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)

Homebrew 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?

jpotts 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)🍺

Homebrew wrote: