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You need to face the fact companies are in business to make a profit in markets that are highly competitive globally and are going to seek whatever edge they can to remain competitive. Here's the quote I always like to use from an acquaintance of mine that owns a small manufacturing business. To put this into contex this was 2007 and he was swamped with orders:
He has this option becsue it's a niche market without any foreign competition. My question for you is what does he do when one of his competitors decides to take this deal or some foreign based company moves into his market severely undercutting him? Does he just watch his business that he spent decades building evaporate?
Actually the US should back US businesses when it comes to selling to Americans and exporting our good to other countries. I would rather be an exporter country than an importer country because there are little jobs in importing.
If a company wants to move all their work to China, that is fine, but they shouldn't look to the US for sympathy.
Actually the US should back US businesses when it comes to selling to Americans and exporting our good to other countries. I would rather be an exporter country than an importer country because there are little jobs in importing.
If a company wants to move all their work to China, that is fine, but they shouldn't look to the US for sympathy.
That all well an good but that doesn't answer my question, what does this guy do when one his competitors takes this offer or some foreign company moves into his market undercutting his product?
This is the reality that any company in this country faces whether it's a small one like the one I'm describing or mega corporation.
If you want to back US business you can start by getting rid corporate and business taxes, the business's will come flooding in. Piling on more is only going to make the situation worse.
The Joint Committee on Taxation has estimated that Sen. Sander's bill will raise close to 600 Billion dollars over the next decade if passed while incentivizing companies to bring their manufacturing and overseas locations back to the US. Naturally, the GOP will argue this as a blow to business and detrimental to our economy, but the rationale behind that is unbeknownst to me. This legislation will remove the incentive to offshore funds and bring in billions in additional revenue which will assist greatly in ensuring that we have the resources to fund our obligations.
"Corporations offshoring profits costs both the federal government and states billions of dollars per year. One of the more egregious giveaways is known as “deferral,” which allows U.S. corporations to avoid paying taxes on overseas profits until they bring that money back to the U.S., giving them every incentive to leave it overseas permanently.
According to the Congressional Budget Office, “The current tax system provides incentives for U.S. firms to locate their production facilities in countries with low taxes as a way to reduce their tax liability at home,” ultimately resulting in compensation for U.S. workers being lower. Sen. Bernie Sanders (I-VT) is introducing a bill today that would end this practice and close several other corporate tax loopholes:
Under this legislation, corporations would pay U.S. taxes on their offshore profits as they are earned. This legislation takes away the tax incentives for corporations to move jobs offshore or to shift profits offshore because the U.S. would tax their profits no matter where they are generated.
Under the Corporate Tax Fairness Act, U.S. corporations would continue to get a credit against their U.S. taxes for foreign taxes they pay. That means that when an American corporation has profits in a country with lower corporate taxes than the U.S., they would pay the federal government the difference between the foreign rate and the U.S. rate. When an American corporation has profits in a country with higher corporate taxes than the U.S., they would pay nothing to the U.S.
According to the Joint Committee on Taxation, “the provisions in this bill will raise more than $590 billion in revenue over the next decade.”
Due to the proliferation of loopholes, credits, and the use of tax havens, major corporations haven’t paid the full statutory tax rate in 45 years. In 2011, the 12.1 percent effective rate that corporations paid was the lowest in 40 years."
The rationale behind it is unbeknownst to you? Why? Gee, I wonder why anyone would oppose taxing profits in America that companies make in other nations. What could possibly go wrong with that? Come on, just use your head.
Say Germany has taxes at 15 and America has them at 25. That means German company BMW pays 15 on cars they sell in Germany, while American company Ford pays the same 15 on cars they sell in Germany to the German government that BMW does, plus an additional 10 on those same cars to America. And the rationale behind this being bad is unbeknownst to you? It completely escapes you how this puts the American company at a global disadvantage?
Many companies pay ZERO corporate taxes. It would seem that this would be an area in which a Minimal Corporate tax should be enacted for companies that want to do business here.
Many companies pay ZERO corporate taxes. It would seem that this would be an area in which a Minimal Corporate tax should be enacted for companies that want to do business here.
No company actually pays taxes. In most cases when paid their customers pay them. So even if you get more all you are doing is double taxing yourself. The better option is to decrease the need for more taxes.
Sounds to me like an excellent plan to permanently drive these companies out of this country altogether and export their product here.
That would be the unintended consequence of such legislation. But liberals never carry these ideas out to their logical conclusion.
Interesting that they call these tax "loopholes" that "too many companies take advantage of." Well who created the "loopholes?"
Sanders also said that, "It is past time for corporate America to contribute significantly to deficit reduction." Well, excuse me, Mr. Sanders, but who created the deficit? Why should corporations cover for the irresponsible spending of an out of control government that hasn't even passed a budget in four years? Or has it been only threee? No matter.
The bill also aims to tighten rules on royalties for oil and gas extraction. Oh, gee, thanks. We have a gas boom here, and those royalties are a boon to cities and townships (and individuals as well — I'm hoping to reap some benefit on our 11 acres in the future). The royalty currently stands at 17%, minus costs (depending on the terms of your lease). I have read that the administration wants to tax those royalties at 3.8%! That's a huge amount that the government would reap, and will hurt many of us. Thanks, Obama, you ass!
Sounds to me like an excellent plan to permanently drive these companies out of this country altogether and export their product here.
Apart from what you may think, the taxes that U.S. companies actually pay in taxes is among the lowest in the world. Many multi-billion dollar profitable countries pay no taxes. So, where would they flee, to a country that axes them more?
That would be the unintended consequence of such legislation. But liberals never carry these ideas out to their logical conclusion.
Interesting that they call these tax "loopholes" that "too many companies take advantage of." Well who created the "loopholes?"
Sanders also said that, "It is past time for corporate America to contribute significantly to deficit reduction." Well, excuse me, Mr. Sanders, but who created the deficit? Why should corporations cover for the irresponsible spending of an out of control government that hasn't even passed a budget in four years? Or has it been only threee? No matter.
The bill also aims to tighten rules on royalties for oil and gas extraction. Oh, gee, thanks. We have a gas boom here, and those royalties are a boon to cities and townships (and individuals as well — I'm hoping to reap some benefit on our 11 acres in the future). The royalty currently stands at 17%, minus costs (depending on the terms of your lease). I have read that the administration wants to tax those royalties at 3.8%! That's a huge amount that the government would reap, and will hurt many of us. Thanks, Obama, you ass!
Excellent post! It is like the left have never heard of action-re action and just expect the corporations would just fall in line. This bill will not see the light of day because the corporations will be up in DC greasing palms of both parties, it is DOA.
No tax is fair. I don't mind being tax if they put to good use. But they are not.
If you want to save money, here is something that can start.
Cut politician salary and fringe benefits. Their budgets.
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