"Well, how...how...how exactly are you gonna do it? Huh? Huh?! What...I say, what magic wand do you have? You got nothin'!"
Posted on 12/03/2016 9:13:43 AM PST by rhett october
This past Friday, Donald Trump focused on a second U.S. manufacturing plant that plans to move jobs from Indiana to Mexico due to the NAFTA trade imbalance and the highest-in-the-world corporate taxes of the United States at 35%. Paying the highest business taxes in the world makes it exceptionally difficult to do business in the United States compared to many other parts of the world such as Ireland where the corporate/business tax rate is 11%. Business has thrived in Ireland since the corporate tax rate was lowered to that percentage, resulting in large numbers of new jobs as businesses grew, had more profit, and relocated to Ireland.
President-elect Trump, citing Ireland as an example, has said that he will attack the issue from both ends in that he will lower taxes for U.S. businesses to a more manageable, competitive rate of 15% and if businesses move production of their products to other countries and then attempt to sell them back into the United States, Trump’s plan calls for a tariff (tax) to be added to those products which would mean that the manufacturer would have to to increase their prices in order to pay for the tariff. Such a price increase would make them less attractive to potential buyers. Trump’s proposal is the polar opposite of what it happening now in that due to the business tax rate being the highest in the world at 35%, businesses are having to have higher prices than the rest of the world in order to pay the tax. This has made them less competitive internationally and has sent many businesses to other countries with less predatory tax rates.
Mr. Trump wrote at 10:06 p.m. on Twitter: "Rexnord of Indiana is moving to Mexico and rather viciously firing all of its 300 workers. This is happening all over our country. No more!"
On Thursday at the Carrier plant, also of Indiana, president-elect Trump and vice president-elect Mike Pence, announced a deal with the company to keep roughly 1,000 jobs in the state.
According to a spokesperson for president-elect Trump, in exchange for keeping the factory running in Indianapolis, Mr. Trump and Mr. Pence are expected to reiterate their campaign pledges to be friendlier to businesses by easing regulations and lowering the corporate tax code to be something more competitive to the rest of the world along with being more realistic to the challenges businesses face.
Rexnord, whose products include ball bearings, industrial chains, and gears, is based in Milwaukee and intends to relocate production of industrial bearings from Indianapolis to Monterrey, Mexico, according to the employee union. The move, expected by the middle of 2017, would eliminate about 300 jobs. Shares of Rexnord have fallen more than 10% from Wednesday’s close, presumably due to the relocation news.
The Wall Street Journal notes that the steelworkers union said Rexnord rejected the union’s proposals for wage freezes and other concessions to lower costs. The union said that wages at the plant, which currently range from $18.82 to $30.81 would have to drop below the minimum wage of the United States in order to match the cost savings to the company of moving to Mexico. This is based on the current corporate tax rate of the United States and the NAFTA disadvantage to American manufactures. Enter Trump who has, even before taking office, convinced Carrier to stay based on his new, economy-friendly tax and trade plans. The eyes of the nation will watch to see if President-elect Trump can convince Rexnord to stay as well. Twitter embed at source.
That is a benefit that wasn't so obvious during his election...at least as reported by the lamestream media.
agreed and some are criticizing the crony capitalism, but the boat is sinking. plug the leaks first where you can. get to the marina, haul out and reglass the bottom. he’s just plugging the leaks. the tax and regulation cuts will come when he takes office.
I’ve never seen a President work this hard on saving American jobs.
Not even Reagan.( 80% of Americans were working back then )
Since Reagan American jobs have left the country.
Trump makes Obama look like a total zero ...
Oh, wait....Obama IS a total zero.
How about our Oreos? Get them back so we can resume buying and eating Oreo cookies. Maybe trade Mexico Target stores for the Oreo factory?
The union said that wages at the plant, which currently range from $18.82 to $30.81 would have to drop below the minimum wage of the United States in order to match the cost savings to the company of moving to Mexico. This is based on the current corporate tax rate of the United States and the NAFTA disadvantage to American manufactures.”.....
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Please tell me again who on “our side” negotiated such stupidity???
Announce one every week. Let’s Roll!
The collapse of the US auto industry had a lot to do with that. As Americans became disgusted with the poor quality of American cars and started buying foreign cars in increasing numbers, there went the jobs.
That's deplorable.
Trump emasculated President Zero faster than Tupac’s gunshot wound turned him into Onepac.
LOL.......one left....too bad.
The auto decline has a very long history, and management, unions, and government all share part of the blame. And some must be directed at the “Golden Accident” that left American manufacturing without ANY competition for almost 20 years. After WW II, neither Germany nor Japan could effectively compete with us until after about 1960.
This in turn led management in Detroit to believe they could grant any concession to unions, no matter how uncompetitive; caused management (as David Halberstam says in “The Reckoning”) to think they could never be wrong, and to cease innovating; led unions to ask for (and receive) the moon; then gubment increased taxes, imposed regulations, fiddled with environmental controls; created the Consumer Product Safety Commission, and so on.
The union said....’nuff said, for me. Unions are liars, out to featherbed their positions and destroy businesses.
I have often wondered what would have happened if FDR had not forced Ford to unionize.
Eight years ago boy king-elect Obama was busy spraining his hand patting himself on the back.
Can anyone definitively address stories I’ve heard that specific concessions were granted to Carrier to keep them in Indiana? Or was it just general promises to move on nationwide corporate tax cuts and deregulation?
Has Old Media reported these as all white companies yet?
Pray America woke
Not even a fair fight.
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