The of Japan wrote:Grand Britannia wrote:What stops a company from moving their production to where it's cheaper?
maybe not having 40% corporation tax?
Moving production doesn't move where they are taxed.
Even if I cut corporate tax to 5% they'd make even more money if they just move production overseas where they dont have to worry about silly things like minimum wage and working conditions.
Ism wrote:The of Japan wrote:I'm pretty sure that is not the definition from what I heard from others.
It's an important element of it, as can be seen with Kansas. Without that growth replacing the taxes, the entire idea falls apart.
Grand Britannia wrote:What stops a company from moving their production to where it's cheaper?
Nothing. But forcing them to stay here can and will lead to layoffs, shutdowns, bankruptcies and ultimately, automation. Instead of saving doomed jobs, we should focus on creating new jobs for the people at risk.
It does none of those things, companies move production overseas to increase their profit margin, not because they are desperately running out of cash.
They should be given incentives to expand domestically and punished if they take the jobs out of the country.