Manufacturers moved to China so now they can pay to move themselves back.

Penelope

Diamond Member
Jul 15, 2014
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Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.
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The idea of covering 100 percent of moving costs was also recently endorsed by White House economic adviser Larry Kudlow, who said it would be “a very good thing for American companies.”


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BS, who do you think pays the Chinese tariffs, we do. And we do not need to pay to move them back.
 
Well, yeah.

You don't really expect Corporate America to have to cough any money on their own do you?

The problem is, they shouldn't have been allowed to move to China in the first place. They didn't make the rules, they just exploited them.

What should have happened, is Clinton should NOT have been pushing for China into the WTO. America and the West should have viewed Communist China as we did the Russians in the 1980's and basically had minimal economic relations.

China has strong armed every nation and politicians are subversive to them. Let's say for arguments sake, this virus was a trial run, or possibly a situation that accidentally revealed how much power China could have if they decided to unleash something on purpose. With such obedient and weak wristed leadership that has placed capitalism and liberty at risk, how much more unsafe are we with China controlling the global economy?
 
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Another policy failure emerging as corporations will take the free money and then use it to determine how to disguise the Chinese content of the goods they sell.

Creeping socialism from an administration of creeps.

The only industry that will develop is lawyers and accountants who specialize in maximizing the corporations' free money take.
 
Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.
snip
The idea of covering 100 percent of moving costs was also recently endorsed by White House economic adviser Larry Kudlow, who said it would be “a very good thing for American companies.”


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BS, who do you think pays the Chinese tariffs, we do. And we do not need to pay to move them back.
I think it would be money well spent to move production back to America

It was really stupid to relocate there on the first place
 
Well, yeah.

You don't really expect Corporate America to have to cough any money on their own do you?
It’s the American Way for American taxpayers to pay for all manner of benefits government grants big corporations. Those same big corporations make sure to fund the campaigns of the politicians who grant them benefits Americans pay for.

Its a racket the Mafia can only dream of.

When will the American people (really major league SUCKERS) realize the fraud being perpetrated on them?
 
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Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.
snip
The idea of covering 100 percent of moving costs was also recently endorsed by White House economic adviser Larry Kudlow, who said it would be “a very good thing for American companies.”


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BS, who do you think pays the Chinese tariffs, we do. And we do not need to pay to move them back.
I think it would be money well spent to move production back to America

It was really stupid to relocate there on the first place

So the huge profits they earned were rewards for stupidity?
 
Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.
snip
The idea of covering 100 percent of moving costs was also recently endorsed by White House economic adviser Larry Kudlow, who said it would be “a very good thing for American companies.”


--------------------------------------------------
BS, who do you think pays the Chinese tariffs, we do. And we do not need to pay to move them back.
I think it would be money well spent to move production back to America

It was really stupid to relocate there on the first place

So the huge profits they earned were rewards for stupidity?
The stupidity was by US politicians who make trade policy

most of those CEOs have no longterm interest in the companies they lead

they are hired guns who get their rewards up front
 
I wish people would use sites that have some semblance of sense. Many of these sites want to sow division so they can confuse the idea world. If you believe nothing is real or true you can be more easily led.

 
Not fond of just giving money to greedy corps that screwed American workers out of jobs. On the other hand, bringing manufacturing back home...

Idk on this one. That's a tough decision.
 
Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.
snip
When did keeping more of THEIR money change to TAKING money?

Behold, the warped mind of a greedy, envy-ridden, pilfering commie, folks.

IT’S NOT YOUR FUCKING MONEY!!!

.
 
Not fond of just giving money to greedy corps that screwed American workers out of jobs. On the other hand, bringing manufacturing back home...

Idk on this one. That's a tough decision.
It’s an easy call.

Filthy, greedy, plundering ass wipes in government made them pay for the “privilege” of employing Americans while allowing competitors the use illegal alien labor, which is what drove them to China in the first place. Government can PILFER LESS MONEY from them to allow them to come back.

Easy call.
.
 
Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.
snip
The idea of covering 100 percent of moving costs was also recently endorsed by White House economic adviser Larry Kudlow, who said it would be “a very good thing for American companies.”


--------------------------------------------------
BS, who do you think pays the Chinese tariffs, we do. And we do not need to pay to move them back.

I want to start off by saying that I actually on a general level, agree with you. I don't think we should be giving tax breaks for companies moving around.

However, there are couple of claims being made in response to your post, that I disagree with.

First, the claim that companies shouldn't pay anything for moving. Basically that this tax cut will pay for their entire moving expenses.

Wrong. This is a tax deduction. It does not "cover" the cost of moving.

Say the cost to move operations out of China, is roughly $1 Million dollars. That means you can deduct $1 Million dollars from your taxable profits. The current corporate tax rate is 21%.

That means a company spent $1 Million dollars, and saved $210,000 in taxes.

How does $210K in taxes saved.... cover a $1,000K cost of moving expenses? Well it doesn't. There are no taxes, or tax deductions, or tax abatement anywhere, that end up with the company coming out ahead.

The idea is unsupported by the evidence.

Second, the tax is unlikely to even be as effective as I outlined above. Remember, companies only pay tax on their profits. So in order to even save that $210,000 dollars in taxes I mentioned above, you have to actually owe that much in taxes to begin with, which means posting profits.

The problem we have right now, is companies are not posting much in profits. Because everything is shut down, there is low, to no profits to be had. Well if you owe zero taxes, because you have no profit, how much good does a tax deduction do you? None.

Additionally, the fundamentals of where to move a factory, are as always, based on how profitable the action will be.

Meaning that, say you have 3 options on where to move a factory. Canada, US, Mexico. You can move the factory to any of those 3 places. You do the calculations, and find you'll make a profit of:
Canada: $1 Million per year.
Mexico: $10 Million per year.
US Barely break even per year.

Where are you going to build the factory? Mexico.

One short-term tax deduction of $210,000, is never going to get you to move the factory to the US, is you can't make huge profits in the US.

This is why Mexico doesn't need to even after a tax deduction. If you have the best location to make profits, you don't need to give a deduction to get people to move there.

We need to stop with these stupid short term, lame excuses for incentives, and focus on making the economy as a whole more attractive to make a profit in. De-regulate stuff. Reduce expensive requirements. Get the EPA to stop making it so difficult on companies to open new factories. Reduce the red-tape.

You make the US economy the most profitable economy in the world to produce and manufacture things, and we won't need a tax break to get people to build and invest here. They'll be stampeding to be in this market, without any incentives.
 
Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.
snip
The idea of covering 100 percent of moving costs was also recently endorsed by White House economic adviser Larry Kudlow, who said it would be “a very good thing for American companies.”


--------------------------------------------------
BS, who do you think pays the Chinese tariffs, we do. And we do not need to pay to move them back.

I want to start off by saying that I actually on a general level, agree with you. I don't think we should be giving tax breaks for companies moving around.

However, there are couple of claims being made in response to your post, that I disagree with.

First, the claim that companies shouldn't pay anything for moving. Basically that this tax cut will pay for their entire moving expenses.

Wrong. This is a tax deduction. It does not "cover" the cost of moving.

Say the cost to move operations out of China, is roughly $1 Million dollars. That means you can deduct $1 Million dollars from your taxable profits. The current corporate tax rate is 21%.

That means a company spent $1 Million dollars, and saved $210,000 in taxes.

How does $210K in taxes saved.... cover a $1,000K cost of moving expenses? Well it doesn't. There are no taxes, or tax deductions, or tax abatement anywhere, that end up with the company coming out ahead.

The idea is unsupported by the evidence.

Second, the tax is unlikely to even be as effective as I outlined above. Remember, companies only pay tax on their profits. So in order to even save that $210,000 dollars in taxes I mentioned above, you have to actually owe that much in taxes to begin with, which means posting profits.

The problem we have right now, is companies are not posting much in profits. Because everything is shut down, there is low, to no profits to be had. Well if you owe zero taxes, because you have no profit, how much good does a tax deduction do you? None.

Additionally, the fundamentals of where to move a factory, are as always, based on how profitable the action will be.

Meaning that, say you have 3 options on where to move a factory. Canada, US, Mexico. You can move the factory to any of those 3 places. You do the calculations, and find you'll make a profit of:
Canada: $1 Million per year.
Mexico: $10 Million per year.
US Barely break even per year.

Where are you going to build the factory? Mexico.

One short-term tax deduction of $210,000, is never going to get you to move the factory to the US, is you can't make huge profits in the US.

This is why Mexico doesn't need to even after a tax deduction. If you have the best location to make profits, you don't need to give a deduction to get people to move there.

We need to stop with these stupid short term, lame excuses for incentives, and focus on making the economy as a whole more attractive to make a profit in. De-regulate stuff. Reduce expensive requirements. Get the EPA to stop making it so difficult on companies to open new factories. Reduce the red-tape.

You make the US economy the most profitable economy in the world to produce and manufacture things, and we won't need a tax break to get people to build and invest here. They'll be stampeding to be in this market, without any incentives.
Raise tariffs on the goods imported from china

particularly high value electronics like iPhones and computers

it may not production back to America but will move it out of china
 
Green told The Epoch Times that his forthcoming bill would allow firms to deduct the entire cost of capital spending associated with relocating from China—known as “immediate expensing”—to lure companies to move to the United States. The bill would pay for this with money collected from U.S. tariffs on Chinese imports, he proposed.
snip
The idea of covering 100 percent of moving costs was also recently endorsed by White House economic adviser Larry Kudlow, who said it would be “a very good thing for American companies.”


--------------------------------------------------
BS, who do you think pays the Chinese tariffs, we do. And we do not need to pay to move them back.

I want to start off by saying that I actually on a general level, agree with you. I don't think we should be giving tax breaks for companies moving around.

However, there are couple of claims being made in response to your post, that I disagree with.

First, the claim that companies shouldn't pay anything for moving. Basically that this tax cut will pay for their entire moving expenses.

Wrong. This is a tax deduction. It does not "cover" the cost of moving.

Say the cost to move operations out of China, is roughly $1 Million dollars. That means you can deduct $1 Million dollars from your taxable profits. The current corporate tax rate is 21%.

That means a company spent $1 Million dollars, and saved $210,000 in taxes.

How does $210K in taxes saved.... cover a $1,000K cost of moving expenses? Well it doesn't. There are no taxes, or tax deductions, or tax abatement anywhere, that end up with the company coming out ahead.

The idea is unsupported by the evidence.

Second, the tax is unlikely to even be as effective as I outlined above. Remember, companies only pay tax on their profits. So in order to even save that $210,000 dollars in taxes I mentioned above, you have to actually owe that much in taxes to begin with, which means posting profits.

The problem we have right now, is companies are not posting much in profits. Because everything is shut down, there is low, to no profits to be had. Well if you owe zero taxes, because you have no profit, how much good does a tax deduction do you? None.

Additionally, the fundamentals of where to move a factory, are as always, based on how profitable the action will be.

Meaning that, say you have 3 options on where to move a factory. Canada, US, Mexico. You can move the factory to any of those 3 places. You do the calculations, and find you'll make a profit of:
Canada: $1 Million per year.
Mexico: $10 Million per year.
US Barely break even per year.

Where are you going to build the factory? Mexico.

One short-term tax deduction of $210,000, is never going to get you to move the factory to the US, is you can't make huge profits in the US.

This is why Mexico doesn't need to even after a tax deduction. If you have the best location to make profits, you don't need to give a deduction to get people to move there.

We need to stop with these stupid short term, lame excuses for incentives, and focus on making the economy as a whole more attractive to make a profit in. De-regulate stuff. Reduce expensive requirements. Get the EPA to stop making it so difficult on companies to open new factories. Reduce the red-tape.

You make the US economy the most profitable economy in the world to produce and manufacture things, and we won't need a tax break to get people to build and invest here. They'll be stampeding to be in this market, without any incentives.

"Those who cannot learn from history are doomed to repeat it. " [George Santayana]

The real issue is the US dollar is too highly-priced because it is buoyed by capital inflow from foreigners investing their money in the USA mostly in a manner that is not productive to the US economy. This makes US goods and services less competitive than they would otherwise be in the international markets.

The only way to reduce capital inflow is to tax capital inflow which will produce very large revenue and reduce the US dollar.

Compelling manufacturers to return to the USA is not a winning policy because there is no economic reason for them to do so. They moved overseas because they perceived it would be more profitable. Returning to the USA will reduce their profits.

Then there are the supply chains that support manufacturers in China. If they don't also move to the USA there won't be any benefit because the components used in manufacturing will have to be imported.

I manufacturers move to the USA they will move out again once the flow of free money dries up.

Those that don't learn from history are doomed to repeat their mistakes.
 
Well, yeah.

You don't really expect Corporate America to have to cough any money on their own do you?
It’s the American Way for American taxpayers to pay for all manner of benefits government grants big corporations. Those same big corporations make sure to fund the campaigns of the politicians who grant them benefits Americans pay for.

Its a racket the Mafia can only dream of.

When will the American people (really major league SUCKERS) realize the fraud being perpetrated on them?
Nope. they will not. Trump rails against the big corp and then all his legislation enriches them. Trickle down economics is the rich pissing on the poors head.
 

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