U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Reply Start New Thread
 
Old 05-04-2018, 02:21 PM
 
Location: Paranoid State
12,672 posts, read 9,420,097 times
Reputation: 14922

Advertisements

Quote:
Originally Posted by Peasy973 View Post
Remington, Toys R Us, etc. are all in the same position. Loaded with massive debt that the companies simply can't buy down or pay back and then claim bankruptcy. Isn't that how Mitt Romney made his wealth?
Nope.
Reply With Quote Quick reply to this message

 
Old 05-04-2018, 06:26 PM
 
28,107 posts, read 24,632,008 times
Reputation: 9523
I'm sure the corporations will come around in due course. They're not going to just sit there stockpiling money forever.

Haven't they plowed a lot of money and jobs into other low tax countries?
Reply With Quote Quick reply to this message
 
Old 05-04-2018, 08:05 PM
 
3,425 posts, read 3,241,743 times
Reputation: 8045
Quote:
Originally Posted by SportyandMisty View Post
OK, let me give you a specific example. Let's take building and operating a semiconductor fabrication factory ("Fab") designed to manufacture modern microprocessors such as the one inside your computer or tablet or smartphone you're using to read this post. The modern microprocessor has about 18 Billion transistors manufactured onto a slice of strained silicon about the size of your thumbnail, and is arguably the most complex thing ever invented or manufactured by mankind. That it can be manufactured & works at all is only this far >< away from magic.

A Microprocessor Fab is filled with very good paying jobs and highly skilled employees - they typically have PhDs in EE, ME, ChemE, IE, Materials Science, Photolithography and the like. The payroll costs are high.

Even so, the cost of labor is in the noise - it isn't even a rounding error. The capital costs of building a Microprocessor Fab are immense - you start with a clean slate (you rarely refurbish an existing Fab once it is up and running) which means raw dirt. You invest north of $6 Billion to build the Fab just as fast as you can over several years and you have your fingers crossed that there will be a market for the little microprocessors you plan to build several years down the line.

An analysis of the total costs over 10 years to build and operate the Fab -- capital, toolset, materials, supplies, labor, etc etc etc etc shows that it costs an extra $1 Billion to build and operate the Fab in the USA compared to overseas. Almost all of that extra $1 Billion is because of US income taxes. Most of the rest is because of US environmental regulations.

Labor costs more in the USA but even so total labor costs are in the noise.
Raw materials cost essentially the same around the world.
Semiconductor manufacturing equipment ("toolset") costs the same around the world.
Fabs consume a lot of electricity and water, and while those rates differ around the world, they too are not a major factor.

The difference is Taxes. It costs an extra $1 Billion to build and operate a Fab in the USA almost completely because of US taxes.
About a year ago, Intel cut the ribbon on a multi-billion dollar fab in Arizona, and they specifically credited the President's regulatory and tax policies (tax cut hadn't passed yet but they had faith that it would).

People who don't work in the private sector, or who are peons at the bottom of the totem pole, tend not to appreciate the subtleties of finance or monetary incentives. And why should they? Their only incentive is to work as little as possible. There are a lot of them, and they vote, which is one reason we're in such a mess.

If we let the private sector work its magic, we'd be twice as rich as we are today, with much less debt. Now we have to try and reverse fifty years of anti-business legislation and put America back to work. We've made a good start, but the forces aligned against these reforms are very powerful and seductive. They would rather we all be poor and dependent on Big Daddy Government. Gotta keep pushing back!
Reply With Quote Quick reply to this message
 
Old 05-04-2018, 08:36 PM
 
5,220 posts, read 2,375,434 times
Reputation: 5111
Quote:
Originally Posted by SportyandMisty View Post
He learned about write-offs here:

Lol!!
Reply With Quote Quick reply to this message
 
Old 05-05-2018, 02:48 AM
 
Location: Clarence, NY
399 posts, read 125,400 times
Reputation: 505
Not my money that they're spending, so im not gonna go around policing that...... when I'm bailing those companies out, then ive got problems
Reply With Quote Quick reply to this message
 
Old 05-05-2018, 02:50 AM
 
Location: Clarence, NY
399 posts, read 125,400 times
Reputation: 505
And while I dont care for this tax cut ( I think it was half-a**ed), it may be a bit early to tell as to wether it works in the long term
Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics
Similar Threads
Follow City-Data.com founder on our Forum or

All times are GMT -6.

2005-2018, Advameg, Inc.

City-Data.com - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35 - Top