Under Trump, US jobs are moving overseas even faster than before

Again, taxes are on profits. If profits are far greater in other countries, due to far lower costs, US taxes would have to be really low to attract business back to America, in order to compensate for the higher costs/reduced profit.

Here's another example:

Country A - low costs result in a healthy $1,000,000 profit, taxed at 30%, leaving a net profit of $700,000.

Country B - high costs result in a less healthy $500,000 profit, taxed at 21% (per Trump tax reform), leaving a net profit of $395,000

So again, which country would you prefer to do business in?

 

We can't and wouldn't want to reduce wages in America to third world levels. We can reduce taxes and we can get rid of job killing policies. Trump is doing all of the above and all he can. I'd like to hear your argument how keeping corporate taxes high will keep corporations in America. Good luck with that.

 

Can you cite a specific policy and identify a specific company that reacted and left the US because of TGIF specific Obama policy.
You won't because you can't.

 

If corporations make more profit when based abroad then they will stay there. Or worse, the decrease in tax will help pay for US based companies to relocate outside the US. Reducing corporation tax for US based companies can result in less income for the government resulting in less money available to spend on US funded projects or will result in an increase in budget deficit

 

I have never said "keeping corporate taxes high will keep corporations in America". Therefore, no argument necessary.

I have, however, shown how a lower tax rate (per Trump) does little or nothing to lure businesses back from low cost/high profit countries.

And, am still waiting to hear which of the countries in my example YOU would prefer to do business in.

 

JFK and Reagan both reduced taxes on corporations and both saw increased tax revenue.

 

Didn't apple just repatriate billions? That's a good example of the new tax deal luring companies back.

 

They paid $38 billion in tax on $252 billion of cash held overseas, because they had no choice - they were required to do so by the TCJA.

Otherwise, what has been "lured back"?

 

The percentage trend increase in revenue after Reagan decreased the rate from 46% to 40% to 34% went down.

• FY 1994 - $1.26 trillion. (34%) rate increase 9.5%
• FY 1993 - $1.15 trillion. (34%) rate increase 5.5%
• FY 1992 - $1.09 trillion. (34%) rate increase 3.8%
• FY 1991 - $1.05 trillion. (34%) rate increase 1.9%
• FY 1990 - $1.03 trillion. (34%) rate increase 3.9%
  
• FY 1989 - $991 billion. (34%) rate increase 9%
  
• FY 1988 - $909 billion. (40%) rate increase 6.4%
  
• FY 1987 - $854 billion. (46%) rate increase 11.2%
  
• FY 1986 - $769 billion. (46%) rate increase 4.8%
  
• FY 1985 - $734 billion. (46%) rate increase 10.2%
  
• FY 1984 - $666 billion. (46%) rate increase 10.8%
• FY 1983 - $601 billion. (46%)

• 
  
  

 

Lookie here, actual facts.

 

No matter, it is Party Politics at it's Best ( Worst )
Lots of People hate the current President, so it will not matter what he does, good or bad, it will never be to his credit, and truthfully, he does not help his own image much.

If Obama did anything, People said, well you know and blamed someone else.

I stub my toe and yell, #$!@ Trump !!!

Big Business sets the tone for any Government policies, and Jobs have been lost to foreign markets because of cheap labor, most Automotive parts say "MADE in MEXICO" stamped on the box.

Eventually those cheaper costs cost more than just the initial losses.

I use my toothbrush example, lets say it costs $1.00 to produce a toothbrush in the U.S. and SNOUT*MART sells the toothbrush for $2.50
and the exact same toothbrush can be imported from China at a cost of 20 cents, and SNOUT*MART sells it to you $ 1.00, and it sounds better, right ?

How many jobs were lost ?
How much Tax revenue is lost ?
It snowballs and gets worse, it sets a downward spiral in the Economy for less Economic growth.

Businesses love current profit and gain, regardless of the long term ill effects over the next 50 years.

Frankly, consumers often would rather pay less for foreign made junk, than spend more for U.S. made junk, and in order to remain competitive, the quality of U.S. made products has suffered.

Rather than stupid slogans and memes and party politics, as a Nation, it is important for EVERYONE to work together to improve things, and stop getting side tracked by silly string Politics.

 

"For years, Apple CEO Tim Cook has called on Washington to make it less costly for his company to bring back the billions of dollars it holds overseas".
Just in time for Christmas, Cook finally got his wish.


"As part of the tax bill signed last week by President Trump, corporations like Apple (AAPL) will enjoy a repatriation tax rate of 15.5% for returning money to the U.S. from their overseas cash piles."

http://money.cnn.com/2017/12/27/technology/apple-cash-tax-reform/index.html

 

Under both Kennedy and Reagan tax revenues went up after they raised taxes. As JFK said " a rising tide lifts all ships"

 

Well, you can stop buying Chinese crap NOW and help the US economy.

 

Hmm, you clearly can't comprehend the figures I stated .......

 

Good that you realize that the action of the stock market in the first year of a president has very little to do with that president (sans some extreme event like WW2)

 

Despite increasing revenues Reagan still increased deficits more than any other President since (sans Bush's 2009 fiasco).

A model of fiscal irresponsibility he was.

 

And?

As I said, Apple has paid $38 billion in tax on cash held overseas, because it had no choice.

Your article simply explains that the TCJA softened the blow by taxing that cash at 15.5% instead of 35%, which Cook is obviously pleased about.

There's no requirement for the rest of the cash - some $214 billion - to actually come back to the US. It's simply "deemed" repatriated. Cook can keep it overseas if he likes.

 

I tried, just no tv made in USA.

 

Two different subjects but thank you for admitting Reagan tax cuts led to increased tax revenue. Some in here just are not capable of grasping or admitting that.

 

Tax reform allowed apple to bring billions home and pay a reasonable tax and invest in America again which will provide jobs and more tax revenue. Before the tax bill cook would have kept the money overseas. This is a win for apple and a bigger win for America. "The art of the deal".


"More precisely, Apple said it would pay an estimated $38 billion in tax to bring back to the US some of the cash it has stashed overseas over the years. Apple says the payment would be the largest tax payment of its type in history. But it’s also a pretty good deal for the company.

In the wake of the tax-cut bill approved by Congress last month, Apple also announced plans to invest $30 billion in the US over the next five years, to create 20,000 new jobs, spend more with domestic manufacturers and other suppliers, and build a new campus. But it's not clear how much those numbers represented an increase from Apple’s previous plans, or how much of it will be funded by the repatriated cash.

Apple, which declined to comment, also didn't specify how much money it will repatriate. The company had $252.3 billion in cash and "cash like" assets overseas, according to a filing with the Securities Exchange Commission last year. Under the new tax plan, Apple and other companies must pay taxes on foreign profits parked overseas. Companies aren't required to actually move those funds back to the US, but there's little reason for Apple to keep its cash abroad once it's paid the tax, says Edward Kleinbard of the University of Southern California Gould School of Law.

Previously, the US allowed companies to defer paying taxes on foreign profits until those profits were repatriated. So many companies, including Apple, opted to leave foreign profits overseas. As a result, companies accumulated a total of around $2.8 trillion in overseas holdings, research firm Audit Analytics estimates."

https://www.apple.com/newsroom/2018/01/apple-accelerates-us-investment-and-job-creation/

 

Tax revenue was increasing at a higher rate before the tax cuts - i provided the evidence that you ignored. Tax revenue was increasing at over 9% per year in the four years leading up to the tax cut. After the tax cut, tax revenue was increasing at 4.65% per year in the four years after the tax cut

 

Patience is a virtue, good for you.

 

If that is so, why did Reagan increase the debt by 186% during his tenure?

"Reaganomics didn't work to grow the economy enough to offset tax cuts."

https://www.thebalance.com/us-debt-by-president-by-dollar-and-percent-3306296

 

Here are the facts and the results of tax cuts.

" There was a major recession in 1957-58, one about as severe, in terms of the drop in economic output, as the Great Recession of 2008-9. The 1958 recession was different in that it was nothing new. There had been a recession in 1949-50, another in 1953-54, and there would come another in 1960-61. Four recessions in eleven years—a dubious feat that has happened only twice since World War II. The other time was from 1970-81, the era of stagflation between the eras of the two foremost post-World War II presidents, John F. Kennedy and Ronald Reagan".

"That summer, Kennedy adopted the plan and put the full force of his persuasive powers into getting a big tax-rate cut through Congress. In September 1963, the bill passed the House. It was under consideration by the Senate when Kennedy was assassinated that November. That shocking event moved the Senate and the new president, Lyndon Johnson, alike to push through Kennedy’s bill as a memorial to the slain leader. In February 1964, the Kennedy tax-rate cut won Congressional approval and became law. As Kennedy’s tax-rate-cut, strong dollar economic policy was being articulated and then implemented in the latter half of the presidency, the nation embarked upon an eight-and-a-half year, uninterrupted run of growth at just over 5% per year. Rarely have campaign promises, especially one so bold as to double the long-term rate of economic growth, been so comprehensively fulfilled.

http://time.com/4511870/john-f-kennedy-and-ronald-reagan-tax-policy/