Quote:
Originally Posted by Blackbird45
This is correct that even if you purchase something that's labeled made in America, most of the components are made in any country that has a cheap labor force. This problem has been created by all of us, we want inexpensive products and companies that want to survive have to follow their competition. I believe the solution is to give tax incentives to the American consumer as they are doing with electric cars for all big-ticket items. Following is what I believe would work.
Step one, congress has to decide what constitutes an American corporation and an American produce. Let’s put the threshold at 80%. If 80% of all employees of a corporation are employed within the U.S. borders it will be consider an American corporation. If 80% of the labor and parts of an item are produced in the United States, it will consider an American product. Next you target the tax incentive to the consumer not the companies.
Examples:
If Ford meets the threshold and you invest in Ford you will not have to pay capital gains tax or tax on dividends. Incentivizing all companies to reach the 80% goal to attract your investment, this bringing work back to our shores.
Let’s stay with Ford. You are planning to purchase a car and are looking at a Ford and similar car by Hyundia. The Ford car you're looking at does not meet the 80%, but the Hyundia does, the emblem’s origin does not matter. The target is to put Americans to work. The consumer will receive a tax break equivalent to what is offered today for electric cars giving Hyundia the upper hand.
These tax incentives will be offset by the increase of employment.
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Again if you give the American consumer an incentive to buy American made products they will do so. I am not suggesting shutting our borders to foreign products, what I'm suggesting is to give American an equal financial playing field. This country was once a manufacturing giant. That now has shifted to a purchase and investment giant and we should use that tool in our favor.