What I said about taxes related to unoutsourcing is they were granted by Death Raygun and Bush with the promise of freeing up monies for investment in jobs and factories, we thought in america, which tax cuts did accomplish, except it was done in India, China, Mexico and the other part of the 3rd world, stranding our working class.
Every american city in the nation has it's rust belt zones comprised of closed factories that once were prosporous and we led the world in productivity, ingenuity, technology, and development.
mr/ms henning caught the essence of my ideas and statements about out sourcing saying it much better than I did.
Thank you for putting some light on the issue.
"The Cost of American Workers has always been higher than that of workers or Slaves in other countries.. Why is it suddenly so burdensome to American Corporations. Corpotate America pays far less taxes on money earned in foreign lands so of course thats a plus for them"
Any profit earned by a corporation in US is subject to 35% of corporate tax. However, a corporation having an off shoring unit outside the US need not pay tax on the profit earned on that unit.
This differential tax treatment has been there in the US tax code for more than half a century. What happens if this tax differential is taken away? How much of an impact would that have on the bottom line of the multinational corporations? The bottom line of multinationals will take a hit, irrespective of whether they retain their off shoring units or close it.
If they decide to close the off shoring units, the alternative would be to shift the operation to US. And whatever profits they generate in US will anyhow be taxed at 35%. And if they retain the off shoring units, they still have to shell out 35% of their profits as tax. Thus, one thing is clear: no matter what they do, the multinational corporates would have to take a hit of 35% of their profits on their bottom line.
Does that mean end of outsourcing?
Outsourcing from the perspective of the big multinational may suffer some hit but outsourcing per Se will not be affected. There are many small businesses which outsource their work. For them, there will be no impact whatsoever, because they derive profit from US on which in any case they have to pay tax. They do not have any income/profit attributable to a unit situated outside the country. In fact, during these recessionary times, it would make absolute business sense to outsource work, increase the profitability, pay tax & help improve the liquidity scenario in the economy.
Can you and Ira explain to me your rational for your statements concerning the tax cuts prompting outsourcing?
Perhaps Ira can explain his rationale re Tax Cuts prompting outsourcing, I can`t. I was only agreeing with part of his post.Whats prompting outsourcing of American Jobs is the cost of doing business in America is to expensive. However Riddle me this Robin, The Cost of American Workers has always been higher than that of workers or Slaves in other countries.. Why is it suddenly so burdensome to American Corporations. Corpotate America pays far less taxes on money earned in foreign lands so of course thats a plus for them. These Pluses have always been there, the only difference now is Profit has taken 100% precident over people. If were going to continue to allow the Traitorous Un American Corporations to sell America down the river then at least take away the tax breaks we give them so we`re not financing our own demise.
"Outsourcing couldn’t possibly have been a result of company’s trying to stay price competitive with foreign made goods in part because unions were driving the cost of manufacturing to the point where the products were no longer able to compete with the foreign market."
And you know what they had to cut to do it? R & D, that's why the American car is far inferior to the foreign cars.
Ira, I think you’re delusional. You offer no evidence that the tax cuts sent jobs overseas. Just another one of your idle suppositions. Outsourcing couldn’t possibly have been a result of company’s trying to stay price competitive with foreign made goods in part because unions were driving the cost of manufacturing to the point where the products were no longer able to compete with the foreign market. No, that couldn’t possibly be it. It’s got to be those bad, bad republican guys and corporate america trying to keep their doors open. Can you even see the end of your nose? You are so short sighted, biased and self righteous you make “The One” seem like a middle of the roader.
The yeoman asked"Can you and Ira explain to me your rational for your statements concerning the tax cuts prompting outsourcing?"
Sure thing pal, The Raygun and Bush tax cuts were described by Bush41 as voodoo economics in 1980.
They weren't voodoo, they were worse.
Those tax cuts were 'justified' to encourage investment in plants and jobs.
They resulted in the outsourcing of our manufacturing base with our tax cut dollars investing in plants and jobs in Asia and Latin America primarily.
This country used to make stuff for internal consumption and for export.
We were #1 in the world in education, health, worker safety, quality of life standards and as a lender.
As a result of the proven and admitted by one of it's strongest proponents, Alan Greenspan, to be flawed the "Trickle Down Economics" theorey has turned your Divided States of America and my United States of America into a 3rd world debtor nation.
Raygun declared war on the middle class and won.
He succeeded in killing off the union movement which built the midddle class after WWII in spite of "benevolent mgmt".
Do you get it now???
Big business is hiring, in Asia, Latin America and Europe though probably not in great numbers in Europe.
Jobs in Asia and Latin America is what Ronnie Raygun's and 43's tax cuts got us.
Your right, Big Business is hiring in China, India, the Plips and other Countries. The jobs are being filled with ones outsourced from America. Those other countries would be rubbing two sticks togeather to start a fire if it weren`t for America, they with the help of our Politicians be the Countries that Do Us In.