Tax Reform?

[Jil]

@sheriff

American made goods will never be cheaper than asian made goods because of the difference in labor costs, so you are over estimatiing the effect of corporate tax cuts.

As for individual tax cuts it won’t make much difference to me since I am retired and low income, I expect to make no tax payments anyway.

The thing that will affect me the most is if they get rid of the mandate for individual insurance my wife’s insurance rates under obamacare will increase dramatically for the next 8 years.

@Roy321

The corporate tax rates in USA is high, but not as high as it is claimed.

I mixed two threads here into one, asnwering Sheriff and Roy321.

First, Roy321 statement ( corporate tax rates in USA is high) is valid and every one knows.

Sheriff’s bold highlighted are correct, USA manufacturing shift will be very slow or there is no major change.

The basic fact is “If something is cheaper to make it China or elsewhere”, companies are buying same like individual.

Here, I provide the same example of Apple. Iphone price is appx $250 at china, sold here for $1000. But, Apple Ireland has manufacturing unit which signs a contract for $250 with Chinese company and exports to USA at $750 making $500 profit

This intermediate manufacturing unit is paying corporate tax rate at 17.5% to 22.5% rate. This is completely legal and these are tax haven opportunities.

I am just showing apple example as this is well known case known to all Senators, House of Reps and every president ! There have been many instances, Tim Cook or Steve Jobs were grilled by the Senate/House committee.

Like this many big corps are hoarding cash abroad to the tune of 4.5 Trillions to 8 Trillions. Day by Day, many corporate are going for intermediate tax havens like the way manufacturing moved to China.

Such practices will be stopped going forward, as they feel USA itself a tax haven state, and corp money will flow back to USA. No company is going to keep the cash idle, but will make use of it to grow further. This will add long term benefit to country economy and kill the tax havens abroad.

Unfortunately, no individuals will realize the impact to USA economy as this is not direct benefit to them. There may be chances that our economy may go through recession in between, but we will see companies coming back to USA. If the tax is reduced, we will all see the growth when Trump leaves White House.

This is almost the same way no one understands “What obama made last 8 years” to recover the economy from brink.

In future, Trump will be criticized the same way people criticize Obama, but both are Strong, Adamant, Dedicated and having long term vision about America. US Citizens are lucky to have such contrasting personalities to lead from two different parties.