxe rates are not, and never have been what is killing our manufacturing, destroying our middle class.  Rather it is the blind faith that if you only appease the oligarchy that owns this country enough, that they will eventually share a few crums with the rest of us. 

You want to see jobs moving back to this country?  Stop giving businesses a free ride to hide their profits overseas forever. When you give them economic incentives to send your job overseas, what do you expect?