This is the wrong approach, IMHO.
We should ELIMINATE ALL CORPORATE TAXES. The corporate tax rate should be 0% across the board.
Eliminate taxes and watch companies clamor to move to the USA...
Carrot and the stick. Trump plans to make the environment better in the us more business friendly by lowering taxes and reduce regulations. If that’s not enough for them to stay then the stick comes in play.
Mexicans get paid 3 dollars an hour. How is this a free market? I would say that there needs to be a counter balance against countries essentially using slave labour to compete against companies in free and just nations
He plans to reduce corporate taxes from 35 to 15%. One step at a time.
I’d also like to see some incentives for companies to re-shore jobs previously sent out of the country. I’m not a big fan of incentives in general when they pit one state against another, but in this case an incentive that puts the US at an advantage would make sense because it could offset the social costs that result from job losses. We are paying that penalty now, let’s instead work with companies ho could benefit from reshoring.
Boston Consulting Group has been writing about reshoring for several years now and their research shows which industries and states are most likely to benefit. Aside from wage-related costs, some factors include the supply chain and transportation costs (which have increases massively) and the agility in the market that companies often lose.
I’ve said over the years that corporations should pay NO taxes. Corporations are not people. The should be encouraged to stay in the country. The income to many people generated by corporations should be taxed, but not the corporations themselves. They are much needed and valued members of the free world stage.
It’s important to have an increase in consumer spending, investment and net exports as they are all components of GDP. Trump’s plan is balanced to get all 3 (income tax cut, corp tax cut, trade reform)
Of course, no company is leaving to avoid corporate taxes.... They’re leaving to pay by third-world wages to third-world workers.
Corporate taxes are a scam anyhow. Corporations don’t PAY taxes. The money they send to the gubmint is always recouped in the prices of their products. We, the people pay for EVERYTHING!