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"you can still be a conservative and recognize that the current corporate tax laws are insane. Intel can build a plant in China, using equipment purchased in Japan and South Korea, and get a US tax writeoff for it."
That doesn't seem fair that my tax dollar should pay a company to do all its business overseas. There are several more posts and finally someone who thinks it is bad says why:
"Because under the model mentioned above, its not at all subsidizing. Under those circumstances, lets map out how it works:
Private investors give money to Intel, whether its banks or whoever.
They put a factory in Japan and sell products to Japanese, Korea, and Taiwanese consumers.
The profits are sent back home. Because of the economic situation overseas profits there are about 10 notches below US profits. In order to make them more profitable we have to lower the taxes. Investment is not a zero sum game. There isn't a limited number of dollars to be invested. There is however a limited number of consumers.
Its essentially tapping into a market that otherwise doesn't exist for us. We are rounding up foreign money and actually bringing it back home. In the end you employ more Americans under that scenario.
Under that model we are not nessarily buying from Japan and selling in America...
I understand what you are trying to accomplish, and I agree with the goal, but this is a bad way to do it.
Tax breaks like that though cannot be all lumped in together. Companies all have different models. Some should be rewarded but others should not.
For companies that ultimately ignore the demand in their host country (like China) and want to supplant our production for theirs...thats a different story."
He says it isn't subsidy, but what else could you call it? They don't pay higher taxes when they go overseas for lower wages, why should they pay lower taxes because the same market has lower prices.
It doesn't sound at all like free trade. If it is not as profitable to manufacture over there and sell over there, then either expect lower profits or don't do it. Don't make me pay for it twice, once by taking "my" job away and having it done in another country and second by taxing me on the company's profits.
I don't see how putting more profit into Intel is going to create American jobs. Intel is still going to send its manufacturing to China and its programming to India. It may create more Chinese and Indian jobs with my tax dollar, but if I am going to make up the difference in the taxes they don't pay, I want to see American jobs.
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