Quote:
Originally Posted by mkfffe
That is but a half-truth. Since we are no longer taxing income, companies make more profit, however because we are taxing sales the price (that's base price not final sales price which incorporates all taxes) to stay competitive will have to drop or other countries will still have the edge. If it costs $10 here to make one widget (that is including wages) it will cost 13-14 dollars after taxes (city/county (in some places)/state/federal). Now that same product might only cost $4 or maybe less to make in China making the final price 5-6 dollars. Why would the federal tax bring jobs back?
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Companies will have a large edge because of America's tax freedom. All imports will fall under the faritax. Exports on the other hand will not. Goods can leave tax free. Companies will place jobs here for that reason. Right now we have a tax disadvantage. It is against a companies best global interests to be based in America because it makes them less competitive. This will change that. Jobs will return and come here.
Even if the increase is smaller than expected why is that a problem? It is still an improvement.