NYT - Tax Law May Send Factories and Jobs Abroad

[TomCADem]

Though this sort of ignores that the main reason why people voted for Trump is that he validated their fears of minorities, empowered women, immigrants and religious minorities.

https://www.msn.com/en-us/news/us/tax-law-may-send-factories-and-jobs-abroad-critics-say/ar-BBI77KY?li=BBnb7Kz

In Indiana, Missouri and Pennsylvania, President Trump used the same promise to sell the tax bill: It would bring jobs streaming back to struggling cities and towns.

“Factories will be pouring into this country,” Mr. Trump told a crowd in St. Charles, Mo., in November. “The tax cut will mean more companies moving to America, staying in America and hiring American workers right here.” The bill that Mr. Trump signed, however, could actually make it attractive for companies to put more assembly lines on foreign soil.

Under the new law, income made by American companies’ overseas subsidiaries will face United States taxes that are half the rate applied to their domestic income, 10.5 percent compared with the new top corporate rate of 21 percent.

“It’s sort of an America-last tax policy,” said Kimberly Clausing, an economist at Reed College in Portland, Ore., who studies tax policy. “We are basically saying that if you earn in the U.S., you pay X, and if you earn abroad, you pay X divided by two.”