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Old 2013-01-02, 11:44   Link #3564
Vallen Chaos Valiant
Logician and Romantic
 
 
Join Date: Nov 2004
Location: Within my mind
Age: 43
Quote:
Originally Posted by SaintessHeart View Post
There is one huge problem - the risk where the companies would just deregister themselves from the NASDAQ and NYSE and move over to Shanghai Composite, passing the leadership to a China citizen of their inner corporate circle and poof! US loses a bunch of corporate taxes. I don't know how protectionism can work when they have gotten this far down the road to hell.
The idea isn't to keep corporate tax. The idea is that losing tax income is worth it if it means recovery of local industries. Trade barriers means that if you want to sell to Americans, you are better off making the products in the country. A real life example; The New York Subway once was massively antiquated and needed updating. Kawasaki of Japan makes respectable train cars and they successfully made a bid. However because of protectionism laws, they ended up had to set up a whole Kawasaki factory in USA to meet the criteria. Boom! A whole group of people got jobs because of protectionism.

Americans buy things. They need to buy them, but they also have no jobs to support the spending. Corporate Taxes isn't going to give people jobs, only industries could. I guarantee Obama is willing to sacrifice Revenue if it means jobs; after all, isn't that what a Stimulus is meant to do?

Yet, if you don't set up trade barriers, most stimulus money would first flow to International Corporations, then exiting the country to the manufacturing centres elsewhere.
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