Chrysler moving production of trucks from Mexico to Detroit

[Salandriagado]

Go on then. Show me a proper analysis that shows it being extremely positive.

This is a pro. and this is a negative.

My god that positive one is a pack of lies (and claims that literally everything except for the corporate tax rate change is bad in the long term, incidentally - see table 5). In particular, it entirely fails to take into account the effects of government spending, quietly conflates GDP and government revenue. It also agrees with my claim that this will dramatically add to the deficit (their figure is $1.5 trillion over the next decade). Does "fiscally responsible" mean calling adding $1.5 trillion to the deficit over a decade "good" now?

[Sungai Pusat]

Even assuming that the moves were made entirely out of goodwill and that nothing else is being done behind the scenes,
several major companies are also choosing not to invest their tax cut money.

So at best, the tax cuts will be a wash in terms of how much benefit will go to the American workers directly.

[Salandriagado]

I think you misunderstood my point: my point is that most businesses will not raise prices in response to rising taxes (because doing so would just lose them more money), nor lower them due to falling taxes (because that's just throwing away free money).

I agree that they won't lower prices due to falling taxes but I do think that they will raise prices (Or lay off workers if need be) if you tax them directly.

No they wont: they can't raise prices, because that would lose them more money. Layoffs are possible, but only for businesses that are performing poorly, so this acts to strip out the less-efficient businesses, increasing overall economic efficiency. The demand for those products is still there, so more efficient businesses will take up the slack.

[Holy Tedalonia]

In what is possibly the first economic effect of Trump's tax cut legislation for corporations, Fiat-Chrysler Group has officially announced that they will be moving the production of the RAM trucks (formerly Dodge Ram series) from Mexico to Detroit.

The news follows an earlier announcement yesterday that Toyota and Mazda will be investing $1.6 billion to begin a joint venture in constructing an auto assembly plant in Alabama, but have not related their decision to the tax cut. Plans were announced after the election but before any talks of a tax cut.

The move will be accompanied by a $1.4 billion investment and 2500 extra jobs in Detroit. The Warren Assembly Plant will begin production of heavy-duty trucks from 2020. The Mexican plant will be 'repurposed', although it is unknown for what future commercial production. Staff have been notified of job losses in Mexico, but it is understood that there will likely be a new light duty truck production for a new model, yet unnamed and unseen.

FCA said it also would make a special bonus payment of $2,000 to about 60,000 FCA hourly and salaried employees in the United States totaling about $120 million. The CEO said this is because "the new [tax cut] bill allows us to share our savings with you [employees]"

Fiat Chrysler Chief Executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the United States, saying U.S. tax and trade policy would influence the decision. If the United States exits NAFTA, it could mean that automakers would pay a 25 percent duty on pickup trucks assembled in Mexico and shipped to the United States. About 90 percent of the Ram heavy-duty pickups made at Fiat Chrysler’s Saltillo plant in Mexico are sold in the United States or Canada, company officials said.

Vice President Mike Pence praised Fiat Chrysler’s announcement. ”Manufacturing is back. Great announcement. Proof that this admin’s AMERICA FIRST policies are WORKING!” Pence said in a Twitter posting.

The Italian-American manufacturer is basking in high share gains as it finishes the second week of 2018 with a 21% growth.
(Image)

Other companies directly citing the new tax cut bill in bonuses:
Bank of America will give 145 000 non-senior level employees in the US a $1000 bonus
Wells Fargo and Bancorp will be introducing a $15-an-hour minimum wage and Wells Fargo will be donating $400 million to various charities in 2018 to "share wealth". Both banks will be giving all employees a $1000 bonus
Comcast will be giving all of its 100 000 frontline staff a $1000 bonus and announced a $50 billion investment plan over the next 5 years
AT&T has committed a $1 billion charitable giving plan for 2018 and will issue all 200 000 employees a $1000 bonus
Walmart, the largest employer in the world with 2.3 million employees, has announced they will be raising maternity leave to 10 weeks at 100% of pay, and will be giving all of their US-based employees a tiered bonus up to $1000 based on length of service, along with a pension contribution boost. They have also raised minimum wages to $11 an hour, and committed to ensuring no American Walmart employee claims income-based welfare by 2020.

Boeing's websites cites the new law as the reason for their planned $300 million charitable giving in 2018. " Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing.

"On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States," said Muilenburg. "It's the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.""





With the slew of companies announcing several positive changes to their governance, employee compensation/standards or community relations, it seems like the usual fears by anti-business Democrats that companies will take all the tax savings for themselves and pay them out in dividends have been utterly unfounded. Not a single company has yet announced a dividend boost, but more than $100 billion has been announced in investments.

It seems that the tax cut will, at current rate of news items, emit its intended purpose of enabling growth of the economy and passing down savings from corporate treasuries to employees and communities.

Are you now more or less positive about the US economy in the coming years? How do you think this will impact inequality, if at all? Most importantly, do you attribute this as a win for the Trump administration?

Its just one company. Meanwhile his approval rating in Michigan is dismal. The tax plan might help corporations makes more profits but it doesn't help the average person whose taxes will go up.

There are still many manufacturing jobs that are never coming back. Just like coal mines continue to to close and no new coal plants are even in the planning stage.

I don't care about his approval rating. Helps the average person eventually, if they were looking for better employees they'd raise the starting salary, regardless most times you get a good salary you need to haggle, the average person these days aren't really bargainers though, and find themselves susceptible to the employers demands.

Also who cares about coal? Solar and Nuclear energy is where it's at.

[Salandriagado]

I think you misunderstood my point: my point is that most businesses will not raise prices in response to rising taxes (because doing so would just lose them more money), nor lower them due to falling taxes (because that's just throwing away free money).

Not at first ofcourse. It'll happen eventually though, typically when they distrust one another to the point where they will lower prices at first, so they get a good start of stealing competition.

... this is incoherent gibberish. They've already done that to the maximum amount that they can do that without losing more money. They aren't going any further (in most cases), because that would be suicidal.

[The Derpy Democratic Republic Of Herp]

Jumping to conclusions.
I call Detroit shit beacuse Detroit is shit.

And I just got done applauding the fact that yes this movement will make it less shit.

When would you say anything positive about Trump? If he gave every Detroiter a billion dollars?

Maybe I should clear things up:

Yay. His tax policy did something good.

Woo.

(Image)

Detroit will still suck to live in, just less sucky then before.

Walmart and chunks of Comcast still suck to work for, just less sucky then before.

And CHIP is still going to die.

But here, he did a good thing. Yay. Woo.

Did I write the bold in invisible ink or something?

In any event, any chance at me fully liking and embracing Trump died the moment where he called in an airstrike that killed children and then profited off the back of the stocks.

Any chance at me fully liking and embracing the GOP died when they cut NN, tried to cut the adoption credit and, tried to fuck over homeless vets.

The only way I'd say positive stuff about Trump is when he does good things like this.

I wasn't being sarcastic when I had all that flat joy. This is good news. That's good that the automotive industry is coming back to the US.

Just not earth shatteringly good.

[Uxupox]

I agree that they won't lower prices due to falling taxes but I do think that they will raise prices (Or lay off workers if need be) if you tax them directly.

No they wont: they can't raise prices, because that would lose them more money. Layoffs are possible, but only for businesses that are performing poorly, so this acts to strip out the less-efficient businesses, increasing overall economic efficiency. The demand for those products is still there, so more efficient businesses will take up the slack.

Historical evidence?

[Salandriagado]

And where did my post mentioned direct company taxation?

I only talked about higher top bracket taxes; I support low CIT.

Don't think I've ever seen a board of directors in the middle income bracket tbh.

Depends how good their tax accountants are. I imagine a fair chunk gain almost all of their income as capital gains or some such, and so their actual income probably falls in lower income brackets.

[Washington Resistance Army]

In any event, any chance at me fully liking and embracing Trump died the moment where he called in an airstrike that killed children and then profited off the back of the stocks.

Tbqh you shouldn't like any recent President in that case. I'm pretty most, if not all of them, have done the same.

[Holy Tedalonia]

Not at first ofcourse. It'll happen eventually though, typically when they distrust one another to the point where they will lower prices at first, so they get a good start of stealing competition.

... this is incoherent gibberish. They've already done that to the maximum amount that they can do that without losing more money. They aren't going any further (in most cases), because that would be suicidal.

Gas prices in Texas rise and fall constantly. You say they would otherwise stay at the max, but to a common gas company in Texas they need to get the edge on their competitor. I don't see those gas companies "suiciding"

[Salandriagado]

No they wont: they can't raise prices, because that would lose them more money. Layoffs are possible, but only for businesses that are performing poorly, so this acts to strip out the less-efficient businesses, increasing overall economic efficiency. The demand for those products is still there, so more efficient businesses will take up the slack.

Historical evidence?

Basic mathematics? Raising prices reduces the number of products that you sell, while increasing the profit from each. There is an optimal point on this curve. Most products are already being sold at said optimum point.

[Uxupox]

Don't think I've ever seen a board of directors in the middle income bracket tbh.

Depends how good their tax accountants are. I imagine a fair chunk gain almost all of their income as capital gains or some such, and so their actual income probably falls in lower income brackets.

Wait a minute. Doesn't most European nations have a different definition of capital gains than the United States?

[Salandriagado]

Depends how good their tax accountants are. I imagine a fair chunk gain almost all of their income as capital gains or some such, and so their actual income probably falls in lower income brackets.

Wait a minute. Doesn't most European nations have a different definition of capital gains than the United States?

Yes. I'm using US definitions here for ease of communication.

[Thermodolia]

In what is possibly the first economic effect of Trump's tax cut legislation for corporations, Fiat-Chrysler Group has officially announced that they will be moving the production of the RAM trucks (formerly Dodge Ram series) from Mexico to Detroit.

The news follows an earlier announcement yesterday that Toyota and Mazda will be investing $1.6 billion to begin a joint venture in constructing an auto assembly plant in Alabama, but have not related their decision to the tax cut. Plans were announced after the election but before any talks of a tax cut.

The move will be accompanied by a $1.4 billion investment and 2500 extra jobs in Detroit. The Warren Assembly Plant will begin production of heavy-duty trucks from 2020. The Mexican plant will be 'repurposed', although it is unknown for what future commercial production. Staff have been notified of job losses in Mexico, but it is understood that there will likely be a new light duty truck production for a new model, yet unnamed and unseen.

FCA said it also would make a special bonus payment of $2,000 to about 60,000 FCA hourly and salaried employees in the United States totaling about $120 million. The CEO said this is because "the new [tax cut] bill allows us to share our savings with you [employees]"

Fiat Chrysler Chief Executive Sergio Marchionne a year ago raised the possibility that the automaker would move production of its heavy-duty pickups to the United States, saying U.S. tax and trade policy would influence the decision. If the United States exits NAFTA, it could mean that automakers would pay a 25 percent duty on pickup trucks assembled in Mexico and shipped to the United States. About 90 percent of the Ram heavy-duty pickups made at Fiat Chrysler’s Saltillo plant in Mexico are sold in the United States or Canada, company officials said.

Vice President Mike Pence praised Fiat Chrysler’s announcement. ”Manufacturing is back. Great announcement. Proof that this admin’s AMERICA FIRST policies are WORKING!” Pence said in a Twitter posting.

The Italian-American manufacturer is basking in high share gains as it finishes the second week of 2018 with a 21% growth.
(Image)

Other companies directly citing the new tax cut bill in bonuses:
Bank of America will give 145 000 non-senior level employees in the US a $1000 bonus
Wells Fargo and Bancorp will be introducing a $15-an-hour minimum wage and Wells Fargo will be donating $400 million to various charities in 2018 to "share wealth". Both banks will be giving all employees a $1000 bonus
Comcast will be giving all of its 100 000 frontline staff a $1000 bonus and announced a $50 billion investment plan over the next 5 years
AT&T has committed a $1 billion charitable giving plan for 2018 and will issue all 200 000 employees a $1000 bonus
Walmart, the largest employer in the world with 2.3 million employees, has announced they will be raising maternity leave to 10 weeks at 100% of pay, and will be giving all of their US-based employees a tiered bonus up to $1000 based on length of service, along with a pension contribution boost. They have also raised minimum wages to $11 an hour, and committed to ensuring no American Walmart employee claims income-based welfare by 2020.

Boeing's websites cites the new law as the reason for their planned $300 million charitable giving in 2018. " Chairman, President and Chief Executive Officer Dennis Muilenburg praised the tax bill passed by Congress and about to be signed into law as a critical driver of business, economic growth and innovation for the United States and for Boeing.

"On behalf of all of our stakeholders, we applaud and thank Congress and the administration for their leadership in seizing this opportunity to unleash economic energy in the United States," said Muilenburg. "It's the single-most important thing we can do to drive innovation, support quality jobs and accelerate capital investment in our country.""





With the slew of companies announcing several positive changes to their governance, employee compensation/standards or community relations, it seems like the usual fears by anti-business Democrats that companies will take all the tax savings for themselves and pay them out in dividends have been utterly unfounded. Not a single company has yet announced a dividend boost, but more than $100 billion has been announced in investments.

It seems that the tax cut will, at current rate of news items, emit its intended purpose of enabling growth of the economy and passing down savings from corporate treasuries to employees and communities.

Are you now more or less positive about the US economy in the coming years? How do you think this will impact inequality, if at all? Most importantly, do you attribute this as a win for the Trump administration?

Its just one company. Meanwhile his approval rating in Michigan is dismal. The tax plan might help corporations makes more profits but it doesn't help the average person whose taxes will go up.

There are still many manufacturing jobs that are never coming back. Just like coal mines continue to to close and no new coal plants are even in the planning stage.

Many will be coming back as manufacturing won’t be in Mexico anymore. NAFTA is good as dead. The cheep Mexican labor won’t be a thing anymore and at the moment a fully robotic factory is impossible

[Uxupox]

Historical evidence?

Basic mathematics? Raising prices reduces the number of products that you sell, while increasing the profit from each. There is an optimal point on this curve. Most products are already being sold at said optimum point.

That depends completely on the specific market product that is being sold.

[Uxupox]

Wait a minute. Doesn't most European nations have a different definition of capital gains than the United States?

Yes. I'm using US definitions here for ease of communication.

In the United States you have to actually report any capital gain that was made on yourincome taxes though.

[Salandriagado]

Basic mathematics? Raising prices reduces the number of products that you sell, while increasing the profit from each. There is an optimal point on this curve. Most products are already being sold at said optimum point.

That depends completely on the specific market product that is being sold.

Hence the word "most".

[Salandriagado]

Yes. I'm using US definitions here for ease of communication.

In the United States you have to actually report any capital gain that was made on yourincome taxes though.

Things that go on the same form as income taxes =/= things that are taxed as income.

[The Derpy Democratic Republic Of Herp]

In any event, any chance at me fully liking and embracing Trump died the moment where he called in an airstrike that killed children and then profited off the back of the stocks.

Tbqh you shouldn't like any recent President in that case. I'm pretty most, if not all of them, have done the same.

Called in an air strike that killed civvies? Yes.
Profited off the back of the stocks?

Thats making blood money off of the deaths of the innocent.

[Washington Resistance Army]

Tbqh you shouldn't like any recent President in that case. I'm pretty most, if not all of them, have done the same.

Called in an air strike that killed civvies? Yes.
Profited off the back of the stocks?

Thats making blood money off of the deaths of the innocent.

Yeah I'm pretty sure Obama had stocks in weapons manufacturing. Such things are relatively stable and good stocks to buy so lots of people do it.

[Uxupox]

In the United States you have to actually report any capital gain that was made on yourincome taxes though.

Things that go on the same form as income taxes =/= things that are taxed as income.

Most of the time they are taxed as ordinary income.

[Salandriagado]

Things that go on the same form as income taxes =/= things that are taxed as income.

Most of the time they are taxed as ordinary income.

Unless you're competent, and make them long term capital gains.

[Holy Tedalonia]

Tbqh you shouldn't like any recent President in that case. I'm pretty most, if not all of them, have done the same.

Called in an air strike that killed civvies? Yes.
Profited off the back of the stocks?

Thats making blood money off of the deaths of the innocent.

Called in air strike that killed civvies? You realize that Obama did the same thing. VIP Terrorist hide in crowds and there are often undesired deaths.

[The Derpy Democratic Republic Of Herp]

Called in an air strike that killed civvies? Yes.
Profited off the back of the stocks?

Thats making blood money off of the deaths of the innocent.

Yeah I'm pretty sure Obama had stocks in weapons manufacturing. Such things are relatively stable and good stocks to buy so lots of people do it.

I don't think he did?

Called in an air strike that killed civvies? Yes.
Profited off the back of the stocks?

Thats making blood money off of the deaths of the innocent.

Called in air strike that killed civvies? You realize that Obama did the same thing. VIP Terrorist hide in crowds and there are often undesired deaths.

Did he make blood money off the back of it?

[Holy Tedalonia]

Yeah I'm pretty sure Obama had stocks in weapons manufacturing. Such things are relatively stable and good stocks to buy so lots of people do it.

I don't think he did?

Called in air strike that killed civvies? You realize that Obama did the same thing. VIP Terrorist hide in crowds and there are often undesired deaths.

Did he make blood money off the back of it?

There is no blood money.

He would have to get money from their deaths. To say death is profitable is nonsense unless your a city looter.