Evans to Unveil Plan for Manufacturers(cut taxes to "save jobs"- surprise!

http://story.news.yahoo.com/news?tmpl=story&ncid=578&e=5&u=/nm/20040116/bs_nm/economy_manufacturing_evans_dc

Evans to Unveil Plan for Manufacturers

Fri Jan 16, 2:37 AM ET By Doug Palmer WASHINGTON (Reuters) -

A long-awaited Commerce Department report on how the government can help restore growth in the hard-hit factory sector calls for actions aimed at trimming the tax and regulatory burden on U.S. manufacturers, a Commerce official said on Thursday.<snip>

An industry official familiar with the report said it deals with U.S. manufacturers concerns about China's currency policy by repeating the administration's call for countries to follow flexible exchange rates. Manufacturers have complained that China's pegged exchange rates gives it an unfair advantage. <snip>

The report is the result of an effort launched by Evans in March 2003 to develop a comprehensive plan to help the manufacturing sector, which has lost about 2.5 million jobs in recent years and remains a potential political liability for President Bush heading toward this year's election.

But in annual forecast on Thursday, the National Association of Manufacturers said it expected U.S. factory production to increase 6 percent this year and generate about 250,000 jobs. A weaker U.S. dollar and improving world demand has given the sector a much-needed boost, the group said. <snip>

A study by the two groups estimated production costs were 22.4 percent higher in the United States than overseas because of high corporate tax rates and soaring health care, legal, pension and energy expenses. <snip>

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dalai

So sed Doctor Bush* :grr:

giveaway before they fear having their asses handed to them.

RAISE taxes on any profitable company that ships its jobs, especially manufacturing, overseas, preferably to 100% of all profits. Problem solved.

Taxes are levied on what's left over after a company has met all its legitimate business expenses, including employee wages and benefits. Corporations and partnerships typically pay the owners a salary, also from pre-tax income, and sole proprietors (like myself) are not taxed as businesses, but as individuals, so cuts in corporate taxes don't help them at all.

I once heard an expert on the Japanese economy attribute Japan's industrial success in the 1970s and 1980s to the high corporate tax burden. It was high enough to discourage companies from posting too much profit, so they plowed their earnings back into hiring extra employees, pursuing R%D, and establishing overseas sales outlets.

Any business person who tells you that they went out of business because of high income taxes is making excuses.

He makes the point in the Suskind book that co.'s don't buy inventory beacuse they are getting a tax cut especially if they have inventory already sitting in the back. Likewise, they don't hire people because they got a tax cut in both situations they pocket the cut.

One thing has nothing to do with the other.

The people of Greenville, Mi would love to hear it.

Electrolux To Close Plant in Greenville

Electrolux Announcement Delayed



The city of Greenville and the state of Michigan went above and beyond to keep that plant open. They offered a new plant, tax incentives wage concessions, you name it they gave it. It just wasn't enough. But Don, the truly sad thing is that they appealed directly to you for help. Where were you Don?

State showers Electrolux with Last-Minute Pleas

-SNIP-
Democrats Debbie Stabenow and Carl Levin on Wednesday asked U.S. Commerce Secretary Donald Evans "for your immediate personal involvement" in helping convince Electrolux to keep its Greenville plant, saving 2,700 jobs.

It is unknown whether the Commerce director acted on the request.
-SNIP-



Jay

How can American manufacturers compete with European, Japanese, and Canadian manufacturers when US manufacturers have the added expense of covering health care for their workers?

Gee that just might work. Of course selling not only a "socialist" program to the American masses let alone an understanding that they need to put aside the memememe attitude for a greater good (that would actually benefit them more) is going to be a hard sell and doesn't fit into soundbites without sounding overbearing.

I saw an interesting report on the news where in some Asian country (wish I could remember which one) a coalition of small business owners got together & demanded that govt. start a nat'l. healthcare system, because it was so expensive for them (sm. bus. owners) to offer their employees health insurance, that it was hard for them to stay in business. The demand of the small business owners worked & the country got nat'l. healthcare.

More and more people are coming around to a single payor national health insurance plan. Among the ama more and more doctors are seeing the benefits.

Another presidential election cycle should see it become politicly possible.

every decision like this will be seen for what it is. Instead of suspecting it's unjustified economically, people now KNOW it is.

Plus, we all have a visual image of the meetings this decision resulted from.

Thanks Paul! :toast:

Why didn't you do this three years ago?

Oh wait. Never mind.