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.
Doodle, How is it I agree with you? Very good analysis and research! Excellent!