China - Tax breaks to attract Business - America Tax breaks to Outsourse Jobs

[FreakinDJ]

American Manufacturing has turned into a Loose Loose scenario for corporations and the 3 million workers who used to earn their bread and butter churning out 1000s of products that once made up a majority of America's GDP. Bad enough Middle Class Americans have to compete against $4 a day labor, 15 years of Lopsided Free Trade deals that have netted a 10:1 tariff imbalance between China and the USA.

The Numerous Corporate "Tax Incentives" for outsourcing American Manufacturing jobs has been met by a "Beach-Head" of Tax Incentives in China designed to attract America's once thriving manufacturing sector to their shores.

Firms in the manufacturing sector can be exempt from paying any tax whatsoever for the first two years of making an operating profit and a 50% reduction in the standard tax rate for three years thereafter. In addition, there are a host of other tax benefits to foreign firms including a base rate of 15% to manufacturers in designated Economic and Technological Development Zones or businesses in Special Economic Zones. There are further tax rates of 24% available to productive FIEs located in the various development zones and cities, dependent on the location of the project.

Additional tax breaks can be made available to FIEs if they chose to reinvest their share of profit, capital reserve, or enterprise and development and expansion reserve. Rebates of up to 40% are possible provided that the aforementioned assets are reinvested for a period of five years or more, although this is conditional on the reinvestment being channelled into increasing existing capital stock or into another FIE. Alternatively, if the profits are reinvested into an export-oriented industry or a technologically advanced industry then the firm is entitled to receive a rebate on the tax already paid on the profit share that has been reinvested.
http://www.chinaorbit.com/china-economy/corporate-tax-china.html

Global Competition is fine for the American worker, (some of the most productive workers in the world) but this is not competition, nor Free Trade, nor the Capitalism Model Wall St was built upon. This is a "Surrender" plain and simple without even the threat of armed conflict, or financial take over. Surely, you would think no House or Senate legislators can look at America's unemployed and suggest we need "Additional Corporate Tax Breaks" to keep American Corporations competitive. We need "American Corporate Tax Sanity" to keep American Jobs right here at home.

Ask yourself 1 Question -

Would Americans Support Closing the Tax Loopholes that Outsource American Jobs. Then ask yourself why during all the "White Knuckling, Hyper-Hysterical" Media Reporting of the Debt / Deficit / Credit Down Grade have we not heard about the Senate Attempts to close the numerous "Corporate Tax Loopholes" that Outsource American Jobs.

Summary of the Stop Tax Haven Abuse Act of 2011

Targeting $100 billion in lost revenue each year from offshore tax dodges, the bill would:

AUTHORIZE SPECIAL MEASURES TO STOP OFFSHORE TAX ABUSE (§101) by allowing Treasury to take specified steps against foreign jurisdictions or financial institutions that impede U.S. tax enforcement.

STRENGTHEN FATCA (§102) by clarifying under the Foreign Account Tax Compliance Act when foreign financial institutions and U.S. persons must report foreign financial accounts to the IRS.

ESTABLISH REBUTTABLE PRESUMPTIONS TO COMBAT OFFSHORE SECRECY (§102) in U.S. tax and securities law enforcement proceedings by treating non-publicly traded offshore entities as controlled by the U.S. taxpayer who formed them, sent them assets, received assets from them, or benefited from them when those entities have accounts or assets in non-FATCA institutions, unless the taxpayer proves otherwise.

STOP COMPANIES RUN FROM THE UNITED STATES CLAIMING FOREIGN STATUS (§103) by treating foreign corporations that are publicly traded or have gross assets of $50 million or more and whose management and control occur primarily in the United States as U.S. domestic corporations for income tax purposes.

http://levin.senate.gov/newsroom/press/release/summary-of-the-stop-tax-haven-abuse-act-of-2011/?section=alltypes

You may now return to your normal gnashing of teeth and Obama Bashing. This has been your daily reminder "the Jobs have Left the Country"

[bbgrunt]

1. "American Manufacturing has turned into a Loose Loose scenario"

excuse my pedantic interference, but your argument would be stronger if you made that a "Lose-Lose scenario".