Tags: political | taxes | companies | outsource

Political Taxes Have Forced US Companies to Outsource for 40 Years

Political Taxes Have Forced US Companies to Outsource for 40 Years
(James Steidl/Dreamstime)

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Wednesday, 27 June 2018 04:13 PM Current | Bio | Archive

What is a tariff? The dictionary defines a tariff as a tax on imports or exports between sovereign states. In the last 500 days, taxes on U.S. citizens and U.S. companies are both down substantially for the first time in 50 years thanks to the new leadership from President Donald Trump.

Personal and business deductions and expense provisions have been expanded. All of this has a cumulative effect of lowering so called “internal and interstate tariffs” on the businesses and citizens of the U.S.

Harley Davidson was hit with increasing regulations and increasing taxes for the last 50 years from federal and local politicians.

Now these company taxes are coming down after a generation. Thanks to Congress and Trump, corporate taxes and income taxes are lower where companies can now compete on a more level playing field. Companies are hiring rather than firing people due to lowered tax and regulatory costs.

Here are some breaks where Harley Davidson directly benefits from the new tax code

  1. Lower corporate taxes
  2. Tax incentives and higher profits to hire people
  3. More tax deductions for employee benefits.
  4. Stock buy backs that generate income for local citizens and tax revenues for both state and federal governments.
  5. The cost of repatriating offshore revenue has come down considerably allowing for hiring, investing local, and company growth
  6. Employees have greater deductions for child care.
  7. Health care tax deductions are higher for workers.
  8. Group insurance reduced do to lower corporate taxes.
  9. Supplier’s costs will be reduced do to lower federal taxes
  10. New QBI Qualified Business Income Provisions which lower costs for suppliers.
  11. Buyers will have more disposable income due to lower taxes.
  12. Employees have greater hardship provisions to borrow from their 401K
  13. Survivors of major stockholders of Harley will not be forced to sell stock with the new Estate Tax Provisions which creates stability of stock ownership.
  14. Less costs and regulation on manufacturing and permitting.
  15. More dividend money to pay out generating local and federal income and taxes on Main Street..

However, Harley Davidson Still Gets Hurt and Here’s How

Harley also pays local, city, state, and other taxes which are higher than in most competing countries. Here are other taxes that a company and stakeholders pay in the U.S.

  1. State income tax
  2. Local property tax
  3. Local ad valorem tax
  4. State fuel and gas taxes
  5. Other energy taxes
  6. Water taxes
  7. Transport taxes
  8. Health care taxes
  9. Payroll Taxes
  10. Sales taxes
  11. Consumption taxes.
  12. State corporate taxes
  13. Use Taxes
  14. Licensing and Permit taxes.
  15. Educational taxes.

The reason that entire industries left the U.S. over the last 50 years are: costs, regulations, and taxes.

If the local taxes were not so cumulative, businesses would stay. Now that the costs are coming down, there are companies moving back to the U.S. for the first time in years because the U.S. has the best infrastructure, least sovereign risk, and great customers.

Along with the lower costs of doing business, the U.S. is primed to succeed for the first time in a generation.

George Mentz JD MBA CWM Chartered Wealth Manager ® is a licensed attorney and CEO of GAFM ® global education, which is an ISO 29990 Certified professional development company operating in over 50 nations. Mentz is an award winning author and advisory board member to several companies around the world in education, charities, and crypto currency.

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GeorgeMentz
If the local taxes were not so cumulative, businesses would stay. Now that the costs are coming down, there are companies moving back to the U.S. for the first time in years because the U.S. has the best infrastructure, least sovereign risk, and great customers.
political, taxes, companies, outsource
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2018-13-27
Wednesday, 27 June 2018 04:13 PM
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