Posted on 02/07/2016 7:46:41 PM PST by 11th_VA
Auto giant Ford is planning a new assembly plant south of the U.S. border, the Wall Street Journal reported Sunday, and will sharply increase factory output from Mexico just months after signing a labor deal.
Citing people familiar with the matter, The Journal reported that Ford will add half a million units of annual capacity from Mexico starting in 2018, which is double the amount it built in 2015. The new assembly complex will be based in An Luis Potosi, and Ford will expand an existing facility near Mexico City, the publication added.
(Excerpt) Read more at yahoo.com ...
So his solution is to tax the people buying the cars?
I’m saying if our businesses were not so overburdened with regulations /taxes they would not be leaving. I don’t know how a VAT would make them stay. It wouldn’t make them sell more product. It would just give our government an excuse to spend more. They would still have taxes/regulations. Plus, payroll taxes, health insurance, business insurance etc are astronomical. That’s not even mentioning the expense businesses endure so they can be environmentally friendly as required by law. Mexico/China doesn’t have these costs. If it wasn’t more expensive to stay here, companies wouldn’t be leaving. Sounds like you have no experience running a business. Either that or you have your head up your a$$.
I guess George Washington had his head up his ass when e signed the Tariff act of 1789?
Reducing taxes and regulations, which is a good thing, would do nothing to stop off shoring because that is not the reason why manufacturers off shore.
Business Insurance, Health Insurance, Payroll Taxes, Business Taxes, Regulations etc. Then, to add insult to injury, the union threatens to strike if they don’t get more. I don’t know how business can continue in such a combative environment.
Every small business has to combat these same things without armies of lawyers and accountants on their staff. Big cap manufacturers LOVE regulations as it keeps the small riff-raff startups from gaining a foothold.
Fixed.
The Smoot Hawley tariffs of the 1930s reduced imports AND exports by 65%, crushing the US economy.
If Trump institutes 45% tariffs he will bring about a second Great Depression.
You do understand what a VAT tax is?? The product is taxed at every stage (production, sale). Bottom line, our product will still be more expensive to produce then the product coming across our border. Please explain how a VAT tax would keep companies here.
And if Ford were to move at least some of the production back here they're guaranteed 35% increase on the price they could otherwise charge. Paid by the consumers.
You dumb a$$ we don’t have a VAT and that is good thing. You say corporate taxes are high I am saying they are not that high because you Free Traitors™ fail to mention their is no VAT in the USA making our tax environment better than the EU.
Yes a lot of it is low wages, no benefits have to be paid etc in these other countries. Its super cheap to operate. Its not all about taxes. Trump is not a stupid guy he knows how it works.
No, Ford would eat most of that tariff. It works both ways any production cost savings using wetback stoop labor is not passed on to the consumer but to the stock holders. The tariff would eat into the profit margin and Ford would have to move back to the USA because of domestic competition, that is the whole point.
Sure they will since corporations look for any excuse to take a hit on their profit margin. What would happen is the price of the Fusion would go up 35% and the price of the F-150 would go up a bit since it's manufactured in both Mexico and the U.S.
Ok you have two factories making the same model, one in Mexico and one in the USA. One factory has a 20% profit margin the other a -10% margin. Which factory are you going to maximize production? IS GM going to go for market share or raise their prices? Domestic competition keeps prices at the level they were before the factory went to Mexico.
I was just quoting the information provided about Mexico’s Labor Costs being 20% of U.S. Labor Costs.
Now, if it really isn’t that much in the total cost to build the Vehicle, why not make them here so the same People that build them can buy them?
I know, that’s a protectionist argument. Of course, it’s much more than Labor Costs, it’s the stifling Regulations that impact Companies making such large Investments in the required Infrastructure and Tooling.
The Federal Government pushes Companies outside the Borders just as State Governments push Companies to other States.
I wonder when a true Free Enterprise System actually existed in this Country, 60 Years ago maybe more?
Those hotels and golf courses use local labor to build and maintain and operate. So it’s not the same thing as shipping products into a country.
I stand by my original response to your Post #50.
Offshore Manufacturing and Tourist Destinations are Apples and Oranges. Besides, most of Trump’s Developments are already in the United States and they bring in plenty of money from overseas Investors and Tourists.
Gee, we already have Disneyland Parks in Paris, Tokyo and Hong Kong I believe. Should they close those up?
As for your second paragraph, I guess Trump had better sell off the Scotland Golf Course if it’s so bad if he is losing Money. I don’t know enough about it to say any more.
Required Disclaimer: I am a Cruz Supporter first with Trump as my second and only other choice. That being said, I will Vote for ANY Republican in the General Election against the DemoncRat Nominee.
What are doing on a conservative site? You belong on DU with your liberal friends espousing protectionist BS. No thanks. I'll stick to sound conservative principals over Marxist dribble.
Funny, Karl Marx liked free trade it hastened the destruction of the middle class.
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