Quote:
Originally Posted by bob
So here's my problem with this kind of thinking given this era of globalization (btw, I certainly don't like the idea of offshoring jobs):
What's an American firm? A company with headquarters in the US? A company that makes products entirely in the US? How do you define that. Start taxing the hell out of firms and they will "move" entirely outside of the US.
People can't have it both ways - you can't bitch and moan about companies going overseas because of cost cutting ways and then buy stuff made overseas at Walmart b/c that's the cheapest price available. And if you are restricted from competing by moving jobs overseas b/c of punitive taxes, American firms will be at a huge cost disadvantage in the global marketplace and will all go belly up.
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I don't understand this argument some of these arguments again US protectionism.
1) It's not as if those firms are being taxed horribly as it is. Yes, the percentage is high. However, with lots of corporate loopholes, the corporate taxes in this country aren't nearly as high as they are being made out to be. When you can deduct all levels of crap- I imagine that with a good tax lawyer, corporations are paying much less than they would in other countries. Or they are at least competitive because it's not as if these companies are staying here just for name's sake. If they could save a buck and move to, say, the Cayman Islands for a corporate account, they would have already.
2) A lot of companies could only exist in this country. It's not as if you could open up a Starbucks in China and charge $5 a cup of coffee when their middle class makes barely $10K per year.
3) I do strongly agree with the first part of the final sentiment- people love to complain about service or selection and then go for the cheapest price. Search my history and I'm sure I've used my Ultimate Electronics/Best Buy analogy a couple of times. However, I disagree with the second- see my second point. Look at what Microsoft or most major pharmaceutical companies do- they sell at one price here and then substantially less in other places.
SI