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Originally Posted by Guest
A company making significant profits in a foreign country is not going to move back to the USA just to pay less taxes -their labor costs are less overseas, their factories are overseas...why pay to move? Do you think Ivanka and Trump will move their factories away from China, Mexico, and Indonesia where they pay workers $62 a week?
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That certainly might be true with some companies, but we've already had several companies state that they will now be investing money in opening facilities here instead of going overseas.
Payroll is one cost of doing business, but locating managers, supervisors and other personnel in a foreign country is also very expensive. Then as has been mentioned there is the cost of transporting products from halfway around the world back here to be sold.
Maybe companies won't be moving overseas facilities back here right away, but there's more incentive if they intend to open new facilities, to open them here now. We had the highest corporate tax rate in the world. It made it very difficult for companies to do business here.
I think that some of Trump's companies might come back here if they see that they can make more or the same profit. Why would a company want to go through the hassle of operating a business in a third world country if it was no more profitable?
Sixty-Two dollars a week in some countries is a livable wage by the way. There are millions of people in the world who would love to make $62 a week.