Do you support these Dem's plan to give tax breaks to corporations that produce in the U.S. with U.S. workers?

Question

There are two similar versions of the bill. The Senate bill is outlined in the first link below, and the House in the second.

Basically, a "'Patriot Corporation' would get tax breaks and preferences in federal contracting for employers who produce at least 90 percent of their goods and services in the US and with American workers. The companies must invest in research and development domestically, provide adequate health care and pensions and--surprise--comply with federal laws like workplace safety, environmental protection and consumer regulations."

http://durbin.senate.gov/record.cfm?id=280372
http://www.thenation.com/blogs/notion?pid=219923

Answer 1

Yes. RIght now, corporations are given tax breaks and they take our jobs overseas and in some cases, keep those profits overseas.
We should give the incentive to those companies who see fit to stay here and support the American workforce and help bring jobs back here where they should be. Maybe it will further help the nation as a whole so we will limit our exposure to inferior products. Look at all the recalls we have had in recent months for fish, toys etc that have been imported. We have such a huge trade deficit because we import more than we export. We need to turn that around

Answer 2

Steve, while the concept is facially appealing, it has problems:

First of all, it is a government subsidy of industry, which serves to make the industry artificially competitive. Our trading partners (Chinese, Japanese) do it and we resent it when they do because the cost of goods sold under such a system isn't truly representative of the cost of the goods.

Second, any competitive advantage obtained in this manner is an incentive NOT to be more efficient or to deliver quality for the price paid. Thus, if an American company knows that its Korean counterpart has lower cost of labor, the American company has an incentive to be more productive and efficient. As a matter of fact, that's what's happened.

Third, the ties between American Industry and the government bodies which administer the tax benefit are open to all kinds of mis-use and corruption -if we're uncomfortable with Uncle Sam's ability to keep the bridges safe, what comfort should we take from a subsidy program?

Fially, do we want an even more compex tax code and yet another layer of Federal bureaucracy?

Given the system as it is now, there have been painful and quite dramatic shifts in the labor force, but one of the outcomes which has become typical is foreign industries putting factories in the US, and hiring US workers. I don't have a problem with that, and it is directly responsive to economic reality.

Incentives exists already, in the form of local tax breaks for companies which locate in certain areas which are competing for industry. While that, too, is open to abuse, it nonetheless exists at a local level where the competition is between and among American communities. It is therefore much better connected to particular cnditions in particular places.

There are also is funding for workers who are displaced because of broad economic developments over which they have no control.

R&D, of course, has always been a write -off. And laws about workplace safety apply no matter where your HQ is located.

Bottom line: potential for mischief too great; potential for meaningful gain too little.

I say, "Nay."

Answer 3

As much as I would like to believe that it would help, I don't believe it would.

As long as people are in business for profit, they are going to produce their goods where labor and materials are cheapest, and regulation most lax. They are then going to transport those goods to sell them wherever they command the highest price.

Our government seems to be singularly unable to craft regulatory legislation without allowing loopholes to be installed wherever corporate campaign donors demand them.

Chinese factory workers will do their jobs for >$1.00/day. Mexican workers are willing to live with eleven other guys in a one-bedroom apartment. Americans want to own two homes, three cars, and have health insurance paid by their employers. It doesn't add up.

Fundamentally, this change will not come from the government, but from us. When we start reassessing our priorities, demanding an end to corporate subsidies, demanding that those businesses that do business in the US pay US taxes instead of burying them in phony Cayman-Islands tax shelters, and start looking for local solutions to our difficulties, we will start to do better.

We're still pretty far from that point.

Answer 4

First define country, its borders, language, and culture. Doesn’t just make since to protect the domestic industries in this country and not be dependent on other countries to supply products. This is what most of us American want. I for one will NOT purchase most products made in foreign countries, as will most of the people I know. Try and buy a pair of shoes made in America its almost impossible same goes for most clothes you purchase. Basic products cannot be produced in America because of government involvement adding regulations that we cannot comply with.

Yes, there is a big bag lash about everyday products being out sourced. This is why the inter net businesses are growing so big in America. We can produce our American made products and sell them straight to the American people.

I inter structure of this country has been destroyed by out sourcing to foreign countreis. If the government would reduce the tax on corporations they would come back to America and produce products here creating jobs and industry once again. It doesn’t take a rocket scientist to see that.

However adding a bunch of nonsense rules and regulations to a law will defeat the purpose of giving corporations a break in one place and taking it away in another is just crazed. Why would any company invest in such nonsense? You wouldn’t nor would I so why would we expect the private sector to do the same?

Just let the American free market run their own business and keep the regulations out of it. This is exactly why I closed my first business I could not comply will all the rules, regulations, and pay all the taxes on top of it. In the nut shell government put me out of business unless I wanted to cheat and hope I did not get caught to keep my business going. I chose to stay out of jail and closed the business. Thanks to government rules I lost my business in to many taxes and regulations it just wasn’t worth it.

Just one man’s opinion.

Answer 5

Absolutely. People are not only losing their jobs, being forced to accept inferior products, losing their benefits, but we are also being left vulnerable in that some products aren't even manufactured in the states anymore. When this happens, these manufacturers in foreign countries will raise their prices through the roof on these products. Its called a monopoly.

What if we go to war with a country that manufactures most of our needs? Where will we get them? It takes a long time to retool a manufacturing plant and get the ball rolling. Even the machines for these plants are usually from foreign countries. 96% of our clothing is now from foreign countries. All vitamin C is manufactured in China. It went from $4 to $10.

Answer 6

reliable factor. do not forget approximately to show that Japan is financially sound, additionally. through fact of this they don't desire the corporate taxes - for entire sales -- like we do!! usa can not grant each and every of the products and amenities which our society has come to have self assurance in - roads, bridges, hospitals, museums, libraries, the terrific protection interior the international - if we've not got healthful tax sales from the companies that are making billions ( and each now and then, trillions) in earnings through yankee device.

Answer 7

No I do not.
America has to be competitive. Why should cheese in Mexico be cheaper than in the US? We have better technology and we should have competitive advantage. Why should a gallon of american sweat cost more than Indian?
We need to reform healthcare that is the single most expensive cost for businesses.
Take care of the real problem, not dressing it up.
Why should my tax dollars build one $250 million dollar bridge, when they could build two? Give me the best bang for my buck. Ford and GM should make better and cheaper products than Nissan or Toyota period

Answer 8

No.

Dick Durbin is a traitor and needs to be opposed at EVERY TURN.

As for sprinkling cash on corporations, I'm all in favor of it in the form of low or non-existent tax rates - direct subsidies should be outlawed in the constitution. Please remember: corporations don't pay taxes - their customers pay those taxes in the form of higher prices.

The evergreen Democrat Party idea of picking corporate winners and losers is the biggest joke ever perpetrated by that bunch of losers. Why do they never get called on it by the press that loves them so? Oh, right, that would let the cat out of the bag, wouldn't it?!?

Answer 9

Sounds like a good way to keep business in America and keep American workers employed. Also sounds like a good way to avoid contaminated products like the flood of crap we are getting from China lately. Where's the down side?

Answer 10

Yes! Look what is happening with the goods imported from China. Let's get back to having our country make some of the things we purchase!!