OK, 'splain this to me: A company with a plant in the United States decides that it benefits their bottom line to close it and move production overseas to somewhere with cheaper labor and operating costs. So they hand out pink slips, ship all their equipment to the new overseas site (or sell it off as scrap), turn out the lights, and take a one-time tax write-off for shutting down that factory.
Here's where I get lost....Why are the American taxpayers subsidizing them (through the tax write-off) to ship American jobs overseas? If they want to offshore their operations, that's their business, but why are we taxpayers subsidizing it? The very people who are getting laid off are paying to get laid off!
Am I understanding this right?
Why can't Congress just re-write the tax code to disallow this subsidy? If you close a US plant, you don't get a write-off. If you open a US facility, you get a subsidy. You reward creating US jobs, not sending them away.
Oh, wait....the businesses that are benefiting from the offshoring write-offs are the same ones who are contributing BIG $$$$$ to Congress to say "thanks" for their....umm...."understanding" in these tough times. *atta boy, Congress....way to represent your constituents*
Now that I think about it, I guess I do understand.
Nevermind.
S
I like how you came to your senses in the end. Wouldn't it be nice if Congress could come to its senses too?
ReplyDeleteYou know if you did that kind of change to the code there would be no more business. Business simply goes where it is wanted and stays where it is welcome. I don't like it but this tax code thing goes back to the "defense" speech I had written earlier.
ReplyDeleteEffective tax rates on profitable companies are horrendous. Make no mistake the gov't is interested in your business and if you think you can make it work they will tax you for being successful wherever you go....
A "quality" problem to say the least.
My hope is that you pay a billion dollars in taxes S. That way I can be certain you made a few more bucks than the tax you owe...
I'll even let you buy the beer with plain old pocket change my brother...
Cheers,
Bobby
"Business simply goes where it is wanted and stays where it is welcome."
ReplyDeleteI'm lost again Bobby. How would offering a subsidy (it happens all the time on the local level with tax abatements) kill off business? How much more welcoming can you get?
Deal! With my first billion I'll take you on the road trip of a lifetime! ;)
S
Well, see, you've hit upon the major problem with our political system, the ability for elected officials to "reward" people who contribute big bucks to their campaigns. The answer to the problem? Limit the power they possess to reward anyone, and that doesn't mean just the tax breaks, but also the subsidies. My two cents, anyway, and probably worth that much, too!
ReplyDeleteYou understand perfectly, and this type of subsidy needs to stop.
ReplyDeleteThere you go again, making sence while everyone else is making cents.
ReplyDeleteThats it exactly my Friend, I agree that the credits should be given to plants opening here in the US, so many of our people have been put out of work so that we can buy cheaper t-shirts made overseas rather than higher priced ones made right here.
ReplyDeleteI'm all for paying more for a t-shirt because I have a job and can afford to do so rather than be out of work and not able to afford the imported one--sigh