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-35+10= Success?

Cut 35% Corporate Tax and add 10% Import Tariff?


  • Total voters
    4

ChezC3

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Abolish the 35% corporate tax rate while implementing an across the board 10% tariff on all imports.

This could:
Bring US Companies home
Bring US Company's cash home
Bring Foreign Companies and their cash to our home to avoid the tariff and avoid corporate tax.

Sound good?
 

ChezC3

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Oh and as an added bonus we'd be able to cut the size of the IRS down by at least 1/3...
 

Captain Adverse

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Abolish the 35% corporate tax rate while implementing an across the board 10% tariff on all imports.

This could:
Bring US Companies home
Bring US Company's cash home
Bring Foreign Companies and their cash to our home to avoid the tariff and avoid corporate tax.

Sound good?

Hmmm, I dunno, historically increasing tariffs has only resulted in foreign nations increasing their tariffs in response, thus negating the value of your suggested reason for eliminating the Corporate tax rate.

Furthermore, corporations also moved out of the USA because of the incredible bargain they get from paying drastically reduced wages to citizens of China, India, Indonesia, etc. that would remain an advantage even with reduced corporate taxes.

Finally, unless something is done regarding government spending, you'll simply increase the deficit while reducing tax income.

So I'd say this would not be sufficient to make worthwhile changes in the current economic situation. Perhaps a combination of other suggestions remain in your bag of economic tricks? ;)
 

ChezC3

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Hmmm, I dunno, historically increasing tariffs has only resulted in foreign nations increasing their tariffs in response, thus negating the value of your suggested reason for eliminating the Corporate tax rate.

Furthermore, corporations also moved out of the USA because of the incredible bargain they get from paying drastically reduced wages to citizens of China, India, Indonesia, etc. that would remain an advantage even with reduced corporate taxes.

Finally, unless something is done regarding government spending, you'll simply increase the deficit while reducing tax income.

So I'd say this would not be sufficient to make worthwhile changes in the current economic situation. Perhaps a combination of other suggestions remain in your bag of economic tricks? ;)

Well, you have valid points but lets flesh this bad boy out...

I believe the tit for tat response you mention while possibly true would become obsolete as you could very well see a mass migration of foreign companies coming to our fair land to avoid not only the tariff but also their own country's taxation. This would also increase value for their shareholders as it would cut the transportation costs to the world's largest consumer market exponentially. No tax. lower transport costs, no tariff, eh, I don't know it's looking better and better... The corresponding tariffs other countries would impose could actually backfire keeping their markets from receiving the goods they previously had but now are priced out of competition because they're made in America.

Second, yes I agree the US corps do ship jobs overseas, for bargain but again transport, increased revenue, hmmm, you know let me evaluate a few things, heh, it's funny, I am usually the one arguing your position on this particular point. Felt so damn right about it I can't even remember any counters the opposition offered :lol:

Third, government spending does need to get reigned in, yes, I agree too. This wasn't just a two show pony,but it was a little one - two combo to kick start things in the right direction. An increase in jobs, would mean an increase in personal spending, which would increase sales tax on all levels. More jobs would bring more personal income tax which we should get away from as well focusing on a consumption tax instead. The increase in employment would cut the need for government spending as well more people at work means more people off the dole...

So, yeah this isn't by itself a sufficient solution to fix all our problems but a drastic measure such as this would turn enough heads and perhaps provide some daring companies with enough incentive to take the bull by the horns...

Oh and as my 2nd post stated, we would be cutting government spending in some measure by putting a whole lot of IRS employees into the job market...
 

Captain Adverse

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Well, you have valid points but lets flesh this bad boy out...

I believe the tit for tat response you mention while possibly true would become obsolete as you could very well see a mass migration of foreign companies coming to our fair land to avoid not only the tariff but also their own country's taxation. This would also increase value for their shareholders as it would cut the transportation costs to the world's largest consumer market exponentially. No tax. lower transport costs, no tariff, eh, I don't know it's looking better and better... The corresponding tariffs other countries would impose could actually backfire keeping their markets from receiving the goods they previously had but now are priced out of competition because they're made in America.

Second, yes I agree the US corps do ship jobs overseas, for bargain but again transport, increased revenue, hmmm, you know let me evaluate a few things, heh, it's funny, I am usually the one arguing your position on this particular point. Felt so damn right about it I can't even remember any counters the opposition offered :lol:

Third, government spending does need to get reigned in, yes, I agree too. This wasn't just a two show pony,but it was a little one - two combo to kick start things in the right direction. An increase in jobs, would mean an increase in personal spending, which would increase sales tax on all levels. More jobs would bring more personal income tax which we should get away from as well focusing on a consumption tax instead. The increase in employment would cut the need for government spending as well more people at work means more people off the dole...

So, yeah this isn't by itself a sufficient solution to fix all our problems but a drastic measure such as this would turn enough heads and perhaps provide some daring companies with enough incentive to take the bull by the horns...

Oh and as my 2nd post stated, we would be cutting government spending in some measure by putting a whole lot of IRS employees into the job market...

Thanks for the reply. I took much of what you said into consideration before voting "mabe so." I didn't think it was outside the realm of possibility but felt that there were too many other factors working against it to really be viable alone . For example, one of our biggest markets China, maintains control over it's "free market socialism" and it is unlikely to allow most companies much leeway in transferring to the USA. Some, yes, but probably to get a foothold for a little skullduggery I'd think.

Now do ME a favor and check out my Poll regarding the Constitutionality of National Security Letters. (Yes this is a blatant appeal for input on what I think is an important issue in US politics somehow being overlooked when dealing with this "Snowden" event.) ;)
 
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