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Tax rates have a lot to do with the location of manufacturing; highly automated manufacturing can really minimize the impact of labor rates, and operating costs
by nickff 5y ago
Tax rates have a lot to do with the location of manufacturing; highly automated manufacturing can really minimize the impact of labor rates, and operating costs are frequently lower in the USA. One of the best recent changes made to the tax code was to allow for 100% depreciation of some capital expenditures within one year; reducing corporate tax rates would have the impact of extending this effect.
- imglorp 5y agoA global would also reduce the incentive. If it's the same all over, might as well stay home. https://www.washingtonpost.com/us-policy/2021/06/05/g7-tax-us-yellen/ https://www.washingtonpost.com/us-policy/2021/06/05/g7-tax-u...
- deleted 5y ago[deleted]
- an_opabinia 5y agoA few products, like GPUs, already have a 25% tariff added to them. Consumers bore 100% of the costs. Nothing changed. They are still being made in China for the foreseeable future.
- ineedasername 5y agoAre costs like rent & utilities and construction of facilities really much more expensive elsewhere? I can't imagine that a lot of automobile manufacturing would move to Mexico if it cost more to operate. Unless you mean the labor savings more than offset other cost increases? I completely agree on capex, but changes there mean literally nothing for large multinationals that already pay close to zero taxes already. For me though, running a (very small) business on the side, I took advantage of that myself to make a few big ticket purchases (relative to the scale of the business)