Corporate Tax Code Realignment

[hootinholler]

Folks, we need to change the tax structure of corporations in the US to encourage job creation here and punish hoarding and offshoring.

I'm proposing that we tax corporate profit at an outrageous rate, like 90% or so. At the same time we offer credits that reduce the rate on a jobs in the US basis. The more jobs you create in our economy, the lower you are taxed. We don't care where you are based, this is how it is in the US. Create jobs in our economy.

If you'd rather sell cheap crap made with slave labor, then we're gonna squeeze your margins.

Just a thought...
-Hoot

[Statistical]

1. How many companies would simply re-incorporate in other countries?

[hootinholler]

2. It wouldn't matter

The tax is on profits made in the US economy.

-Hoot

[Statistical]

4. LOL.

How exactly are you going to calculate that?

Even if you could expect the WTO to slam US with tarrifs and fines for illegal taxation of foreign entities.

Even if it were illegal you could obviously expect every other countries to do the same thing.
Will US companies have to start paying taxes to the 200+ countries we export to?

Trying to use taxation of corporate profits to solve fair trade is fail.

Tariffs is the route the US can legally use we simply chose not to.

Warren Buffet has a very simple (so simple Congress will never support it) system called Import Certificates which is essentially a floating universal tarrif.
http://en.wikipedia.org/wiki/Import_Certificates

As we import more the cost of import certs goes up (which raise relative cost of imported goods and provides more revenue for exporting companies). It is self regulating and self leveling.

[hootinholler]

5. Well, I figured a computer would be involved...

Hmmm, using tax code to affect behavior in the economy, I think it's been done before.

The WTO wouldn't have standing as it affects all goods sold in the US without regard to origin. That you can earn tax credits for demonstrating the maintenance of US jobs encourages any corporation to invest here.

As to others imposing tarrifs, let them.

That is an interesting idea that Mr Buffet has.

-Hoot

[Warpy]

3. Free trade without fair trade has been a dismal failure

and we need to figure out how to free up seed money to get vital industries restarted in the US. I'm talking about making our own cloth, shoes, and other necessary items. Asia can keep the plastic junk that breaks in two weeks and Asia can supply the third world with cheap consumer goods.

This country has become astonishingly weak to the point that we can't survive a large scale war now, especially a trade war. Our cheap off the rack clothing will fall apart quickly as well as our cheap, non repairable shoes. As electronic equipment wears out, it's gone forever because we don't make any of the component parts. The same goes for many car parts.

This is a matter of national security, much more so than keeping offshore bases and buying more and more military junk to stop the Russkies at the Fulda Gap.

I wish Washington would wake up, but they won't until it is too late and they're trying desperately to find someone who will sew old tires onto the bottoms of their worn out Bruno Maglis.