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which was basically created by the Republicans so that their friends in high places could keep more of their money and fuck the American worker at the same time. Democrats ( Bill Clinton ) had a hand in this also.
To renew America's economy, the U.S. must stop rewarding overseas manufacturing and investment. Currently our tax code is set up to reward American corporations that invest abroad and penalize those corporations that invest at home. When American corporations move overseas they are only taxed on the money that is brought back into the U.S. So American companies simply do not bring money back into the U.S. Instead they keep their overseas profits overseas and that money which could have been funneled into the American economy is instead absorbed by foreign economies. U.S. companies then parlay their earnings into building more factories and infrastructures in the countries they are inhabiting like China and India.
Due to our current tax codes it is more profitable for American companies to manufacture their goods elsewhere and ship them to the United States. The U.S. needs to adapt tax codes that provide tax breaks to those companies that keep American companies on U.S. soil and stop providing tax breaks to companies that move offshore.
I do not think that Obama, or anyone else, will touch this part of our tax code.
The next administration needs to provide incentives for Americans to keep their companies in the U.S. Our “free trade” policies like the North American Free Trade Agreement and the World Trade Organization make it impossible for the United States to be competitive. NAFTA has led to the U.S. having an explosive trade deficit of $190 billion with Canada and Mexico. The trade deficit equals job loss. If we had a trade surplus it would mean we were producing instead of buying, there would be more people employed to do the production. America has become a service economy, leaving manufacturing to the rest of the world, which is truly the heart of America's distress. Until America restores its manufacturing base, we will have no means to recover.
A tax-code goodies for you.
The incentives for US companies to invest abroad are myriad and complex. They can borrow money in the United States, and deduct the interest from their taxes. They can take that money and earn income on it abroad, and perhaps never pay taxes on that income. The expenses of foreign taxes are deductible against US taxes, so in the end, United States taxpayers pay the companies taxes in places like China.
