Signs of the Coming TaxApocalypse
by Mr Juggles
When otherwise smart people start agreeing with the current administration that abrogating the rule of law and long-standing investor protections is a worth-while activity, we are in trouble and the type of trouble starts in “Z” and ends in “BABWE”. Specifically, we have reached the point where it is more attractive to invest in Canada or France. Wow. Never thought I would say that, but I will now say it again — it is more attractive to invest in Canada or France.
Vistaprint (NASD: VPRT) is the “new economy.” They got their start as a company printing business cards and flyers for small and medium-sized businesses. Now they also offer many other products that SMEs like and just launched a email marketing service to let SMEs reach their customers cost-effectively. This is a company that, like Amazon (NASD: AMZN), grows rapidly through innovation and automation. This is a modern business. And because Vistaprint is an online business, it could be run from just about anywhere. In fact, it will be soon due to a move that should serve as a wake-up call to America: Vistaprint is moving its domicile to the Netherlands and its headquarters and CEO are moving to France (?!?!). Why? They think it’s a better place to do business. France!
Here are the reasons Vistaprint thinks Paris is a better place to do business (taken directly from their quarterly report):
- Time zone centrality and flight connections
- Significant and growing Vistaprint operations in Europe
- Corporate history: founded in Paris; first manufacturing in the Netherlends
- Highly stable economic, political, and regulatory environment
- Commercial relationships and tax treaties with countries around the world
Recommendation: When US politicians start protecting the unions in dying industries, punishing investors who provide capital, and making life difficult for innovative young businesses to the extent that they start favoring France for its stable economic, political, and regulatory environment…then the US is officially on the road to the TaxApocalypse. Buy non-US assets and currencies in countries with stable economies and political systems.*
*if you find one of these, please alert us immediately, TIA.
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- Efficiency in Wasting Money
- Taxissassin?
- Disruptive Businesses: Taxistutes
Heh. VistaPrint isn’t moving because of taxes. They’re moving because they’re spammers. The Netherlands is a good data haven. If the future of the U.S. economy is ads for free business cards, acai berry weight loss aids, and zoo porn, taxes are the least of our problems.
Just a year ago I thought Ayn Rand was a screedy example of a particular kind of kneejerk libertarian, now I’m starting to think of her as a prophet. And Ernunno, since when does losing one of our top internet porn spammers count as a win?
Oh, nevermind.
The latest meme making the rounds is that Marx was a brilliant prophet because he ‘discovered’ that capitalism was subject to boom and bust cycles – a discovery that no doubt would have shocked Dutch tulip speculators, and British investors bent over by the South Sea Bubble, the crashes of the Napoleonic Wars and the panic of 1825. The old saying needs to be shortened – those who do not know history, are doomed.
Netflix is the ultimate spam company. Maybe we should look for them to move to the Netherlands next?
BTW, I cited taxes and regulations. Both of these are definitely very large factors in VPRT’s move.
Wouldn’t “Taxageddon” be a better name?
Heard essentially the same story on Laura Ingraham this morning (sans VistaSpam). Our Beloved Leader demonizing those nasty hedge fund managers, for attempting to live up to their fiduciary responsibility to investors.
Bad, bad hedge fund managers. Trying to reduce the loss of principal. How can we possibly succeed if we don’t sacrifice other people’s money and get sued?
TYC-Tyco already moved to Switzerland. If I remember right the SP500 lost 3 companies because of them leaving the US and going to business friendly regimes.
This trend will only continue if this crazed populist/socialist regime gets its way. Short term cash (1-year)for long term destruction is awesome. Instead of outsourcing SOME jobs overseas businesses can now outsource their headquarters as well.
Be sure to take advantage of synergies and invest in French Canadians.
Trying to reduce the loss of principal. How can we possibly succeed if we don’t sacrifice other people’s money and get sued?
C’mon. The game’s not won until the New Savonarola has piled up all the money in the piazza and made a bonfire out of it. Then utopia will be realized.
Either that or we’ll all be sitting around cold and wet and eating our shoes for dinner.
I’d long Johnston and Murphy and Manolo, short Kiwi.
Please don’t use Vistaprint or recommend it to your readers.
Using Vistaprint could very likely lead to you being signed up to FAKE discount clubs and hundreds of dollars benig taken from you Visa/bank without your knowledge or permission.
I have a huge blog post with all the details of all of the different scamming sites Vistaprint and Adaptive Affinity run and how best to get a refund.
http://www.hubbers.com/index.php/i-got-scammed-by-vistaprint-and-adaptive-marketing-and-adaptive-affinity-ltd-and-amazon/
If you don’t believe me check this blog and the scores of comments form people who have been ripped off!
http://www.thegeneva.com/vistaprint-scamvprewards-scam-warning/
According to the Washington Post http://www.washingtonpost.com/wp-dyn/content/article/2006/05/06/AR2006050600160_pf.html this negative option selling scam earned the parent company Ventura $650 million in revenue in 2006.
If you have already used Vistaprint, start checking your bank statements.