Posted on 02/16/2016 3:15:24 AM PST by expat_panama
Edited on 02/16/2016 3:58:44 AM PST by Sidebar Moderator. [history]
“US controlled foreign subsidiaries like Ford Mexico still pay US taxes.”
Actually, that is not true at all. Mexican laws require any corporation in Mexico to create a completely independent legal entity for their Mexico operations.
“They move to have their products built for $2 per hour instead of $20 per hour.”
Actually, the fully fringed cost of labor is much worse than that in the US and it is getting worse by the day. You can thank individual expectations (good), unions (good/bad) and government regs (bad.) It is going to get much, much worse when Obamacare comes into full effect.
Trump has used Ford Motor as his foil to make this point, so let’s look at their numbers. The average profit on a Ford vehicle (all fleets) was about $600 per car/truck. In general they take a loss on small car production, but make much larger profits on their truck production. By moving their small car production to Mexico, they are hoping to break even on cars!
If my memory serves, Trump has proposed a 30% tariff on Ford cars made in Mexico and shipped into the US. If the average cost of the small car is $20K, that means that the US customer would be charged $26K! Trump isn’t punishing Ford, he is punishing YOU!
One last thing, do you know what other country has tariffs at such numbers, with the intent of “keeping jobs in their country?” Brazil! I can tell you from personal experience that it has done nothing but harm the average Brazilian’s quality of life! The result is that not much is made OR imported into Brazil. If we WANT a Brazilian lifestyle, we just need to institute high tariffs....
“Republucan primary process is a bloody cock fight. Current GOPe party leaders are so worthless managing process compared to how democrats run theirs. Sick of it. Too many debates, too long in the ring listening to all of the screaming & lying from all the candidates.
I know who I am voting for. Taking a break & Tuning out until later.”
I completely agree with you on this one!
“If we are to avoid becoming Venezuela II it will be because of Trump,”
Yeah, Venezuala used to be the richest country south of our border! Then the people elected an authoritian, populist with socialist preferences......
We need to avoid that by voting for an authoritarian, populist with socialist preferences!
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