stormymonday_2011 Posted February 4, 2017 Share Posted February 4, 2017 (edited) I am not sure whether this has been posted yet U.S. companies including major exporters General Electric Co (GE.N) and Boeing Co (BA.N) launched a coalition on Thursday to back a House Republican plan to tax all imports, saying the proposal would "support American jobs and American-made products." The group, comprised of more than 25 U.S. companies and dubbed the "American Made Coalition," also includes Dow Chemical Co (DOW.N), Eli Lilly and Co (LLY.N), Pfizer Inc (PFE.N), and Oracle Corp, the companies confirmed. The group's launch underscored a growing division in corporate America over the House Republican proposal that would cut corporate income tax to 20 percent from 35 percent, exclude export revenue from taxable income and impose the 20 percent tax on imports http://uk.reuters.com/article/us-usa-trump-companies-tax-idUKKBN15H2VV?type=companyNews It would appear that rather than selective tariffs as mooted by Trump some corporations want a general tariff allied to a cut in Corporation Tax I wonder how Trumps Democrat opponents are going to play this issue. Are they really going to bat at the plate for the likes of Walmart ? It also an area where Republican politicians might end up tying themselves in knots One to watch Edited February 5, 2017 by stormymonday_2011 Quote Link to comment Share on other sites More sharing options...
nothernsoul Posted February 4, 2017 Share Posted February 4, 2017 Trump's administration is ripping apart the last vestages of the New Deal. Rampant crony capitalism with some populist scraps on the side to keep the voter base happy. Quote Link to comment Share on other sites More sharing options...
stormymonday_2011 Posted February 5, 2017 Author Share Posted February 5, 2017 (edited) 1 hour ago, nothernsoul said: Trump's administration is ripping apart the last vestages of the New Deal. Rampant crony capitalism with some populist scraps on the side to keep the voter base happy. This proposal is not coming from the Trump administration. It is being made by these companies direct to the legislature in the form of the House of Representatives in Congress. I think the point to note is that what is being suggested is not a general border tariff on the lines of Smoot-Hawley or even a targeted set of tariffs as Trump was suggesting but a general change in the way corporation tax reliefs are granted to businesses. Under the proposal the cost of production or services for the domestic market or for export would attract corporation tax reliefs while imported goods would not get them. In effect companies trading in the U.S. that built their business using import substitution for domestic production would pay a higher rate of corporation tax on their profits than those that used domestically made goods and services. I think this would actually be legal under GATT. Anyway it looks as though some corporations are buying into the idea that the U.S. industrial sector has been hollowed out too much. These companies have thrown down a challenge to the politicians of both parties to see if they are really serious about reviving US manufacturing. As an issue this is way more important than the current arguments about restricting travel and immigration visas which incidentally only impacts about 100,000 of the 11,000,000 visas that the U.S. issues each year. Edited February 5, 2017 by stormymonday_2011 Quote Link to comment Share on other sites More sharing options...
Peter Hun Posted February 5, 2017 Share Posted February 5, 2017 Very interesting but completely off topic Quote Link to comment Share on other sites More sharing options...
Futuroid Posted February 5, 2017 Share Posted February 5, 2017 8 hours ago, stormymonday_2011 said: It is being made by these companies direct to the legislature in the form of the House of Representatives in Congress. The best policies for the ordinary American always come from giant trans-global corporations. Always. Quote Link to comment Share on other sites More sharing options...
frederico Posted February 5, 2017 Share Posted February 5, 2017 Yes, the corporations just want to make money, maybe Trump has said if you want government orders support this policy. In reality this sort of thing is the only way for the west to compete in manufacturing. Unless you want your workers to live in slums and have no healthcare. China for example controls it's currency and subsidises all sorts of industry, it is not a fair market. Imagine football game where the referee plays for the opposition. Quote Link to comment Share on other sites More sharing options...
Futuroid Posted February 5, 2017 Share Posted February 5, 2017 16 minutes ago, frederico said: Yes, the corporations just want to make money, maybe Trump has said if you want government orders support this policy. In reality this sort of thing is the only way for the west to compete in manufacturing. Unless you want your workers to live in slums and have no healthcare. China for example controls it's currency and subsidises all sorts of industry, it is not a fair market. Imagine football game where the referee plays for the opposition. Do you think the fact that most factories are being heavily automated has anything to do with big companies being happy to bring things back inside their own borders? Maybe you don't want your workers to live in slums, but you're aren't all that fussed about your non-workers. You probably only care if they have healthcare if you are Pfizer. Quote Link to comment Share on other sites More sharing options...
frederico Posted February 5, 2017 Share Posted February 5, 2017 No, corporations care about orders and profit. Quote Link to comment Share on other sites More sharing options...
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