Subject: RE: Just something to think aboutOriginally posted by spudoneTax rates aren't the reason for our trade imbalance with China - it's the cost of labor (mostly), and infrastructure (to a lesser degree) - now that they've had that manufacturing base for many years. There's definitely more to it than just taxes, but it all plays a part. One aspect of the taxes many don't realize is that companies sell all their products overseas based out of countries overseas because those profits can be taxed at better rates through those companies. So there's the manufacturing of the products and then there's the sale of those products. The sale of those products will likely come back in big chunks. As for the manufacturing of products, labor is cheaper in China, but the level of productivity is lower, the quality of work is lower, the theft of intellectual property is greater, the costs to ship are greater, the customer experience is lower, etc. Companies have to look at the whole picture to decide where to manufacture their products and as I mentioned earlier they will not all come back but a significant chunk will. |