I agree that we shouldn't subsidize such a break. But, depending on the math, there may not be much of an actual subsidy. By increasing the number of jobs and/or the wages paid, the tax base is increasing. So; while Apple may get a break for bringing those jobs back, the actual net cost to the country may be something less than zero because there are now more people paying taxes or those that are already now pay more tax due to higher wages. I haven't seen or created any models to show what this might look like. However, don't assume that just because Apple gets a $1M tax break doesn't necessarily mean it is costing the taxpayer anywhere near that.
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Donald Trump Tells Tim Cook He'll Offer Apple 'Very Large Tax Cut' to Make Products in America
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I agree that we shouldn't subsidize such a break. But, depending on the math, there may not be much of an actual subsidy. By increasing the number of jobs and/or the wages paid, the tax base is increasing. So; while Apple may get a break for bringing those jobs back, the actual net cost to the country may be something less than zero because there are now more people paying taxes or those that are already now pay more tax due to higher wages. I haven't seen or created any models to show what this might look like. However, don't assume that just because Apple gets a $1M tax break doesn't necessarily mean it is costing the taxpayer anywhere near that.
Precisely. I've been saying this for years, but the half-assers here who think they know more than the economists simply continue to spew liberal, no-nothing drivel propaganda based on their own "feelings" about how things work. The only economics classes they've ever taken were home economics where they learned to make a grocery list.
Tim Cook has stated on several occasions he would like lower tax rates on overseas income brought back to the US. Current tax policy puts US companies at a competitive disadvantage.
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If it's a general tax cut or one directed toward a wide range of industries (rather than just Apple in particular) it wouldn't be "crony capitalism."
And you're willing to pay 20% more for your goods? Tariffs are on whole sale prices.
Except that you'll be unemployed because U.S. companies won't be able to afford paying you when they lose all those foreign sales.
I'm actually in favor of lower taxes for businesses and I agree that it can create a multiplier effect that increases net tax revenue. What I'm against is tax cuts that favor large businesses over smaller ones, which is the effect of the current tax system (larger companies can afford tax consultants and lawyers which lower their effective tax rates) and selective cuts like Trump proposed which would exacerbate the tax advantage of large corporations. This creates a subsidy for large business at the expense of smaller businesses and individuals.
I don't blame Obama for all of this. This trend started in the 90s and has accelerated. It is when we decided to move manufacturing to China in exchange for cheap goods. This helps the American consumer but it hurts our manufacturing base and exports. Twenty years later, we are paying the price with the loss of middle class jobs and a move to service jobs. The trade deficit had exploded in this time. This cannot continue forever.
You are incorrect.
I was referring to Apple's failed sapphire manufacturing plant in Arizona.
Apple got about $30 million in tax breaks for about 150 (fewer than the 500 I recalled) potential jobs created.
You do the math and tell me if this is fair to local companies employing similar number of people, without the legilature passing specifically-tailored bills to grant them special tax breaks. Or if it's fair to the taxpayers.
http://kjzz.org/content/101917/apple-will-reap-tax-incentives-while-creating-fewer-valley-jobs
Granting special tax privileges to individual mega-corporations is wrong, period. It is corporate welfare and it is unfair to smaller companies (or competitors).
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The illegal immigrants will be thrown out, not thrown in jail.
Try to explain 'supply chain' to Trump. The tax break alone will not allow Apple to build their phones here...unless we drop the minimum wage...
No, you said "As to Apple's new plants, if I recall, Apple already made noise that it's moving an iPhone plant from China to the US." That was incorrect and had nothing to do with the sapphire plant that failed.
That's fine, but things sucked in 2009, and to get unemployment, you still had to have a job to start with, and people pay into regular Unemployment Insurance.
I have friends who were contractors that got laid off, and they got exactly squat, even though those extended unemployment benefits came out of the general fund, which we all (people with jobs) pay into.
The sapphire plant was for the iPhone FS sensor....
Are you missing the point about the issues relating to individual mega-companies preferential tax breaks?
Really?
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Yes. IMO we are a spoiled nation in 2016. Think about what prices of such items we use every day would have been back in the 80's. 20-30% more would be worth it knowing that WE in America are the ones controlling what we build. We have become a pathetic nation of consumers and reliant upon China to make so much of what we use. Stupid.
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Sure...because China buys so much of what we are producing here. Cars they buy aren't made here as they require many of them to be made on their soil. I work in medical and other industries that service the US Only.
It's neither liberal nor 'half-assed' to point out that the savings reflected by automation are going to outpace anything the government could offer quite quickly. It's not as though Apple is going to be able to move their factories here overnight, it would take time and a lot of money and for what? The subsidies would have to increase year over year until American citizens would basically be paying Apple to employ them. At some point the balance *is* going to tip, there's no point in prolonging the pain of the inevitable.
My preference would be for the 'mom and pop' companies to get these breaks. What I'm not certain of, however is whether or not that would be better, worse, or the same for the common good as giving the breaks to larger companies. I could argue in either direction.
That was all pre-election trash talk, anyway. In reality, under Trump, immigrants will be taking all the best jobs in the country
How is it legal for Trump to offer a tax incentive to get Apple to do something but it was illegal for Ireland to offer Apple tax incentives to get them into the country?
I think the European Commission are taking the piss, are jealous and want some cash.
I wonder if China will try to sue for loss of revenue.
I think the European Commission are taking the piss, are jealous and want some cash.
I wonder if China will try to sue for loss of revenue.
