The President doesn’t seem to have a good handle on the full court press it is going to take to bring corporations back to America. He tepidly tried in his SOTU last night, the President spoke on “fair” opportunities for all Americans in his State of the Union address. Yet, it wasn’t fairness of opportunity that he focused on, it was disproportionate taxes that he called for. It isn’t that this is necessarily, inherently wrong. It is just that, it doesn’t work.
Taxes and Jobs
Rather than putting forth a simple 0% corporate tax (or a lowered tax such 10 or 15% on all businesses), he called for more exceptions, nuance and opt outs. He’s not alone, most republicans have done the same. But rather than sticks to punish businesses that move overseas, shouldn’t we be handing out carrots to anyone that comes here? Why should the government be in the business of punishing businesses for moving overseas? The President did suggest carrots for businesses that come here. Which is good. But why can’t the policy be consistent? America isn’t competitive in its wage laws. We have to make up for it elsewhere.
A recent NY Times article discussed Apple Computers and their plants in China. At one point, when Apple made a last minute change to one of their “i” products, they woke up their workers at midnight (who all lived in on-site barracks) and got them back to work. High corporate taxes are one of the reasons corporations have gone over seas. But so are unions and so are we. Show me the American who is willing to wake up in the middle of the night to make computers for less than minimum wage? We wouldn’t do that job for less than $15 per hour, but they will do it for $2. Some things can be changed some can’t.
The President needs to go all in on the things we can change.
How many of us want to pay $1200 for a new ipad rather than $500? The reality is that the world has changed. Politicians in both parties have been writing checks that they simply can’t cash. China and India are different. Americans’ expectations have changed.
What government CAN do, is completely ELIMINATE corporate taxes. ELIMINATE THEM. Cut discretionary defense spending and entitlements to pay for it. Until then, I didn’t hear any of the presidents’ proposals that were going to get the economy moving again.