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You're looking at this from a micro level and it's far too complex and multi-pronged to do so. There are many factors each with different effects on our economy. The only purpose for my posting companies that are moving out of the country was to show that it is happening since some posters (AUM) didn't believe this to be the case.
First of all, there is the issue of corporate tax revenues to the government. US based corps pay corporate income tax and foreign based ones do not pay CIT. Obviously, the more US based corporations paying tax revenue to the US (as opposed to the revenue going to other countries), the better. Established businesses that engage in corporate inversion by moving their headquarters overseas do so to avoid our very high corporate income tax rate. They may or may not move significant numbers of jobs with them, or they may continue to have the bulk of their operations in the US and keep jobs here. Foreign companies that purchased US companies will ultimately have the same result... no more corporate income taxes to the US government (which can be quite substantial). These corporations may or may not move their base of operations (and jobs) as well. Lastly, there is the issue of new, start up ventures. This is probably the most important as companies looking to establish themselves will likely seek out the most tax friendly countries in which to base their operations and it behooves them to keep their base of operations within the same country as their headquarters. End result... no new jobs for US employees. We should be seeking ways to entice new corporations into setting up shop in our country, not only for the corporate tax revenue, but also for the jobs they will bring. As it stands, the US is not a likely destination because of our complicated and disadvantageous tax code in comparison to other countries.
The two main issues are corporate tax revenues to the government paid by businesses headquartered in the US and also where the jobs will be located. The more jobs located here, the more taxpayers paying personal income taxes to the government. Two separate sources of revenue for the government that are not necessarily exclusive of one another for the reasons listed above.
Also, our unit labor costs are not out of line with other first world countries as you claim. Unit labor costs are the cost of labor input (all costs to the employer including salary, benefits, PTO, etc.) required to produce one unit of output. There is a wide variance between countries but it may surprise you to see that we do not have the lowest labor costs (or even close to it) among first world nations. You can read more about it here.
Those charts were a little bit confusing, but i get your point.
My contention is this: we can do NOTHING to satiate the appetite of U.S. corporations at this point. That horse left the barn years ago, if it ever was possible to begin with.
What they (and you...seemingly) want is nothing short of free labor, free land, no regulations, and no taxes. Anything other than that is considered a burden too heavy to carry. That's just me cutting to the chase to avoid circular arguments...and telling the truth (at least the way i see it).
If you feel differently, i can respect that. But that's where i come down.
Those charts were a little bit confusing, but i get your point.
My contention is this: we can do NOTHING to satiate the appetite of U.S. corporations at this point. That horse left the barn years ago, if it ever was possible to begin with.
What they (and you...seemingly) want is nothing short of free labor, free land, no regulations, and no taxes. Anything other than that is considered a burden too heavy to carry. That's just me cutting to the chase to avoid circular arguments...and telling the truth (at least the way i see it).
If you feel differently, i can respect that. But that's where i come down.
No, I just want our country to be as competitive globally as possible. We can't do anything about labor costs, but we can affect the corporate tax rates and hopefully lure businesses back here. I'm not for free labor, land, no regulations, and no taxes. I am for bringing jobs back here, as hopeless a wish as that may be. If every other industrialized country has dropped their corporate income tax rates, most in the double digits (did you see the chart I posted in post #63?), then shouldn't we think about doing the same? We have to at least try, and this is our last hope as I see it short of creating new technology and renegotiating our trade contracts.
No, I just want our country to be as competitive globally as possible. We can't do anything about labor costs, but we can affect the corporate tax rates and hopefully lure businesses back here. I'm not for free labor, land, no regulations, and no taxes. I am for bringing jobs back here, as hopeless a wish as that may be. If every other industrialized country has dropped their corporate income tax rates, most in the double digits (did you see the chart I posted in post #63?), then shouldn't we think about doing the same? We have to at least try, and this is our last hope as I see it short of creating new technology and renegotiating our trade contracts.
I don't have a problem with lowering the rates, as long as it's connected to them bringing the jobs here. I don't want this country to become the Caymans.
And that has nothing to do with corporate tax rates.
Coming from the person who didn't even believe that corporations were leaving the US for more favorable business environments either. You do realize there is a term for that and it's called corporate inversion? You asked for examples and I gave them to you. No comment on that?
The higher the tax burden a business bears, the lower their bottom line and the less net profit. Publicly traded businesses share their profit with their shareholders. Making business less competitive through draconian tax policy leads to decreased profitability. If you can't see the relation, then I can't help you.
Yes, I'm interested in a fair price for products, but I also believe that sharing the wealth is good for society. That's why we have programs such as Social Security and Medicare. There's nothing wrong with taxing very high corporate incomes at higher rates in order to benefit everyone who is a citizen of this country.
By all means donate to your hearts content. Sharing is voluntary. When it is taken against someones will, I call it stealing.
Coming from the person who didn't even believe that corporations were leaving the US for more favorable business environments either. You do realize there is a term for that and it's called corporate inversion? You asked for examples and I gave them to you. No comment on that?
The higher the tax burden a business bears, the lower their bottom line and the less net profit. Publicly traded businesses share their profit with their shareholders. Making business less competitive through draconian tax policy leads to decreased profitability. If you can't see the relation, then I can't help you.
Well when we are the only country to have increased our corporate tax rates in the past 20 years, what does that tell you? Not only that, but every other country has dropped theirs by an average of double digit percentage points. Once Japan lowers theirs by 5 percentage points, we will have the highest rates in the world. And you don't think that's draconian?
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You do realize there is a term for that and it's called corporate inversion? You asked for examples and I gave them to you. No comment on that?
