Quote:
Originally Posted by Robbie
Companies have been moving shit out of our country, and instead of our govt. lowering corporate taxes in the past and luring businesses in...they simply created new tax laws to "chase" that money in other countries.
And the way you see the results of that are to take a look at companies fleeing high tax states and moving to states with NO state income tax.
Works the same way on a Federal level.
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Robbie, i hope you realize that some country's offer a subsidized -0- taxation to get those company's to locate there.
And congress has passed legislation at least twice in the last 20 years that allows tax advantage to those 'multinational' company's that move their headquarters outside the US.
And there are plenty of other reasons for most of that movement.
A quick story,
A solar panel manufacture in the 90's who made the best cells in the industy was bought-out by BP just as they were building one of the most advance manufacturing facilities ever.
One of their competitors decided to beat this arrangement with just as good of tech, they needed to move production to China.
Once that company took the high tech manufacturing technique over there and made for some stiff competition, others moved as well because if they didn't, they were done.
Then, BP moved there manufacturing over there as well about 6-7 years ago. no choice by then.
So that advance facility in Virginia sits empty and a transfer of tech has been made and nobody can really compete with Chinese manufactures.
But I could not understand the reasoning. these were highly automated plants so it was not about labor at the time and that was what was being said about it.
It was incentivized by the Chinese government.
Taxes are only high by perception. You are not counting the benefits of being in that country. And only high when you compare them to someone who is lower.
What a benefit when the banks/oil company's were storing oil in tankers of the African coast to JACK the price of oil 12 years ago and we had to send the US military to defend them. And they like to complain about their tax rates ...
Go Figure !
If corporate taxes were -0- , they would ask us to pay them to create every job.
That is just how it works.... MORE MORE MORE
As the auto co's were making record profits year over year, they bake those margins in for the next year and if they do not make them yet again, they would claim they are loosing money hand over fist. Inflation is built into American manufacturing via profit levels and margins