Quote:
Originally Posted by Atticus
What actually does work is 'Trickle Up' economics.
You give a corporation a tax break or subsidy and they pocket it. Because they understand that there is no reason to build a new factory/location or hire employees because there is no demand. Their #1 goal is to increase shareholder value.
You give a tax break to the middle class or working class and they spend it. Either on necessities needed to survive or some crap they probably don't need. Their purchasing power creates demand which in turn causes corporations to expand.
The money ends up in the same spot however it also creates new employment and a stronger middle class in the process.
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That's not true at all. The section 179 depreciation has been responsible for 2013 being one of the strongest years in decades for the machine tool industry. And those machines are used for only one thing. To manufacture goods.
My company is no different than any other business our size. We made good use of those tax incentives. We added well into the 7 figures on new equipment and added 60 jobs..with benefits. Plans are already underway to do it again in 2014 and I believe we will be able to add nearly 100 more full time employees. Business went through the same recession as everyone else. We can't afford to retool and pay higher taxes.
China is losing it's edge. Wages there are increasing, shipping costs are also going up. And doing business with them has never been easy. Only cheap. This is the best opportunity for growth that I've seen in years. Large corporations that have been purchasing in China are coming back to the US for their production needs.
What's more important. Rebuilding manufacturing jobs or giving more money to the government to waste.