The link to US jobs is really BS. The tax break in question is the one that exempts US companies from paying taxes on their profits from overseas operations until they repatriate the money. This has nothing to do with where the stuff is made, so these aren't "tax breaks" on stuff built in factories which have moved to China or Mexico or other places but "tax breaks" on stuff sold in China or Mexico or other places. If Lucient Technologies builds some stuff in California that is sold in Mexico, they will get this "tax break" until the money is brought back to the US even if they don't have any manufacturing facilities in Mexico. If GM builds a factory in China and sells those cars in the US, the money is earned by the US subsidiary and therefore this "tax break" doesn't apply. This has to do with where stuff is sold, not where it's made.
If this exemption goes away, it will very likely impact the overseas sales by US companies and their subsidiaries, they will either have to raise their prices or lower their profits. Neither will translate into increasing domestic employment. It would raise some revenue but it would make US companies less competitive internationally. My take is that this is something the democrats really aren't in favor of this change. It seems to come up a few months before every presidential election as another way to beat up the other side.
Get Americans to consume more and therefore buy more domestically. I guess we could also try to market to Canadians, a comercial with Mr. Obama urging Canadians to head south to avoid the VAT and take advantage of the weak USD might work.
If this exemption goes away, it will very likely impact the overseas sales by US companies and their subsidiaries, they will either have to raise their prices or lower their profits. Neither will translate into increasing domestic employment. It would raise some revenue but it would make US companies less competitive internationally. My take is that this is something the democrats really aren't in favor of this change. It seems to come up a few months before every presidential election as another way to beat up the other side.
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But the Ice OverLords of the Northern Bits would be displeased!
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