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Last post 12 years ago by Homebrew. 12 replies replies.
Let's bring back jobs to the US
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Homebrew Offline
#1 Posted: Thu, Jun 16 2011, 11:58 AM EST
Joined: 02-11-2003
Posts: 11,885
For several years I have been an advocate of ending NAFTA, so we could get our outsourced manufacturing jobs back. Recently I have had a change of heart. While no politician will ever dare bring up a bill to repeal NAFTA, as their corporate owners would disown them, maybe one could be willing to change the tax code to help bring back jobs. Probably not unless grass roots pressure was strong enough.

My idea is simple. If a corporation manufactures 50%, or more, of their products in the US, then drop their corporate tax rate to zero. If less than 50% of the manufacturing is done inside the US, than their corporate tax rate stays where it is. If they manufacture less than 30% of their products inside the US, their corporate tax rate will jump to 50%.

Also there should be changes in the capital gains rate. Money made on stock sales concerning a company who manufactures 50% or more of their products inside the US, the capital gains rate will be zero. Money made on stock trades on corporations who manufacture less than 50%, of their products inside the US, will stay at the current capital gains tax level. Money made on stock sales of companies who do less than 30% of their manufacturing inside the US will be taxed at 50% capital gains rate.

This will force US based companies, and investors in those companies to do what is right for our country, instead of being un-american and outsourcing jobs.


Dave (A.K.A. Homebrew)
HockeyDad Offline
#2 Posted: Thu, Jun 16 2011, 12:05 PM EST
Joined: 09-20-2000
Posts: 46,156
Fortunately this would only apply to manufacturing. A company like Walmart who manufactures nothing and imports 98.2% of their goods from China would be unaffected.
HockeyDad Offline
#3 Posted: Thu, Jun 16 2011, 12:10 PM EST
Joined: 09-20-2000
Posts: 46,156
The situation that people just don't want to understand is that business is global. People want to define businesses in terms of antiquated geopolitical lines on a map and that just won't work. There is no such thing as a great American company and there hasn't been for a long time. There might be a great American headquarters building and people confuse the two things.
MTappert Offline
#4 Posted: Thu, Jun 16 2011, 12:39 PM EST
Joined: 04-27-2011
Posts: 1,085
while i agree we need more jobs at home... i am NOT in favor of complicating the tax code further.

i think we can move leaps and bounds by moving to a 3 page tax code. There is NO REASON for the US Federal Tax Code to be so confusing, and full of so many loopholes.
HockeyDad Offline
#5 Posted: Thu, Jun 16 2011, 12:45 PM EST
Joined: 09-20-2000
Posts: 46,156
The US Federal Tax Code is government corruption at its finest.
DrMaddVibe Offline
#6 Posted: Thu, Jun 16 2011, 2:46 PM EST
Joined: 10-21-2000
Posts: 55,489
When the shareholders don't get the payoff they demand they'll come back to the table and craft the demise of NAFTA.

Until then more jobs will be lost.

More economic uncertainty will follow.
jpotts Offline
#7 Posted: Thu, Jun 16 2011, 3:58 PM EST
Joined: 06-14-2006
Posts: 28,811
Homebrew wrote:
For several years I have been an advocate of ending NAFTA, so we could get our outsourced manufacturing jobs back. Recently I have had a change of heart. While no politician will ever dare bring up a bill to repeal NAFTA, as their corporate owners would disown them, maybe one could be willing to change the tax code to help bring back jobs. Probably not unless grass roots pressure was strong enough.

My idea is simple. If a corporation manufactures 50%, or more, of their products in the US, then drop their corporate tax rate to zero. If less than 50% of the manufacturing is done inside the US, than their corporate tax rate stays where it is. If they manufacture less than 30% of their products inside the US, their corporate tax rate will jump to 50%.

Also there should be changes in the capital gains rate. Money made on stock sales concerning a company who manufactures 50% or more of their products inside the US, the capital gains rate will be zero. Money made on stock trades on corporations who manufacture less than 50%, of their products inside the US, will stay at the current capital gains tax level. Money made on stock sales of companies who do less than 30% of their manufacturing inside the US will be taxed at 50% capital gains rate.

This will force US based companies, and investors in those companies to do what is right for our country, instead of being un-american and outsourcing jobs.


Dave (A.K.A. Homebrew)


What if the products they make in foreign countries are sold in those foreign countries? What if the foreign entity mandates that they be made in their home country?

You going to penalize a US corporation for bringing money back into the US?
Homebrew Offline
#8 Posted: Thu, Jun 16 2011, 10:06 PM EST
Joined: 02-11-2003
Posts: 11,885
jpotts wrote:
What if the products they make in foreign countries are sold in those foreign countries? What if the foreign entity mandates that they be made in their home country?

You going to penalize a US corporation for bringing money back into the US?


That is why I stopped at 50% made in the US. Surely 50% of manufacturing would not stop companies from manufacturing goods overseas for overseas consumption. It would however make them have an incentive to produce more in the US. Besides multinational corporations hardly ever bring proceeds back into the country that were made abroad, since they then have to pay taxes. How do you think GE gets away with a corporate tax bill of zero. My idea would just put people to work here, instead of creating jobs in China.

It has been proven that tax cuts for the rich, create little to no jobs in the US. They do however create jobs in Mexico, India, China, Taiwan, and much of the rest of asia. It is also true, that NAFTA did exactly what Ross Perot said it would. While the giant sucking sound was not audible, doesn't mean its' effects were not felt. Rather than back out of NAFTA, and put tariffs back in place, this idea works within NAFTA, and still gives incentives for corporations to create jobs here, as opposed to in other countries.


To be honest, I just came up with the idea a few days ago. It will take a bit of time to actually work out the bugs, and think it through enough to be a fair solution, for non manufacturing businesses.

At least I am thinking outside of what the media spoon feeds us. And I am not parroting my favorite political parties talking points, which were also spoon fed to the masses, to make a point. At least I have a real idea, unlike most politicians. Most politicians just let the lobbyists write the bills, and then just come up with a way to sell it to the masses. Then they put a bunch of spin on it, to make the opposing side look evil for voting against it.

But I just don't buy it.

Dave (A.K.A. Homebrew)Beer
frankj1 Offline
#9 Posted: Thu, Jun 16 2011, 10:52 PM EST
Joined: 02-08-2007
Posts: 44,223
Homebrew wrote:
That is why I stopped at 50% made in the US. Surely 50% of manufacturing would not stop companies from manufacturing goods overseas for overseas consumption. It would however make them have an incentive to produce more in the US. Besides multinational corporations hardly ever bring proceeds back into the country that were made abroad, since they then have to pay taxes. How do you think GE gets away with a corporate tax bill of zero. My idea would just put people to work here, instead of creating jobs in China.

It has been proven that tax cuts for the rich, create little to no jobs in the US. They do however create jobs in Mexico, India, China, Taiwan, and much of the rest of asia. It is also true, that NAFTA did exactly what Ross Perot said it would. While the giant sucking sound was not audible, doesn't mean its' effects were not felt. Rather than back out of NAFTA, and put tariffs back in place, this idea works within NAFTA, and still gives incentives for corporations to create jobs here, as opposed to in other countries.


To be honest, I just came up with the idea a few days ago. It will take a bit of time to actually work out the bugs, and think it through enough to be a fair solution, for non manufacturing businesses.

At least I am thinking outside of what the media spoon feeds us. And I am not parroting my favorite political parties talking points, which were also spoon fed to the masses, to make a point. At least I have a real idea, unlike most politicians. Most politicians just let the lobbyists write the bills, and then just come up with a way to sell it to the masses. Then they put a bunch of spin on it, to make the opposing side look evil for voting against it.

But I just don't buy it.

Dave (A.K.A. Homebrew)Beer

it's refreshing to read thoughts that incorporate elements from various political positions. Adherence to dogma perpetuates the status quo. Congratulations for freeing yourself from the trap of the dominant schools of thought currently killing any chance of economic recovery. Change causes anxiety so you can expect negative feedback.

The two major positions have proven to be failures and some ideas from people like you who have taken control of your own destiny are the keys to "crossing the aisle" in search of real solutions. Litmus tests ensure more dogma leading to Americans actually hoping for failure when the "other" side is in power. I find it almost treasonous to wish for failure of any administration in control simply because it's not the administration someone voted for.

I'd be interested to read your thoughts as you develop them. Stay free.

Frank
Kawak Offline
#10 Posted: Thu, Jun 16 2011, 11:02 PM EST
Joined: 11-26-2007
Posts: 4,025
Impeach the biz kid Dear Leader?
frankj1 Offline
#11 Posted: Thu, Jun 16 2011, 11:12 PM EST
Joined: 02-08-2007
Posts: 44,223
my point exactly
Homebrew Offline
#12 Posted: Fri, Jun 17 2011, 12:28 AM EST
Joined: 02-11-2003
Posts: 11,885
If you think the republican party is really out to represent you, and your way of life, well guess what they don't. If you think the democrats represent you, and your way of life. Nope not happening. Neither party is good for the country. If you think it is possible to dig our country out of debt without raising taxes??? You are as deluded, as a schizophrenic. If you think that our debt will ever be paid down without cutting government spending, you are nuttier than a fruitcake.
I see myself as a right leaning moderate. I don't believe in a welfare state, or a fascist state. I am in the middle. Do I believe in someone telling me what foods i can eat??? Nope. Do i believe in someone telling me that I cannot smoke??? Nope. Do I believe that society should be able to tell me how to behave sexually??? Nope, as
long as both, or how ever many parties are involved, parties agree, and are of legal age.
I am a strict constitutionalists. I am fiscally conservative. I believe that we should help our fellow man, but teach him to fish, rather than give him fish. I believe that you should be able to make your fortune, and yes with the help of others. But that said, no one should make 1000 times higher salary, than the people who do the heavy lifting to make them that salary.
Should someone who works hard, has a novel idea, finds a perfect niche in the market become rich??? Hell yes they should. But not at the expense of the people who worked long and hard to make that dream a reality.


OK I have run out of steam tonight. I am a half hour past bedtime, and I have a small business to run in the morning. Ya'll have a great night/morning/day.

Dave (A.K.A. Homebrew)Beer
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