The
purpose of the corporate tax rate cuts from 35% to 21% gave the highest taxed
corporations an extra 14% to add to their gross margin forever. This is
designed to allow US companies a chance to absorb whatever costs they would
incur if they moved their manufacturing plants and engineering operations back
to the US. The tax cuts also allowed companies to return their foreign earned capital
back to the US with a low 10% tax rate, so they would have the cash to relocate
back to the US.
Tech
companies like Apple appear to be led by globalists who are rejecting Trump’s
plan on ideological anti-American grounds. They might cling to this suicidal track
until November to see if their socialist Democrat candidates can take over the
House or Senate. China is also waiting for this election before they agree to
open their market. Republicans will probably retain control of Congress.
Trump
doesn’t need Apple or China to change their ways. Trump’s tariffs will create a
level playing field for US-based manufacturing to continue to rebuild middle
class jobs in the US. Chinese consumers
will not pick up the slack and US consumers will reduce their support of higher
priced Apple products.
China
will have to adapt to having less manufacturing as US companies move their
operation back to the US. China should look at lowering their tariffs. They
have nothing to lose.
TRUMP OFFERS APPLE AN OLIVE BRANCH DURING TARIFF
TALKS – CHINA SHOULD BE VERY AFRAID!
By DAPHNE MOON, 9/8/18.
President
Trump announced the biggest Tariff on China, yet, and offered Apple a way
around the painful process to come. Many of Apple’s products components are
made in China so it’s easy to see how this could hit them hard.
Trump offered a win-win to the tech
company. By telling them to open plants in the United States he’s proposing
more jobs for American’s while helping the company navigate through the
financial burden those Tariffs would have.
China should be terrified. If Apple
takes Trump up on his offer other companies using China for their products
could follow. Imagine getting a new phone that says: ‘made in America’. Hopefully,
Apple will take Trump up on his offer before it’s too late.
Trump tweeted: “Apple prices may
increase because of the massive Tariffs we may be imposing on China – but there
is an easy solution where there would be ZERO tax, and indeed a tax incentive.
Make your products in the United States instead of China. Start building new
plants now. Exciting!”
Apple Wrote: “Given the balance of Apple’s economic
footprint, the burden of the proposed Tariffs will fall much more heavily on
the United States than on China,” “Tariffs increase the cost of our U.S.
operations, divert our resources, and disadvantage Apple compared to foreign
competitors.”
The
company in August became the first publicly traded U.S. entity to reach $1
trillion in market value, The Washington Examiner reported.
Here’s the thing, China doesn’t have
much of a leg to stand on. They’re not a ‘market’ economy. The fact that their
government wants to raise their Tariffs won’t really make an impact on the
global market. In a return threat, China stated that if Trump raised Tariffs on
China to 200 billion they would apply 60 billion Tariffs of their own.
That’s a big price gap and here is
why: China can’t match the United States in Tariffs because we simply do
not sell as many goods to Country. In addition to not being a market economy,
the Chinese aren’t really a consumer economy, either.
They have taken advantage of the U.S. in the past because the
American government wasn’t paying much attention to the Tariffs that China was
imposing on the U.S. Point blank, China’s economy needs the United States
way more than the U.S. needs them.
Norb Leahy, Dunwoody
GA Tea Party Leader
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