Written by C. Cranium

Monday, 31 January 2011

image for State of Union becomes 51st State
Be in the State of Union from anywhere

Shortly after president Obama's State of the Union speech a group of influential senators and congressmen from both parties met to discuss legislation that would leapfrog the competitors in the global race for economic dominance.

After a few courage builders and pizza the ideas sprang from nowhere and innovation blossomed in an area ripe with oratorical fertilizer. Steven Jay Gould, the famous paleontologist from NYU, has called the conclusions of the meeting the 'punctuated equilibrium' of politics (nobody knows what that means, but it sounded good).

The meeting lasted all night and through the week end and has now exploded into legislation to create a new state that has no geography but a large virtual presence. The new cyber state is named Union and any citizen of the United States can nominate Union as his or her place of residence.

The State of Union gives citizens cyber privileges for growing businesses without the land-based encumbrances of State and Federal governments. State and Federal regulations remain in tact but Union citizens are free to leverage the digital world at will. Business activity will gravitate to the least expensive state to do business, as tax incentives will be specifically prohibited. No longer will a business be swayed by good old boy tax breaks to locate a factory in south nowhere. All states are on an even playing field to the extent that they are now.

Pundits are now predicting that changes will follow suit for state economies, as Union will attract millions of citizens and nerds. A Union citizen could physically live in Wyoming and manage a business in cyber space that has no physical presence in Wyoming and a retail outlet in California. Commerce is only taxed once and there is no GST to goober up the accounting. Wyoming receives the taxes and fees paid based on the residence status, Union gets a cut for generating the business, and California receives the balance for physical location of commerce. How it is all split remains vague, but it a law now and regulators are busy convoluting the plan.

The genius of the State Union is that corporations will likely migrate to where there business isn't to take advantage of the virtual tax and fee advantage. As business determines where the advantages are, lawyers will be spending the winter in Cheyenne along with their executive buddies, and golf courses in Cheyenne will be packed when the ground thaws in late May.

The story above is a satire or parody. It is entirely fictitious.

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