Tax law may send factories and jobs abroad

Tax law may send factories and jobs abroad

Postby Supposn » Wed Jan 10, 2018 10:46 pm

Annual trade deficits are always detrimental to their nation's GDPs and thus, to their numbers of jobs.
The trade policy described with Wikipedia's “Import Certificates” reduces, (if not eliminates) its nation's trade deficit of goods. If the policy were to be adopted by the USA, it would increase our GDP and numbers of jobs more than otherwise. It's conceivably as close as possible to be “bulletproof”; (i.e. immune from mischief).

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Excerpted from:
https://www.nytimes.com/2018/01/08/b...e=sectionfront

Tax law may send factories and jobs abroad

Under the new law, income made by American companies’ overseas subsidiaries will face United States taxes that are half the rate applied to their domestic income, 10.5 percent compared with the new top corporate rate of 21 percent.
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Re: Tax law may send factories and jobs abroad

Postby Kane » Thu Jan 11, 2018 1:33 am

Unemployment is already pretty low and yet our deficit...is not. How do you square that with the last decade?
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Re: Tax law may send factories and jobs abroad

Postby Saz » Thu Jan 11, 2018 12:23 pm

Supposn wrote:Annual trade deficits are always detrimental to their nation's GDPs and thus, to their numbers of jobs.

Jesus f**k christ this is simply not true, as an economic matter. We can debate the utility and consequences of running long term trade deficits but on an annual basis a trade deficit, even a sever one, is not necessarily detrimental to a nation's GDP.

The trade policy described with Wikipedia's “Import Certificates” reduces, (if not eliminates) its nation's trade deficit of goods. If the policy were to be adopted by the USA, it would increase our GDP and numbers of jobs more than otherwise. It's conceivably as close as possible to be “bulletproof”; (i.e. immune from mischief).

It's based on a flawed premise. trade deficits can enhance both short and long term GDP.

Supposn wrote:Under the new law, income made by American companies’ overseas subsidiaries will face United States taxes that are half the rate applied to their domestic income, 10.5 percent compared with the new top corporate rate of 21 percent.


Yes but cutting the corporate rate presents an immense number of opportunities here as well. I also believe that exclusion is capped at 10% so there is a limit and corps will want to use the room within that limit wisely.
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