If you make a product in the US, you get taxed as a business for making that product (fair enough). But if you make the product in a different country and import it, there is either less or no taxes depending.
The incentive has been strong for companies to outsource our manufacturing jobs away because of this. I understand that there are other reasons also, but this is such an easily fixable one. I love Trump's announcement today via tweet to take care of this problem. He is promising a 35% tax on those companies that outsource and then expect to bring their product back in for free. Washington lobbyists have to be absolutely freaking out right now.
Trump has promised lower tax rates & regs at the same time which is also key. There is sugar to go along with the medicine. Brilliant.
But there are certain situations where gov intervention makes sense. But over time it just becomes a convoluted spaghetti plate of loopholes and confiscatory situations. There is a mountain of tariffs, regulations and tax codes on the books.
I really like the idea of repealing 2 regs/laws before implementing a new one.
Reduce corp tax to less than 15% sure. It does not make sense to tax corporations based in the US on profits from sales they make in other countries (and pay taxes in those countries on the sales they make in those countries) which is what we do now unless the company keeps the profits from foreign sales off shore.
I am guessing here, but I believe the profits Carrier makes in the US by selling equipment produced in Mexico in the US do es expose them to US corp taxes but the tax system now is so convoluted it is hard to tell.
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The idea that new tariffs will be more effective for the stated goals than all that we already have, is unrealistic. The impression I get is that people think this is a new idea, it's not.
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What's your point here?
our tax code and something that provides both an incentive for companies to set up entities (if only a po box) in other countries and an avenue for foreign companies to avoid paying US taxes.
As an example, let's say I'm Samsung. My offices here in the US can "buy" TV's from Samsung Japan. I can "buy" the product for a high price and sell it here at break even. That allows me to "send" my US profits back to Japan, where I'll pay less taxes. This is where we have issues with trade deals and the like.
And, don't kid yourself, one group very worried about trump are accounting firms. The harder the tax code can be crafted, the more business there is for them.
Also, consumers who have no money, because they do not produce goods and/or services, cannot buy cheap goods no matter how small the price.
Unless of course the government goes 20 trillino in debt, and has its central bank print money to buy domestic bonds to artificially prop things up. But no one can be that stupid....
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Look at the adverse consequences of the stupid Bush steel tariffs. Protected a few jobs in steel mfg at the expense of even more jobs lost in industries using that steel. Abject failure that was dropped quickly. Protecting domestic jobs is better done through lowering corporate taxes and idiotic regulations. The gov job is to create a climate to allow all businesses to expand in the USA, not to pick winners and losers by selective application of tariffs and subsidies.
They were offshored due to dirt cheap labor and Chinese government dumping.
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They temporarily protect jobs until they hurt the economy to the point where more jobs are lost.
Such as China, South Korea, and Brazil. And the US for that matter in the 19th century.
Gee...I wonder.
This is economics 101.
Growth in and/or access to a large population. Technology and education level. Land, and therefore natural resource, expansion. Lifting of government controls to allow the market economy to function.
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We use 1/3 the labor force to produce that double amount. Far more people lose manufacturing jobs to a robot than a foreigner.
Regardless, it's a good thing Congress is in charge of taxes.
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% growth rate is horrible, by even Obama standards.
I wasn't citing the double in output to discuss the growth rate but rather against the thought that output had decreased.
Without domestic arms production, our economy has laregely been hollowed out.
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2) is that still not production?
Before 1980 military spending made up about 3-5% of production. Today it is probably even higher than the article reveals.
Article
Are you happy with how much we manufacture at the current moment?
I generally believe in free trade and free markets.
Also, do we want to build great things or be service providers?
There was no context in that statement. Response: we make twice as much as we did 30 years ago.
And I don't care what we specialize in. I care about maximizing economic output.
I don't dispute the move to robotics, but we still have too many manufacturing jobs leaking away.
Really not sure what cooked stats Lance is trying to toss at this...but if meaningful manufacturing had "doubled" in the last 30 years, Trump would NOT be President-elect.
Link: U.S. Has Lost 5 Million Manufacturing Jobs Since 2000
I'm starting to suspect he just throws out this crap. Your source is of all places CNN - an organization certainly not motivated to help a conservative argument. Because the info works against their usual narrative, I know that it can be trusted.
Want to eliminate technology and reinstate buggy whip manufacturing?
Link: http://www.marketwatch.com/story/us-manufacturing-dead-output-has-doubled-in-three-decades-2016-03-28
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Link: Here's another.
A very liberal source.
Link: A very liberal source.
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