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>There is not a major company that does not have divisions in >multiple countries. That's why they're called >multi-nationals. They are still in the US not because they >want to be, but because they need to be here. This is still >the financial, research, and productivity center of the world. > This is the wealthiest, most secure, and powerful nation on >Earth. There is no reason we can't offer tax advantages for >companies to employ American workers, instead of offering tax >advantages to move jobs out of this country. It's the same >money better spent, and by the way, it's our tax money. >German, Japanese, and other companies have found it >advantageous to build factories and hire workers in this >country, so don't sit there in Thailand and try to tell me >that this country is not competitive with the rest of the >world. These companies are outsourcing for two reasons, tax >savings, and the ability to exploit workers in third world >countries that have no laws protecting their citizens from >predatory practices.
Out of touch, aren't you? Deal with multinationals regarding this issue much? So, let's take it point by point. The US is the financial and research center of the world. Productivity? No, hasn't been in a long time. Nor is it necessarilly the most secure (you do remember 9/11, don't you?).
I deal with multinationals on a daily basis in regards to these issues. Here are the facts:
1. Yes, other countries are significantly more attractive than the US, primarily because of tax reasons. The primary tax problems in the US occur at state level, not Federal level (with the exception of the Income Tax point already noted), although if John F. Kerry is elected, it can be expected that it will be worse at Federal level.
2. "No laws protecting their citizens from predatory practices" - Bullshit. You have a law degree valid in SE Asia? Or anywhere in Asia? Have you visited the factories? Done business in Asia? Not only are there laws protecting workers, there is a much stronger cultural norm to take care of those who are injured.
The Germans and Japanese have found it advantageous to build factories in America because the tax burden is less than in their country, and the labor costs are also less. Of course, neither Germany or Japan tax the earnings those factories make in the United States or the earnings made by their citizens working in the United States. The savings in tax, labor costs and shipping of the final product make it worthwhile to those corporations. Plus, they don't deal with US Unions. When most of those factories were set up, quality control to match Japan and Germany was not available many places in the world, even the United States' workers needed extensive training to maintain the standards. That is no longer true. Today; China, Thailand, Vietnam, Mexico, Canada and many other nations are capable of maintaining that quality.
Compete or die. The US is still competitive in R&D, in financial services, in some other areas. But if they don't keep moving ahead, other nations will catch them in those areas (already pressing) as well as the areas that they have been caught already. Can't show a Return on Investment? Corporations will find somewhere else to invest.
The US is steadily losing ground because of an unwillingness to face change and adapt to it. Something that the United States has traditionally done well, but which is showing all too much reluctance to do today, primarily (in my opinion) because of the failure to recognize what globalization really means and the pressure from the Unions (not all, just the big ones) and Democratic Party who are focused on "protectionism" instead of solutions.
No longer does it take a lifetime to have a profession become obsolete. Today, it might happen in a generation. Adapt. There is no other choice.
There are countries that have a flat 3% as their corporate tax rate. That is what the United States has to compete with.
Oh, maybe it is because I am running a company in Thailand that I can actually see what is going on. Why don't you try looking at the problem from the outside, instead of trying to denigrate those who are?
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