The 35% corporate income tax in the US is insane!
This tax is passed wholly to the end consumer as higher prices.
The higher prices means that a foreign made product is a better buy so the US based manufacturer goes bankrupt.
The corporate income tax should be 0.0%
Capital gains tax should be 0.0%
It’s as if our tax code was created to drive business from the US.
It is too high but we have no VAT so the overall tax rate is lower than in most developed countries.
United Technologies paid a tax rate closer to 12% last year on profits of over $17 billion.
The higher prices means that a foreign made product is a better buy so the US based manufacturer goes bankrupt.
If the air conditioners are built in Mexico and sold here then UTC is still going to be taxed on that income. Taxes have nothing to do with it. Increasing profits does.
The corporate income tax should be 0.0%
Capital gains tax should be 0.0%
Then that means that the additional profits UTC recognizes from building the air conditioners in Mexico will be taxed at zero percent instead of 12% or 15% or whatever. That will free up extra money for stock buybacks, dividends, and executive bonuses. I'm sure UTC would support you on that.