Quote:
Originally posted by tabasco85331
Every time I hear Democrats say that large companies and corporations don`t pay their proportionate taxes I laugh . They do . Are they referring to the incentives they get to do business and help our economy grow ? Doing business in the U.S. is very expensive and to not encourage big business is a real mistake . Many businesses have moved to Mexico and Canada where they are wanted and encouraged , i.e. - GM and many Ford plants to name only a couple of the hundreds . So , no plant = no jobs generated , no money to support stores , restaurants and the many small busines that are dependant on people with jobs . Get it ? No trickle = no tickle down . Taxing large companies were it`s no longer profitable to stay here is biting our nose off ! Would you open a business that you knew wouldn`t make money for the stockholders ? They wouldn`t either !
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Actually, little productive capacity has moved to Canada.
You have presented the problem. Companies are whining that it's too expensive to locate their productive capacity in the US. This is partially due to corporate taxes. So, what is your solution?
You present Mexico as the destination of the capacity. How do we compete with Mexico? We could not only lose corporate taxes completely (would that be enough? probably not) but we could ban unions, abolish the minimum wage, suspend any worker's rights under legislation and create Free Trade Zones where human rights are also suspended.
Why should we create the type of system that Mexico has? They have little tax base since they have no strong consumer middle class with a good income and they do not tax corporations. Did you chase those good manufacturing jobs to Mexico? No. Who wants to work for pennies a day without decent working conditions.
Why do we allow firms to sell their goods to us and make tremendous profits from us without contributing? We drop corporate tax rates (Canada has done this like crazy) but NOT ONE of those lost manufacturing jobs has magically returned. Companies just make more money. If you want to sell your goods here, you have to contribute. Whether it's through jobs or taxes, I don't care. Maybe we could eliminate the corporate tax, but legislate that goods must be made locally.
You are right about thae fact that is there is no "trickle" there will be no "trickle-down." The idea that if we reduce or eliminate the corporate tax that all these companies will magically start building productive capacity locally is being naive. There is no single simple solution. At one time we had managed trade between nations. Companies were expected to serve the needs of the citizens. They provided jobs, investment potential, and contributed to economic growth.
How does Nike do this? They would benefit greatly from your no-tax policy. But, they employ few Americans. Would they build sneaker plants if the tax was dropped? Sure... Keep dreaming. They would add to their bottom line, and laugh at all of us. Nike contributes little to our society other than paying a very small group of people and "allowing" us to buy $200 shoes. If they went broke tomorrow, would we notice? Probably not. Most of the job losses would be overseas. The firms that sell them marketing services would feel the pinch, and that's about it. Oh, and Mike's income would drop by $40-50 Million a year...