How Would Trump Punish Companies For Leaving The US?

[Deleted User 8570]

The AP had a good write up on this... it's a mixed bag for sure...

WASHINGTON (AP) — President-elect Donald Trump threatened in a series of early-morning tweets Sunday to punish American companies that move plants and jobs to other countries.

The proposal — along with Trump's negotiation to get appliance maker Carrier to keep 800 jobs from going to Mexico — suggests the incoming president will put unprecedented pressure on U.S. companies to keep jobs in the United States.

A look at what Trump is doing and how it might work out:

WHAT WOULD TRUMP DO?

Trump said he'd impose a 35 percent tax, called a tariff, on companies that close U.S. factories, cut American jobs, then relocate abroad and try to sell their products back to the United States.

"Please be forewarned prior to making a very expensive mistake," the president-elect tweeted.

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WOULD THAT BE LEGAL?

Trump would likely need congressional approval to impose tariffs on a specific company or a group of companies, says Gary Hufbauer, an expert on trade law at the Peterson Institute for International Economics. He suspects that courts would block any such move if the president tried to do it himself. The president has broad authority to impose tariffs on specific categories of imported goods, but not to single out specific companies that make them, Hufbauer says.

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WHAT WOULD TARIFFS MEAN TO CONSUMERS?

Higher prices, most likely. Tariffs are charged at the border, and most importers likely would try to pass along as much of the higher cost as possible.

Capital Economics estimates that tariffs of 45 percent Trump has threatened to impose on Chinese imports would raise the price of those products an average 10 percent. The Peterson Institute calculates that a 2009 tax on Chinese tires cost American consumers $1.1 billion in higher tire prices — equal to more than $900,000 for every job saved in the domestic tire industry.

Tariffs can cause collateral damage, too. When the George W. Bush administration slapped tariffs on steel imports in 2002, U.S. steel makers took advantage by raising their own prices. Companies that buy steel said the higher costs meant they had to cut thousands of jobs.

[Bryce]

Here's the way I look at this:

Although I'm not a fan of tariffs because you let the government get involved, and some flunky somewhere gets involved with picking winners and losers, the 35% tax rate seems fair and across the board and applied to all.

Currently the federal corporate tax rate is 35%. If you move off shore, you will just be paying the same as you do now while you are based here. T Rump states that he's going to lower the corporate tax rate. If he does so, there is much less incentive to move off shore. Those that do will just be paying the rate they are now.

[Circle Seven]

How would he punish them? How 'bout a public outing?
Seeing as one of his notable attributes is more hot air than the Albuquerque Balloon Festival, would you really be suprised if he used the presidential bully pulpit to let one and all know the names of companies that leave or outsource production, figuring his fellow Americans will boycott the products.

But based on how Carrier worked out, why leave? From what I've read, all he really did was throw them a heaping helping of tax credits. Nothing like setting a precedent for other companies, that ends up getting the taxpayers to pay for it in a reach-around kind of way.

[Turkeytop]

Trump punished Carrier by having Gov. Pence cut them a check for $7M. Can't call it a bailout. The Company is in good shape. It's more like paying a ransom for the800 jobs. Corporate Welfare. No different than Obama.


http://www.cbc.ca/news/world/carrier-tr ... -1.3879089

[Deleted User 8570]

Trump punished Carrier by having Gov. Pence cut them a check for $7M. Can't call it a bailout. The Company is in good shape. It's more like paying a ransom for the800 jobs. Corporate Welfare. No different than Obama.


http://www.cbc.ca/news/world/carrier-tr ... -1.3879089

I think the worst thing is that 1100 still went south of the border despite the 800 he saved so he wasn't super negotiator at your service or anything here...

[audiophile]

The film incentives started in 2007 under former Gov. Jennifer Granholm and the program peaked during her last year in office in 2010, when $115 million in incentives were awarded.

How soon they forget about what their former favorite governor did...

[Turkeytop]

But Trump ran on a campaign opposing Crony Capitalism and threatened to "punish" Companies who export jobs. I guess throwing $7M at them must be tough love.

[audiophile]

What about 12 million that needed for a recount?

That supplies no permanent jobs.

[Deleted User 8570]

What about 12 million that needed for a recount?

That supplies no permanent jobs.

Lots of things supply no permanent jobs... what sort of narrow criteria is that?

[Turkeytop]

What about 12 million that needed for a recount?

That supplies no permanent jobs.

The issue isn't whether the $7M or the $12M is money well spent. The issue is that Trump is a phony. He is doing the exact opposite of what he campaigned on. The people voted for change, but they got more of the same. More crony Capitalism. Obama's third term, really.

This wasn't even a bailout. It was a surrender to corporate extortion.

When the truth finally emerges, you'll probably find out that Trump was really born in Kenya. He and his twin brother were separated at birth.

[audiophile]

Trump is a wild card...period.

Here a potential 4 billion savings:

http://mobile.nytimes.com/2016/12/06/us ... oeing.html

[Deleted User 8570]

Trump is a wild card...period.

Here a potential 4 billion savings:

http://mobile.nytimes.com/2016/12/06/us ... oeing.html

Only possible because the man has his own jet...

[Turkeytop]

Trump is a wild card...period.

Here a potential 4 billion savings:

http://mobile.nytimes.com/2016/12/06/us ... oeing.html

So, instead of punishing Carrier for exporting jobs, as he had threatened to, he rewarded them with a $7M gift. Now he wants to punish Boeing, who isn't exporting any jobs.

[Bryce]

The Carrier deal may not be "socialist" in nature, but it certainly is not in line with the principles of free market capitalism. Corporate welfare or crony capitalism may be the correct terms.

[TC Talks]

I would like the Federal Government to drug test the top three levels of leadership of any company receiving Government subsidies. I don't trust that they will use the money responsibly.