No, I don’t get ‘your point’.
You seem to have no point as you imagine that companies that are planning to leave the US would somehow be incentivized to ‘open offices’ in the US as long as there would be no import tax. That seems like nonsense to me, not at all what one would think of as a point.
The Ford Motor Company plans to build a $2.5 Billion plant in Mexico to take advantage of cheap labor to manufacture vehicles and parts to sell back to the USA.
Donald Trump has stated that they are free to move to Mexico as they wish but as President, he will work to slap them with a 35% import tax on everything they produce in Mexico and import to the US.
Ford will cancel their plans because the advantage of cheap labor is negated by a tax.
They will also be extremely satisfied to stay in the USA when President Trump pushes through tax reform, regulatory and labor reforms.
The only valid point to be made is that right now the USA is an inhospitable place to do business, that companies are leaving in droves and something must be done about it. That something is in the form of a low 15% corporate tax rate, reduction in stifling regulations and aiding states to adopt RTW laws.
In the meantime, companies that are planning on leaving will cancel plans because of a pending tax, and this will compel them to get behind Trump’s tax reform and other reforms with full commitment, resulting in Congress passing the reforms by large margins.
Any person with business experience knows this makes total sense. Any American who desires that Americans be put first will fully support these policies.
>>No, I don’t get ‘your point’.
It’s very simple:
Is a tax on moving employees an incentive or disincentive to create employment in the place that does so?
>>>In the meantime, companies that are planning on leaving will cancel plans because of a pending tax, and this will compel them to get behind Trump’s tax reform and other reforms with full commitment, resulting in Congress passing the reforms by large margins.
So.. correct me if I’m wrong:
He will only use it as a hammer to get them to support reduced regulation and taxes?
Do you really need a hammer for this, they’d be for it?
Is he not going do the new tax and regulation (on companies employee-moving) if they support it?
And if he’s going to do it anyway, you’ve just added new taxes and regulations and dis-incentives to doing business in America.
There’s no logic here in your scenario. Is it even in Trump’s plan - this strategy your propose? Is this his plan or what you’re proposing?