Trump abandons campaign promise to penalize outsourcing, offers tax breaks instead

[applegrove]

Trump abandons campaign promise to penalize outsourcing, offers tax breaks instead

by Bryce Covert at Think Progress

https://thinkprogress.org/trump-carrier-jobs-913348bbf46#.rbj2q8uan

"SNIP............


Both Carrier and the Trump administration have confirmed that the two sides are in talks, and according to sources at the New York Times and Wall Street Journal, the negotiations are a two-way street, with both the company and administration officials discussing concessions. In order for Carrier to keep jobs in the U.S., the Trump administration has discussed relaxing business regulations and backing away from campaign pledges to impose tariffs on companies that move jobs abroad, according to the Times.

The other concession under discussion, according to the Journal, is indulging the company’s desire for favorable changes to the tax code. One particular offer could be a tax holiday on overseas profits, given that United Technologies held 85 percent of its total cash, coming to more than $6 billion, overseas as of the end of last year.

Currently, U.S. corporations can indefinitely delay paying American taxes on money made abroad by keeping it abroad, but Trump has pledged to give U.S. corporations a one-time 10 percent tax rate on overseas profits as a way of enticing them to bring the money back. Evidence from past attempts at this very strategy, however, showed that companies simply used the break to bring their money back and give it to wealthy investors, rather than investing it in American jobs or the economy. The same thing is likely to happen this time around.

Another incentive for Carrier to keep jobs in the country could be an overall lower corporate tax rate. Trump has already proposed more than cutting the rate in half, lowering it from its current level of 35 percent to 15 percent.


.............SNIP"

[applegrove]

1. They did the deal. Another promise broken.

[ReformedGOPer]

2. Liar liar pants on fire.

[wordpix]

3. more raping of America. Should not be allowed to happen

What can I do? I'm getting old and I've done these fights so many times in different ways. This is the worst shape the country's been in my lifetime since the Vietnam War/Bring the War Home.

As my friend says, the primitive brain has taken over the Trumpsters.

[Barack_America]

4. Jobs held hostage by corporate terrorists, Trump caves and pays the ransom.

[applegrove]

5. Why wouldn't other corporations fake a move to Mexico to get the same deal. Why

there is a system of laws and regulations...so corporations can't game the system. But Trump doesn't know that. Cause he doesn't understand systems.