Since 2001 over 42,000 FACTORIES have shut their doors. Most of these companies have moved to countries that have a more business friendly environment. The argument that these companies simply moved to China due to wages begs the question, "Why hasn't Europe seen the same effect?" The U.S. has one of the highest Corporate Tax rates in the world. The U.S. doesn't allow the full deductibility of Capital Expenses like most other countries do. Read the full article
Wow, not a single reply to this... Millions out of work and no one cares, I guess that's the reason why Manufacturing is dead in the U.S.
What's the point? No one can compete with $.85 to $2.10 an hour labor that is allowed to work 15 hours a day with no overtime. Call it tax codes if you like, but the elephant in the room is below $1 an hour wage. Oh and Europe doesn't act like a slut when it comes to favorable protections.
I’ll give you one, we also give massive tax deduction to companies who do out source, so it is far more profitable to send jobs over seas double duty. Take note, Republicans defend that rule.
$1 wages coupled with the fact that most of their parts suppliers have moved to China.........Welcome to the race to the bottom...thank our "friends" in congress!!!!!!!!!!!!!!
Actually, our productivity level is very competitive, but Republican backed policies are the primary things keeping us from real job growth in this country. If we reversed the policies so we taxed incoming products from China to balance out the cheaper wages and then gave tax deduction incentives for keeping jobs here at home, we would be in a lot better shape. Corporate patriotism is a fairy tail.
Both parties have guilty here. Democrats inistiate the situation through regulation and taxation and republicans adapt and figure out a way to increase profits game the system to there favor.
No, what destroyed the american manufacturing industry was borderline slave labor in China that allows companies like Apple to save billions a year instead of keeping their factories here and paying higher wages. Look at what has happened......Walmart, which used to pride itself on selling products that were made in america, now sells 99% chinese goods in their stores.... GM, one of america's biggest car companies has 1/3 of their factories in china, and these factories do in fact ship back to the states, and not only in asia, as some cons claim. Apple has very few factories in america, and uses mostly sweatshop labor in china.
Red herring city! What started out as a good duscuusion got hijacked by foolish (if tacit) call for mindless protectionism.
Blaming China is convenient but doesn't hold water. Manufacturing has been in massive decline for almost 40 years. China is a relative newcomer. The war the federal govt has waged on manufacturing is the real culprit. Been going on a long time and getting worse by the day.
Your conclusion is based on irrelevant information. The US may have the highest nominal tax rates, but in terms of actual taxes collected, measured by revenues as a percent of GDP, it is in the lower end of taxes collected. Furthermore, there was no increase in corporate tax rates in 2001 or since that changed the environment from what it was before that would arguably induce corporations to leave. Therefore, your conclusion that corporations are leaving because of higher taxes is based on an erroneous analysis of facts. Did you consider this? Since 2001, investment taxes have been only 15%. Taxes on earned income go up to 35% plus FICA tax on top of that. When we have a tax code that so heavily favors speculative investment income over earned income, should it be any surprise that so much effort and resources are devoted to speculative investment income over production and earning? I think you were on the right track with taxes, but looking at the wrong information from the wrong perspective.
Our production level is actually higher even though they work more hours, but that's probably because you can make people work long, but you can't make them work hard. I agree with everything that you've said even though I think in a perfect world free trade is best. Where Republicans are willing to compromise on every civil liberty except imposing protectionist strategies, it's the only one I am willing to give in to.
