Uh huh, like Nike, Ford, GM. Just think of those high wages for the employees of Cooper, (well the ones who still have jobs) the makers of Crescent wrenches and Halo lighting among others. Let's not forget to mention Stanley Products (now made in China)....you probably noticed their lower prices too.
How about those high wage Mexican workers making $30.00 dollars a day building $25,000 + Volkswagens. Now it seems Mexico is no longer cheap enough either. Manufacturers are now fleeing Mexico for parts unknown.. (no wonder the Mexicans are fleeing their country)
The article "points out" what it "allows", yet it doesn't have proof or examples of anything "allowed" actually ever being a fact.
"Uh huh, like Nike, Ford, GM. Just think of those high wages for the employees of Cooper..."
Lewy, Lewy, Lewy. There you go again getting all mixed up on what the article was all about.
I'm not sure about Nike, but Ford and GM are US incorporated companies that still pay tax on ALL of their worldwide income. The Washington Times article was talking strictly about US incorporated companies that are reincorporating offshore, but leaving their existing US operations in the US.
Companies like Transocean, a drilling company that relocated first from Delaware to Texas (Houston) and then eventually to Cayman Islands, did nothing more than move their company incorporation home. They still maintain all of the US facilities and US jobs that they did before the reincorporation. It was nothing more than a paperwork shuffle. I know people who work for them and they have told me that benefits that had been getting worse, improved significantly, only a few months after the reincorporation. Once the company was able to compete on an equal footing with other offshore companies, they did what most companies that are flush do - they rewarded their employees. They have also been able to drop the cost of their services to be more competitive in the market.
I just used that one example, because I am familiar with it, but the list of similar outcomes is long. The companies that they are talking about are not moving jobs out of the United States. Just repeat to yourself:
It's only a paperwork shuffle... It's only a paperwork shuffle... It's only a paperwork shuffle...
The problem that you are getting it mixed up with is companies moving their manufacturing offshore because it is not practical to pay US minimum wage to someone who does nothing more than put shoelaces in tennis shoes. Those companies are not trying to escape an abusive tax system with that kind of move. It's a different federal regulation that they are trying to get around - the ridiculous minimum wage.
Offshore reincorporation is NOT the same thing as manufacturing flight. Let's hear it again - just one more time and breathe slowly.:
It's only a paperwork shuffle... It's only a paperwork shuffle... It's only a paperwork shuffle...