Posted on 06/17/2015 3:29:54 AM PDT by z taxman
Donald Trump wants to run for president. He says he can beat Hillary. Sometimes Donald Trump has something good things to say, and sometimes he makes me shake my head in disbelief.
...
Here is one of Trump’s economic solutions. “He said Ford and other companies looking to move manufacturing to Mexico or overseas should face a 35 percent tax when they ship the goods back to the U.S. That would bring the plants back home, he argued. ‘That’s what’s going to happen, and there are hundreds, thousands of those deals,’ he said. ‘I will make this country so rich – if I run on the 16th [of June] – just you watch.’”
The first question I would ask Mr. Trump is why companies would spend so much money moving their factories overseas. The answer is simple: it’s cost effective. Why is it cost effective? Because the corporate income tax in the United States is so high when compared to other countries that the cost of goods would be lower and Americans would actually get a better deal. “At 35%, the United States has the highest nominal top corporate tax rate in any of the world’s developed economies.”
It seems to me, instead of threatening to tax corporations 35%, Mr. Trump should work to lower the corporate income tax. Not only would this lower the cost of manufacturing, it would lower the cost of goods for all Americans.
(Excerpt) Read more at godfatherpolitics.com ...
IF I recall collect duties is part of the US Constitution.
Your allegiances lie else where, you fraud. You don't love America. I don't believe that for 1 second.
I wonder if the pillow biter who wrote this screed knows how much the tariff Japan and China charges on every car we ship over there? The last I checked China charges 30% per vehicle but they may have changed. I could have gone down, or up, it is so hard to get this information. The masses don’t need to know, it is all done in secret.
I don’t need to. I am American manufacturing...
The fact that the U.S. taxes corporate income is not salient to the argument you started. Your assertion that I was wrong (ignorant)in my initial reply may hinge on that argument, but that doesn’t mean I need to entertain it.
I’m part of the outsourcing. The company that employs me, is currently headquartered outside the U.S. as a response to those tax issues.
That does not, in any way bear on the fact that actual U.S. jobs (productive jobs, that actually pay a living wage) are in direct competition with those “free-standing foreign subsidiaries” based on cheap labor alone.
You’re right. It won’t.
Factories move overseas to enjoy much lower labor costs. corporate income tax is still paid wherever the cars are made.
The problem is that when the “Big 3” had the lions share of the domestic market they built crappy cars. Toyota, Nissan, and Mazda changed all of that. Further, Hyundai lowered prices in the entry level and kept prices from escalating above the rate of inflation.
with a 35% tax on imported cars it will increase the domestic sales, but it will be at the expense of quality.
Ford already has a plant in Mexico.
Quod erat demonstrandum. The fact that you remain ignorant of how our corporate tax code encourages our corporations to establish subsidiaries overseas (Ford Europe, anyone?) means that you don't have to consider that our corporate tax code does. Beautiful in its simplicity.
At least the author of the article put his lie right there in the title.
What Trump actually said was the opposite of what this author claims.
Here is the full announcement, and Trumps own words about how he doesn’t want foreign counties build our stuff, and how he would put a stop to it.
His announcement: https://www.youtube.com/watch?v=q_q61B-DyPk
It’s 51 minutes, but a far better use of your time than reading something that’s entirely false.
No. If I establish a free-standing subsidiary outside the U.S., then all that is taxed is "effectively connected income." Which is why Ford employs an army of tax lawyers.
Trump would have to change all the regs, then jobs would come back. Only then.
So you’re pretty much illiterate then?
Here: I’ll explain it as if you were an idiot...
There is no logic or honor in arguing that corporations are forced (by magical unicorn farts, or something) to avoid paying the taxes that are due.
Nevermind.
Here: I’ll explain it as if you were a troll looking for an argument...
Sod off.
"It’s not the “corporate tax rate “ that drives corporations to move jobs our of the U.S. it’s the cost of labor."
INCORRECT.
It’s also government regulation. If it was merely the cost of labor, it would be solved with automation, without taking the risks of operating in alien legal systems.
Regulation also drives up the cost of labor, as does the payroll tax, but the alphabet soup of federal, state, and local regulatory agencies are driving business away. Having had to get my office past local and state regulations about 25 years ago, it’s discouraging.
then there’s NIMBY. Who wants a noisy, smelly factory near their home, but that’s the best place to build one, near where their workers could live. That factory in China that assembles smart phones has its own dormatory. Who in the US would put up with that?
Then there is the American worker. From the baby boomers on, we were told to get an education so that we don’t have to get a dirty job in a factory. I remember one of my fellow pupils in sixth grade, in 1961, asking our teacher, “If everyone’s smart, who’s going to do the dirty work?” Who, indeed?
That is not true, there are moribund towns in the R-T-W south that would love to have manufacturing in their "their backyard". Large caps love all these regulations because it keeps the riff raff out while the close and move off shore.
Labor is only one cost. Overall taxes and regulations are the biggest cost. (Not to mention energy and transportation costs)
A Minnesota company that assembles large screen TVs moved to Michigan a couple of years ago. They had been getting them nearly fully assembled from China before labeling, boxing and shipping them to retailers but transportation costs got too high.
They moved to Michigan where labor costs are effectively the same, but they have some parts suppliers in Ohio and Indiana which helped with transportation costs. The components are still primarily made in China but its cheaper to ship a pallet of circuit boards than it is to ship multiple shipping containers of fully built televisions.
I appreciate companies that try hard to employ Americans but labor costs are seldom the deciding factor. Maybe Trump should suggest raising energy prices so high that nobody can afford to move products more than a few miles.
What communities are those “moribund Towns” Has anyone asked if they want a factory as a neighbor? Or are you just guessing? Remember, one of the best ways for a politician to lie is to start it with “The American people want........”
More than one, I believe. They've had a big foundry for casting engine blocks and other large parts down there since the 1960s.
You need to sit down and collect your thoughts. The ultimate end game of gloBULLization is a post industrial, post informational agricultural America with a Brazilian std. of living. A two class system. Before you post again why not travel a bit and see the REAL world, the real world live the favelas of Brazil. Go to Togo, i've been there. Then tell me about unindustrialized nations.
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