Posted on Jul 16, 2016
Should the US create a tax for companies that go overseas?
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Donald Trump wants to create a tax on nations that go overseas forcing them back into the US to do business. Doesn't this violate out status as a free nation? Business leaders have the right to do business anyway they see fit we are a free country. My second question would be with companies now back in the US would the cost of everything increase since our production and wages are higher?
Posted >1 y ago
Responses: 12
Free market solutions will incentivize businesses to stay. It's really that simple. No need to create another tax.
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SPC (Join to see) great observations. Creating even MORE penalties on companies that move overseas will not prevent them from doing so, and WILL have the effect of raising prices for American consumers if they are forced to stay here, and likely some corporate failures as well.
It makes great sense in a political sense to pretend to do something about corporations leaving by punishing them for doing so. Unfortunately it makes NO economic sense to do so, for the reasons listed in the previous paragraph.
It would make much more sense to ENCOURAGE corporations to stay here in the us by streamlining our ridiculous tangle of, often contradictory, regulations, and to eliminate the corporate income tax. (and all other income taxes as well.... see http://www.fairtax.org ) Eliminating the corporate income tax alone would reduce the cost of doing business in America by approx. 23% in saved corporate taxes, tax compliance accountants, and attorneys, and unnecessary capital purchases made for the purpose of reducing tax liabilities. This would also have the benefit of encouraging foreign corporations to move HERE, and to allow American corporations to bring back to America, their trillions of dollars currently parked overseas.
We don't have to punish corporations for leaving... that is the political answer, that only benefits the politicians by making them look like they're doing something. Making it easier, and cheaper to do business HERE is the economic answer that benefits both corporations, and consumers with more jobs, lower prices, and a more stable business and manufacturing environment.
It makes great sense in a political sense to pretend to do something about corporations leaving by punishing them for doing so. Unfortunately it makes NO economic sense to do so, for the reasons listed in the previous paragraph.
It would make much more sense to ENCOURAGE corporations to stay here in the us by streamlining our ridiculous tangle of, often contradictory, regulations, and to eliminate the corporate income tax. (and all other income taxes as well.... see http://www.fairtax.org ) Eliminating the corporate income tax alone would reduce the cost of doing business in America by approx. 23% in saved corporate taxes, tax compliance accountants, and attorneys, and unnecessary capital purchases made for the purpose of reducing tax liabilities. This would also have the benefit of encouraging foreign corporations to move HERE, and to allow American corporations to bring back to America, their trillions of dollars currently parked overseas.
We don't have to punish corporations for leaving... that is the political answer, that only benefits the politicians by making them look like they're doing something. Making it easier, and cheaper to do business HERE is the economic answer that benefits both corporations, and consumers with more jobs, lower prices, and a more stable business and manufacturing environment.
Pass the FAIRtax | FAIRtax.org
FAIRtax.org | Pass the FAIRtax
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SSG Gerhard S.
I didn't suggest we eliminate taxes, only that we eliminate income taxes, corporate, and individual as well. The Fair Tax addresses how this can be done by the implementation of a National retail Sales tax. Again... http://www.fairtax.org
Pass the FAIRtax | FAIRtax.org
FAIRtax.org | Pass the FAIRtax
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