Loading ...Yes the tax cuts won’t help the corporations. The tax cuts will help the US gov’t pay its bills, and help the US taxpayer support the gov’t, big business and the economy. They moved off shore to avoid US taxes and Labor prices. The tax cuts are to make them abandon China et al and relocate their facilities back here.
Yes it will help small corporations because, the ones that barely survived here with a 35% then a 20% tax is helps.
Re the grand prize is if the gov’t can get the money back? That’s just a skimpy media explanation for public consumption. Think about it. The media is implying there are $trillion bank accounts sitting over seas, and they want to move those bank accounts back here? What good is that? It makes no sense.
What they really mean is they will sell or abandon their over seas infrastructure or buildings, and rebuild their production facilities here. As for the effect on the lower tax effect on the US economy? They may have waited too long and or too gradual a transition or transformation. That would be deflationary if the economy stars slowing down again with their foot on the gas.
They started this transition very slowly after the ’08 crash during Obama and Trump had nothing to do with it. Getting Trump and his words or rhetoric involved is mostly for a psychological effect, and to speed up the process.
By the way, “China” announced they are clamping down pollution, targeting the Copper industry, that why Copper is doing well. Less supply. Its all in reverse. China’s turn to cannibalize themselves with make believe non productive gov’t and environmental jobs. Chin is also being modified to be an import economy. Meanwhile the Chinese president also has nothing to do with how their country gets changed.
Who needs who more? Sales and Service needs products to sell and service. Products don’t really need, can live without sales and service. Just go factory direct and throw it away if it breaks.
We buy from “China”, it brakes, we throw it away. When we made everything here? And our stuff was expensive? It was worth fixing locally. Many fix it jobs, even in peoples back yards, called cottage industry.
Business “startups”? I’ve seen many in the ’70s. From ’45 to ’75 minimum wage had a lot more buying power. Skilled folks earned far more than they needed, and built up savings accounts.
Later on they QUIT their job, took their skill with them, that they learned on that job, and started their own start up. 🙂 And competed with their old boss.