Pres. Trump’s Worthless And Somwhat Harmful Proposal To Reduce Taxes For Manufacturing In The U.S. From 21% To 15%

[solutions]

.

Pres. Trump’s Worthless And Somwhat Harmful Proposal To Reduce Taxes For Manufacturing In The U.S. From 21% To 15%

---------------------------- Original Message -----------------------------
Subject: President Trump’s Reduced Corporate Taa Rate For Domestic Manufacturing
From: Solutions
Date: Fri February 21, 2024 10:43 am PST
To: ReadingLiberally-SaltLake@johnkarls.com
Attachment:
----------------------------------------------------------------------------------

Dear John,

I was re-reading your Second Short Quiz which will be featured in this evening’s weekly e-mail.

Entitled “The World’s Wealthy Old Widow (i.e., the U.S.) Selling Her Crown Jewels To Survive,” its Questions 3-30 detail how China has been delighted for the last 30-40 years to manufacture for U.S.-Based Multi-National Companies the US-MNC’s products using the US-MNC’s technology under the US-MNC’s supervision.

I was shocked and appalled to learn that the US-MNC’s were able to capture virtually all of their worldwide profits in tax-haven subs (primarily Non-Resident Singapore Subs) where they escaped U.S. tax entirely provided the profits were loaned to the CHUMP U.S. companies that had not exported American jobs.

I was further shocked and appalled to learn that the 2008 Economic Meltdown was caused by Congress suddenly permitting these $4 TRillion - $5 TRillion of profits that had piled up in the tax-haven subs to be repatriated to the US-MNC’s at a special one-time 5.25% tax rate rather than the then-normal 35% tax rate (MICROSOFT ALONE HAD $1 TRILLION IN ITS TAX-HAVEN SUBS) – forcing the CHUMP U.S. companies that had not exported American jobs, TO REDUCE AMERICAN PAYROLLS AND CAPITAL EXPENDITURES BY $4 TRILLION - $5 TRILLION in order to repay the tax-haven subs of the US-MNC’s.

With a forced 10% work-force reduction, is it any wonder that the real-estate market tanked because the homes of all those fired workers were foreclosed – as would have happened whether or not there had ever been a sub-prime mortgage?

I was further shocked and appalled that President Trump’s 2017 “Tax Cuts and Jobs (sic) Act” was poised to do the same thing all over again –

(1) President Trump proudly proclaimed that there was another $4 TRillion - $5 TRillion (“we actually think a lot more” he often said) of supposedly “offshore funds” without bothering to inquire whether these funds were actually stuffed in mattresses in Singapore, or whether they (like in 2008) had long-since been loaned to the CHUMP U.S. companies that had not exported American jobs so that the funds had already been used for US payroll and capital expenditures.

(2) It was only because our organization tutored the 12 Presidents of the 12 Regional Federal Reserve Banks re what their duty to America required them to do that they and America averted another economic meltdown on the order of 2008 (or greater if Trump had been correct about the actual size of such funds).

[A copy of our 4-page letter tutoring the 12 Presidents of the 12 Regional Federal Reserve Banks, together with USPS Certified-Mail Return-Receipt tracking numbers, is available for download at viewtopic.php?f=23&t=1685&sid=589a9b21a ... 45faf37c68.]


*****
Sorry for such a long introduction!

However, all those shocks to my system about how ignorant President Trump seems, made me wonder about the wisdom of his much-ballyhooed tax proposal to reduce the U.S. corporate income tax rate from the post-2017 rate of 21% to 15% for profits from manufacturing in the U.S.

Have you thought about this?

Your friend,

Solutions


---------------------------- Original Message -----------------------------
Subject: Pres. Trump’s Worthless And Somwhat Harmful Proposal To Reduce Taxes For Manufacturing In The U.S. From 21% To 15%
From: ReadingLiberally-SaltLake@johnkarls.com
Date: Fri February 21, 2024 9:47 pm MST
To: Solutions
Attachment:
----------------------------------------------------------------------------------

Dear Solutions,

Thank you very much for your e-mail – I’m sure you JUST KNEW that I would have thought about Trump’s proposal.

The answer comes in two parts –


***********
TRYING TO BRING MANUFACTURING HOME FROM PLACES LIKE CHINA

The proposal is worthless in this regard.

As you may have noticed, Trump’s 2017 “Tax Cuts and Jobs (sic) Act” cut the 35% tax to 21% on DOMESTIC profits.

BUT MORE IMPORTANTLY, it cut the 35% tax to ZERO on FOREIGN PROFITS.

So why would any US-MNC (which doesn’t need a Non-Resident Singapore Sub any more to capture virtually all of its worldwide profits OFFSHORE free of U.S. tax) be SO STUPID as to subject those profits to a 15% tax???

Moreover, why would they give up using cheap Chinese labor in order to

(1) reduce or eliminate their profits, and

(2) subject any surviving profits to a 15% tax rather than ZERO???


***********
THE CHUMP U.S. COMPANIES THAT HAVE NEVER EXPORTED AMERICAN JOBS

The proposal is harmful in this regard.

Why should they suddenly get a tax reduction for what they are doing anyway???

Which will only aggravate the annual U.S. deficit and add to the accumulated U.S. debt???


**********
VALEDICTION

Just like Pres. Trump’s 2017 “Tax Cuts and Jobs (sic) Act” – his ignorance and/or stupidity re the tax reduction for U.S. manufacturing is also breathtaking.

But why are all his economic advisers also so breathtakingly ignorant and/or stupid???

Perhaps some sarcasm such as this might finally do some good since Trump seems to react to it!!!

Thank you again for your e-mail.

Your friend,

John K.