OK this is kind of embarrassing, or is it?

[rick_day]

Comments

[kylinrouge]

It's supply-side economics vs demand-side economics. They incorrectly believe that supply comes first, when demand actually comes first.

[mikeyxw]

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

[kylinrouge]

This is good info. How do you propose we increase the incentive to sell domestically?

[mikeyxw]

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.

[rick_day]

a comercial with Mr. Obama urging Canadians to head south to avoid the VAT

But the Ice OverLords of the Northern Bits would be displeased!