General Discussion
In reply to the discussion: I would like to have a series of substantive discussions on ... [View all]metalbot
(1,058 posts)We don't reward companies for moving jobs overseas. If you own a lumber mill, there's no tax reward for "moving jobs overseas". Let's think of this in term of GE. GE sells lots of stuff in Latin America. They earn lots of money doing this. The US government gives them a choice: move the profits on shore, and pay full corporate income tax on the money you earned selling microwaves in Brazil, or take the money you earned selling microwaves in Brazil and spend that money opening factories in Brazil, and on top of that, import those microwaves to the US. Their annual report, which you can read, explicitly states (paraphrasing): "We've got a bunch of money, but if we move it into the US, we'll pay big tax penalties, so we're investing overseas".
While I've seen many posts on DU about "penalize companies that move jobs overseas", I've seen almost no posts supporting the notion of "incentivize companies to create jobs in the US through tax policies".
Seriously. If there's some easy way to wave a magic wand that says "create jobs in America", I'm all ears. But when you make your proposal, please explain why "American" companies wouldn't flee the US, and how we'd distinguish "American" companies from European companies that want the same thing (but might escape US taxes by being based in Slovakia).
What's the specific proposal? How would you write the tax law that achieves what you want? Keep in mind that whatever proposal you come up with is going to be analyzed by an army of attorneys and accountants. What specific thing are you proposing that will keep labor inside the US?