Lowering Taxes Help Job Growth?

[general35]

Wow, what a strange concept. The president of Brazil has cut taxes and regulations for Foxconn(maker of the apple I-pad) and it looks like Foxconn is going to build a 12 billion dollar factory in Brazil. It is expected to have an economic impact creating up to 400,000 jobs. wish we had such common sense government officials here.

The Link

 

[Oilfield]

Hell of a concept.

 

[LongJohn]

And the U.S. has its own, real-life experiment illustrating tax increases kill jobs. The government, in its brilliance, decided to "soak the rich" by levying a luxury tax on high priced items in the early 1990's. The thought being that the rich will just pay it. Well, the actual effect was to basically gut the yacht industry, killing numerous businesses and putting many boat builders and employees out of work.

The rich didn't become rich by being stupid. They chose to spend their discretionary income elsewhere instead of buying yachts and being gouged by the federal government. The tax law was eventually repealed but not before causing irreparable damage to the boating industry.

If you let people and businesses keep some income they will use that income to hire people, invest in companies, buy stuff, etc. All with the effect of employing people vs. putting it in the government's hands only to dole out entitlements to the very people who lost their jobs due to the tax increase!

 

[Monahorns]

An interesting side issue is that Brazil's president was associated with a far-left, communist movement very early in her political career. They were opposing the military regime of that day.

Now she is not only not nationalizing industry, she is essentially decreasing the government control (taxes) over private business. Of course Brazil's government control private business in other ways that we don't. Still interesting.

 

[YoLaDu]

i didn't see the quote of 400,000 jobs created in the article, but i will take your word for it.

Regardless, i don't think the article necessarily shows the cause and affect you are trying to show. One could argue the workforce that will be paid much more cheaply than in America might be a more determining factor for the move than lower corporate taxes.

lowering the tax rate for Apple in America is not going to bring plants back here to be built and when they still have to pay living American wages to the workers in these plants.

 

[texascoder]

In reply to:

---

---

 

[brntorng]

I suspect a big reason for locating the factory in South America is to avoid the high tariffs that are charged on imported electronics there. This will be very good for Apple's sales because they have virtually no penetration in South America because of the tariffs. Add tens of millions more iOS devices to the forecasts as Apple begins to serve this untapped market.

 

[general35]

i didn't see the quote of 400,000 jobs created in the article, but i will take your word for it.

Regardless, i don't think the article necessarily shows the cause and affect you are trying to show. One could argue the workforce that will be paid much more cheaply than in America might be a more determining factor for the move than lower corporate taxes.

lowering the tax rate for Apple in America is not going to bring plants back here to be built and when they still have to pay living American wages to the workers in these plants.
__________________________________________________

This plant would never have been built in the United States. As long as we have a demand for cheap electronics and such , it will not happen here because of the high wages. it works for many industries. i have a friend opening a plant in costa rica because he can pay the workers $2.00 per hour instead of $15 here. it is the reality of the global economy and the desire for cheap goods and the removal of tarriffs. however, what jobs that could be created in the united states are also leaving and really already left because of the high taxes and regulations. the day of the low skilled labor job in this country is over and unfortunately, our school system is not preparing the youth of this country for high skill jobs. at our current rate, we will be nothing more than a banana republic in about 25 years as the wealthy and educated get a bigger piece of the pie.

 

[Gadfly]

In reply to:

---

---

 

[Bevo Incognito]

Well if you guys would quit demanding such a huge government, we could lower taxes. Instead, you keep voting for the same Republicans and Democrats who gave us two vastly expensive wars, the prescription drug benefit, the Deparment of Homeland Security, the TSA etc...

Then you complain when somebody wants you to pay taxes for all this crap.

Were it not so tragicomedic it would be hilarious.