Posted on 12/27/2017 7:52:10 AM PST by GonzoII
President Donald Trump’s new tax law spells savings for BMW and other big German companies that produce and sell their products in the United States. Not so for smaller firms.
And so there’s a certain irony to the fact that the tax reform bill, signed into law last week, has also given a gift to some of Germany’s larger companies, including its carmakers. The simple reason is that some of these companies already produce a large amount of their goods in the United States....
(Excerpt) Read more at global.handelsblatt.com ...
German companies investment gift to the United States
Germany Loses Out in US Tax Reform [25% Increase in US Investment From German Companies Forecast]
Frohe Weihnachten und einen guten Rutsch ins neue Jahr!
Great example of how fake-news is created. The headline makes it seem like there is some special bonus for German companies, when it’s just that their U.S. operations will benefit from the same 21% tax rate as the U.S. operations of U.S. firm will.
But the next part is even better: “Not so for smaller firms” is inserted in the first paragraph and then ignored. there’s no test in the tax law that somehow benefits large firms over small firms and the author probably knows that, or doesn’t care. So he throws that line in there like subliminal advertising and then never comes back to it, planting a little seed to make the reader think that (just as the Democrats claim) the tax law is just a gift to big corporations and rich people.
This is how they twist things to create “news” articles that promote their leftist thoughts.
A slippery New Year!
Don't you mean "rutschiges neues Jahr"?
I wish no evil...
And a good slide to you!
Taxable income over Not over Tax rate
$ 0 $ 50,000 15%
50,000 75,000 25%
75,000 100,000 34%
100,000 335,000 39%
335,000 10,000,000 34%
10,000,000 15,000,000 35%
15,000,000 18,333,333 38%
18,333,333 .......... 35%
A business that has $1m in pretax profits (typically $15m in sales) would save ~150k in federal taxes. I'd say it increases the incentive for foreign businesses to try their luck stateside.
Dear Ulf,
The overwhelming benefit is American Jobs, Jobs, JOBS.
A tax break for a foreign country is just a side benefit and well worth the price. How many times does a state or city give a tax holiday to some company in appreciation for it moving into their area?!!
Same difference!
"BMW's factory in Spartanburg, S.C., is the brand's biggest plant in the world, and it will become even larger when a $1 billion expansion is completed this year, bringing annual capacity to 450,000 vehicles. Last year, it built a record 400,904 vehicles -- topping that of any of its factories in Germany, BMW says. More than 280,000 crossovers made in Spartanburg were exported."
The factories are IN AMERICA and are paying wages to AMERICAN WORKERS. What more can be asked? That is what happens with reduced costs of doing business in a country. More and more companies will set up businesses in the low tax milieu. This is a good thing. THIS IS WHAT WE WANT TO HAPPEN.
EXACTLY!
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