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Obamacare is responsible for the loss in manufacturing jobs in the US since 1939...
In 2010, however, Congress, ravenous for revenue to fund Obamacare, included in the legislation a 2.3 percent tax on gross revenue — which generally amounts to about a 15 percent tax on most manufacturers’ profits — from U.S. sales of medical devices beginning in 2013. This will be piled on top of the 35 percent federal corporate tax, and state and local taxes. The 2.3 percent tax will be a $20 billion blow to an industry that employs more than 400,000, and $20 billion is almost double the industry’s annual investment in research and development.An axiom of scarcity is understood by people not warped by working for the federal government, which can print money when it wearies of borrowing it. The axiom is: A unit of something — time, energy, money — spent on this cannot be spent on that. So the 2.3 percent tax, unless repealed, will mean not only fewer jobs but also fewer pain-reducing and life-extending inventions — stents, implantable defibrillators, etc. — which have reduced health-care costs.Cook Medical is no longer planning to open a U.S. factory a year. Boston Scientific, planning for a more than $100 million charge against earnings in 2013, recently built a $35 million research and development facility in Ireland and is building a $150 million factory in China. (Capital goes where it is welcome and stays where it is well-treated.) Stryker Corp., based in Michigan, blames the tax for 1,000 layoffs. Zimmer, based in Indiana, is laying off 450 and taking a $50 million charge against earnings. Medtronic expects an annual charge against earnings of $175 million. Covidien, now based in Ireland, has cited the tax in explaining 200 layoffs and a decision to move some production to Costa Rica and Mexico.Already 235 members of the House of Representatives — 227 Republicans and eight Democrats — are co-sponsors of a bill to repeal the tax. Twenty-three Republican senators but no Democratic senators favor repeal. The Democrats who imposed this tax on a single manufacturing sector justified this discrimination by saying Obamacare would be a boon to the medical devices industry because, by expanding insurance coverage, it would stimulate demand for devices. But those insured because of Obamacare will be disproportionately young and not needing, say, artificial knees. And well before Obamacare, the law had long required hospitals to provide devices to the needy who are uninsured.Well, yes. In 1990, when President George H.W. Bush’s recanted his “no new taxes” pledge, he enabled the Democratic-controlled Congress, with a legion of New England liberals in the lead, to impose a 10 percent tax on yachts costing more than $100,000. Yacht sales plunged 70 percent in six months, a third of all yacht-building companies — many in New England — stopped production and more than 20,000 workers lost their jobs. In 1993, the tax, although not the damage, was repealed.
Obamacare is responsible for the loss in manufacturing jobs in the US since 1939...
No wonder we have no new jobs in this weak recovery. All the business is going to be taxed to the point our jobs will be moving to Asia, South America, Canada, etc.
link?
Capital also goes where people work for a dollar a day, community and family be damned. That started well before the current regime. Not that it is that inhospitable to our fellow citizen joint stock corporations...after all the then junior Senator from Illinois was on board with the free market socialization of their losses by the federal state.
Not to mention that these trends should be welcomed by the erstwhile defenders of rock ribbed corporatism. Let's dispense with nostalgia for the American working man once and for all and enjoy the returns from more hospitable coves for capital, such as the one maintained by the Chinese communist party.
The great consumer paradise. Who cares if there are enough jobs for your family, friends, neighbors, and countrymen when you can save ten cents on toothpaste?
Selling out your country to the ChiComs to make a buck is not greedy or unpatriotic, expecting some modicrum of allegiance to your country is.
The Chinese model is much more hospitable to our corporate citizens. Soon enough we will shed our desire for silly things such as individual liberty and political rights and fully embrace our overlords.
seriously if these companys take their somewhere else....govt should just increase fkn tariffs and ...open up a replica company and start mass producing , thats what commies do when they find out ur idea/company can actually make money after a few years....they make up some to take you out of business then take over...some of these companys never learn
How Apple Sidesteps Billions in Taxes
Every second of every hour, millions of times each day, in living rooms and at cash registers, consumers click the “Buy” button on iTunes or hand over payment for an Apple product.
And with that, an international financial engine kicks into gear, moving money across continents in the blink of an eye. While Apple’s Reno office helps the company avoid state taxes, its international subsidiaries — particularly the company’s assignment of sales and patent royalties to other nations — help reduce taxes owed to the American and other governments.
Apple has created subsidiaries in low-tax places like Ireland, the Netherlands, Luxembourg and the British Virgin Islands — some little more than a letterbox or an anonymous office — that help cut the taxes it pays around the world.
Apple serves as a window on how technology giants have taken advantage of tax codes written for an industrial age and ill suited to today’s digital economy. Some profits at companies like Apple, Google, Amazon, Hewlett-Packard and Microsoft derive not from physical goods but from royalties on intellectual property, like the patents on software that makes devices work. Other times, the products themselves are digital, like downloaded songs. It is much easier for businesses with royalties and digital products to move profits to low-tax countries than it is, say, for grocery stores or automakers. A downloaded application, unlike a car, can be sold from anywhere.
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Can someone holding these jobs explain gas prices and oil reserves?
China's advantage of US is not low taxes but extremely cheap labor, plus $10Bs/year in govt subsidies, and an undervalued currency.
btw, FoxConn clears 1% gross profit margin while its client Apple clears 39%.
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