Should the US create a tax for companies that go overseas?

2016-07-16T15:46:36-04:00

Donald Trump wants to create a tax on nations that go overseas forcing them back into the US to do business. Doesn't this violate out status as a free nation? Business leaders have the right to do business anyway they see fit we are a free country. My second question would be with companies now back in the US would the cost of everything increase since our production and wages are higher?

Response by SSgt Private RallyPoint Member made Jul 16 at 2016 3:47 PM

2016-07-16T15:47:32-04:00

There comes a time when the losses are not justifiable

Response by PO1 Private RallyPoint Member made Jul 16 at 2016 4:37 PM

2016-07-16T16:37:49-04:00

Free market solutions will incentivize businesses to stay. It's really that simple. No need to create another tax.

Response by MSG Private RallyPoint Member made Jul 16 at 2016 4:38 PM

2016-07-16T16:38:21-04:00

i think you meant companies not nations

Response by SSG Gerhard S. made Jul 16 at 2016 5:29 PM

2016-07-16T17:29:30-04:00

SPC Private RallyPoint Member great observations. Creating even MORE penalties on companies that move overseas will not prevent them from doing so, and WILL have the effect of raising prices for American consumers if they are forced to stay here, and likely some corporate failures as well.

It makes great sense in a political sense to pretend to do something about corporations leaving by punishing them for doing so. Unfortunately it makes NO economic sense to do so, for the reasons listed in the previous paragraph.

It would make much more sense to ENCOURAGE corporations to stay here in the us by streamlining our ridiculous tangle of, often contradictory, regulations, and to eliminate the corporate income tax. (and all other income taxes as well.... see http://www.fairtax.org ) Eliminating the corporate income tax alone would reduce the cost of doing business in America by approx. 23% in saved corporate taxes, tax compliance accountants, and attorneys, and unnecessary capital purchases made for the purpose of reducing tax liabilities. This would also have the benefit of encouraging foreign corporations to move HERE, and to allow American corporations to bring back to America, their trillions of dollars currently parked overseas.

We don't have to punish corporations for leaving... that is the political answer, that only benefits the politicians by making them look like they're doing something. Making it easier, and cheaper to do business HERE is the economic answer that benefits both corporations, and consumers with more jobs, lower prices, and a more stable business and manufacturing environment.

Pass the FAIRtax | FAIRtax.org

FAIRtax.org | Pass the FAIRtax

Response by CPT Jack Durish made Jul 16 at 2016 6:32 PM

2016-07-16T18:32:51-04:00

Trump advocates a strange hodge-podge of free market and controlled market strategies. Methinks he is learning to be a politician, saying what the audience wants to hear. He reminds me of one of my favorite Monty Python sketches https://www.youtube.com/watch?v=AGrvQ1c5khU

Nudge Nudge - Monty Python's Flying Circus

Subscribe to the Official Monty Python Channel here - http://smarturl.it/SubscribeToPython “Nudge Nudge” features Eric Idle (playing a younger man) and Terry...

Response by Capt Chris McVeigh made Jul 16 at 2016 7:06 PM

2016-07-16T19:06:43-04:00

Sounds like a different take on protectionist tariffs. The issue for businesses would be that tariffs artificially allow them to be competitive against international businesses, whereas this would leave them with greater expenses and no increase to profit. Doesn't sound like a very well thought out idea.

Response by SPC Private RallyPoint Member made Jul 16 at 2016 7:10 PM

2016-07-16T19:10:58-04:00

I don't see it as violating rights. Now this is my opinion and how look at it is... if you want to take your business and .I've it to another country to save money on labor that fine but expect to pay the higher taxes on importation of your cheap made product because you took away many jobs in the U.S. so now we have to pay out for unemployment and food stamps and all the gov. Assistance for these people until the can get back on there feet

Response by SSG Private RallyPoint Member made Jul 17 at 2016 3:51 AM

2016-07-17T03:51:26-04:00

Tax all imports! US companies can't compete with Nations that don't have minimum wage requirements or the same amount of red tape and regulations.

Response by GySgt Private RallyPoint Member made Jul 17 at 2016 11:26 AM

2016-07-17T11:26:15-04:00

It may bring companies back but they will cut staff and not be able to compete with overseas companies. Instead of focusing on the sexy things that give awesome sound bites, they need to revamp the entire tax system to make it easy and fair. Somehow if I use the rules and laws to my benefit, I am considered to not be paying my fair share. If the tax laws weren't so confusing we wouldn't need tax preparers for the average person. I think the flat tax is fair share and I am not a rich person by any stretch of the imagination.
It is funny to me how ignorant people are about taxes. Since the government is not decreasing their programs or budgets, what happens when gas prices go down; what happens when a water shortage (California) causes a state to inact water usage restrictions? Just think, what if communities went off the grid and went "green", the government would lose revenue and have to recoup that from somewhere. Taxes are a necessary evil but it should be fair and fair is not those who have more should pay more unless it is the same percentage as everyone else. Sorry for going down a slightly different rabbit hole.

Response by Cpl Private RallyPoint Member made Jul 17 at 2016 11:55 AM

2016-07-17T11:55:49-04:00

Here's a question: If a company makes a product that sells well overseas and the population of those countries is greater than that of the US, would it be more feasible to move to one of those countries?

Taxing a company that may not have market share in the US is the wrong path. Lowering taxes and reducing regulations is what will keep companies from leaving. Carrier actually stated that they were leaving to due to burdensome epa regulations. Would people rather pay more for their products or keep the price of their products competitive?

If they can manufacture the same products cheaper in other countries due to less restrictive compliance while keeping the consumer cost down, I'm all for it. Or would we rather they stay after getting hit with more regulatory compliance costs and compulsory wage increases which drives up the cost of their goods and services while competing with companies who are already manufacturing in other countries.

Response by SrA Roy Cooper made Jul 17 at 2016 2:27 PM

2016-07-17T14:27:10-04:00

To answerve the first question, they should have been taxing companies that go out of the country for decades. The second part of your question, let's use a DVD player for an example. XYZ Company has a US Company to make 10% of the parts, China make the 90% of the parts, Japan assemble the DVD Player together, Mexico to pack them for sale, and sales them in Wal*Mart for $395.99. Well, guess what. Because 10% of the parts are from the US. That gives them the right to stamp "Made in USA" on it and the box it came in. Then that DVD Player you just paid $395.99 plus tax only cost that company from start to finish about $100.00 if that much.

Response by CSM Charles Hayden made Jul 20 at 2016 1:28 AM

2016-07-20T01:28:24-04:00

SPC Private RallyPoint Member No, the US does not need a tax to deter corporations from moving their headquarters overseas. We need to remove the double taxation from corporations that would like to repatriate their overseas profits to the US!